Construction business was up.
Because construction firms are busy, construction accounting improvements have been put off.
Most construction market niches and regions of the United States have bounced back from the depths of the Great Recession from 2007 to 2009 and enjoyed several years of steady, but not spectacular, growth. Get ready for a change of pace, as many economic indicators point to a construction market growing a bit slower than it has over the last few years.
Source EC&M Magazine
So, now is a great time to review construction firm accounting.
So what can construction firms do now?
Firstly, make sure your accounting reports are accurate. Most importantly, review budgets and forecasts. Ask competent professionals for advice. Secondly, look at soft costs such as bidding , insurance and professional costs. Lastly, rethink construction accounting systems. In other words, construction accounting.
Review:
- Margins.
- Win/Loss.
- KPI’s.
- Employee turnover.
- Capital budgets.
Good construction margins
What is going to happen?
Pre-Covid jobs are coming to a close. The construction industry is characterized by boom and bust. Therefore, good margins will be a challenge. Construction accountants and managers must reconsider margins. In other words, cut costs. Primarily, there will be new opportunities. Secondarily, there will challenges. Lastly, construction firms will seek better efficiency.
New QuickBooks 2021 Enterprsie Features cut costs.
Fortunately the new version and T sheets cut construction contractor costs.
Firstly, the software is less expensive.
Secondarily, there are millions of QuickBooks users. In other words, QuickBooks Desktop users can be trained to use QuickBooks Enterprise. Therefore, its easy to get accurate construction accounting. In addition, timely and useful.
Thirdly it’s form driven. As opposed to post driven. Therefore, training costs are less. In other words you can train non-accountants to do the work.
What many accounting professionals do not know is:
- QuickBooks Enterprise is a major upgrade from Desktop. For instance it is scalable from 5 to 30 users.
- You can audit the transactions with ctrl Y.
- The new advanced inventory features are substantial.
- T sheets does geo tracking. For instance, a construction field crew is notified when approaching a customer. So, the firm can start job/customer billing. The result is you can use standard costs to audit or adjust month end job costs. The enhanced payroll feature can is free. Furthermore, it can be “jury rigged” to provide job costs.
- Programs such as Job boss, NetSuite, Sage 100, Epicor and SAP have better reports. It’s true. However, you can customize QuickBooks reports to get the same result. In other words a knowledgeable construction CPA can save costs.
- Intercompany functionality.
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