24Mar 2011 by Randal DeHart

Construction Accounting – Why You Should Outsource It

From Our Guest Bloggers
Why Outsource Your Construction Bookkeeping? A Simple Explanation Of Construction Accounting And Why You Should Outsource It: It is probably the most difficult and complex accounting system ever invented It is deceptively simple, it looks easy, like flying a plane 85% boring, 15% sheer terror At the auction every contractor learns the true cost of cheap accounting EXTERNAL Accounting is all about things going on OUTSIDE your business: Financial Statements for bank loans, lines of credit, investors and bonding requirements Tax returns for local, state and Federal tax returns Bankruptcy court filings, some firms do not generate financial statements until they are here All of these reports and forms are of limited use to the contractor INTERNAL Accounting is all about things going on INSIDE your business: Current bank balances…
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10Feb 2011 by Randal DeHart

The Contractor And The Black Box

From Our Guest Bloggers
A contractor's work is tangible; it's seen, touched, heard, smelled, and judged good or bad. Bookkeeping is intangible. Paperwork given to The "Keeper of the Books” is input into the “Black Box” and reports come out, eventually, someday. Ideally, these reports tell contractors how much money they made or lost and where it all went. If the reports from Black Box match the bank’s records, the suppliers unpaid bills, and money their customers owe them then the Black Box has value. However, in most cases Black Box reports do not agree with everyone else’s records the contractor becomes angry and distrustful because he is not in control of the Black Box. The Keeper of the Books is in control of the Black Box and the reports it can generate which…
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