Bookkeeping & Accounting for Builders & the Construction Industry

 

Unique Challenges in the Building & Construction Industries.

 

If you’re a builder or working in the building and construction industry, you’d know just how different the industry is to other industries. These differences present a range of challenges to those working in the building and construction industry. Projects can last for months, years, or even decades, and there is rarely a fixed structure of any business in the building and construction industry. Today, we’re talking about bookkeeping for builders, and presenting an idea that builders may never have considered: by outsourcing your bookkeeping for builders, you can put your business in a better position to deal with the unique challenges of the construction industry.

ookkeeping & Accounting for the Building & Construction Industry

Bookkeeping & Accounting for the Building & Construction Industry

Here’s What Happens When People in The Building and Construction Industry Do Their Own Bookkeeping

 

The building and construction industry is undoubtedly a fast-moving one. New technologies and ever evolving safety standards and procedures keep industry leaders on their toes, while the ebb and flow of new contracts along with at times harsh working conditions can mean a steady stream of employees and contractors coming and going from work sites.

To keep abreast of the changing conditions, business owners must stay on top of their bookkeeping for builders. Employee information must be up-to-date, invoices must be generated without delay, and accounting software must be updated once a week at a minimum.

While these rules make sense on a logical level, the practical reality is that business owners in the building and construction industry simply don’t have time to give their bookkeeping the attention it deserves. When people in the industry attempt to take care of their bookkeeping for builders themselves, the following problems often occur:

  • Cash flow issues resulting from inaccurate job quoting
  • Over or under-stocking of equipment and supplies caused by poor stock management
  • Problems with the ATO caused by unintentional discrepancies in financial reports, and
  • Overdue or inaccurate invoices as a result of poorly tracked interim and job completion invoicing and payment follow-ups.

The issues caused by poor bookkeeping for builders are serious and potentially extremely costly to business owners. Luckily, they are entirely preventable by outsourcing your bookkeeping for builders to an overseas professional.

What Happens When You Outsource your Bookkeeping for Builders?

 

The first thing that will happen when you outsource your bookkeeping is that the bookkeeper will recommend the best online, cloud-based bookkeeping software for your business. Not all bookkeeping software packages are alike, and professional bookkeepers know the best systems to use for businesses in the building and construction industry.

Did we mention that this bookkeeping system will be cloud based? That’s right, you and your outsourced bookkeeper will be able to securely access and update your financial records at any time from anywhere. It is the advent of cloud-based bookkeeping software like Xero that has enabled bookkeeping to be brought down to a fraction of its former price, allowing business owners to work directly with a university qualified, highly experienced bookkeeper in the Philippines at much cheaper rates than if you were to hire a local bookkeeper – or worse, if you left the bookkeeping to your accountant.

From Good Bookkeeping Comes Valuable Reporting

 

Good bookkeeping is so much more than just preparing financial information in readiness for your accountant to prepare your end of financial year tax return. Up-to-date bookkeeping allows valuable reports to be generated at any time, giving you an up-to-the-minute look at the current financial position – including cash flow – of your business at any time.

The accuracy and timeliness of financial reports can make or break a business, particularly one in the construction industry. Without accurate insights into your business’s cash flow, it is extremely difficult to make appropriate financial decisions – and wrong decisions in this industry can be costly.

To find out how you can outsource your bookkeeping for builders and maximise the potential of your business in the building and construction industry, contact Free My Cloud today. You’ll be glad you did.