0236: Highly Profitable Contractors Control Who Receives Company Information

Contractor Success Map with Randal DeHart | Contractor Bookkeeping And Accounting Services

0236: Highly Profitable Contractors Control Who Receives Company Information

Released: Sep 29, 2017

This Podcast Is Episode Number 0236, And It Will Be About Highly Profitable Contractors Control Who Receives Company Information

You Have Ultimate Control On Who Has Or Receives Information About Your Contracting Company

Financials statements are based on the information you provided. I know this is not a statement that any contractor wants to hear about their bookkeeping. It is easier to blame the bookkeeper for missing information. The primary keeper of all the documents is you, your spouse, your employees, your suppliers, your bank, your credit card company. The Key work is done by you, or whoever assists you have the power to give information to outsiders about your Construction Company.

Who wants details about your business? Internal Revenue Service State Revenue Agencies State Payroll Agencies Other State Agencies Worker’s Compensation Provider General Liability Insurance Provider

Depending on the report it may be monthly (sales tax, business excise tax, other state business tax reports) Quarterly reports include all payroll related forms to State and Federal (Internal Revenue). Personal story. If you have any data that you can include relating to your list, include that in your introduction, too./>

Some states require Contactors to take a test before receiving Contractors License

Depending on your state a Contractor may have to be licensed which can require a Bond and General Liability Insurance. Because the General Liability Insurance is made up of a group of numbers to make up the coverage and premium, there is usually an annual General Liability Insurance Audit and are date specific based on when the coverage was taken out. Your Construction Company Structure determines how simple or how complicated the annual insurance audit it. We can help you with this. Call Sharie 206-361-3950 or email her sharie@fasteasyaccounting.com

Insurance Audit Questions May Include: Annual sales Owners wages List of employees Employee wages Copies of 941 Quarterly Reports Copies of State Unemployment Reports List of subcontractors Total paid to subcontractor Copies of Subcontractor’s Certificate of Insurance List of names of casual labor Total paid to each casual labor The total amount of Leased or Rented Equipment.

Periodically Your State Unemployment Agency will want details on individual employee’s hours. Form to be filled out is date and period specific and will want the total per week (regular time and overtime) then broken down by day and a weekly total of wages earned, and date wages were paid. In other words; the State Agency is asking for more in more detail to be sure they get the same grand total as other reports and did you pay the proper amount in the time frame required.

Some states and cities have different minimum wage requirements this adds to the tracking required.
In Washington State, we have a state minimum wage, and then several individual cities have an increased minimum wage. In addition to new rules about Family Leave, Sick Leave, and Personal Time Off. Many of these rules are based on the number of employees you have.

Internal Revenue Service Requires You File Annual 1040 Tax Return. Most contractors file their taxes on a calendar year. S-Corps and LLC’s treated as S-Corps annual tax return is due on March 15th with a six-month extension allowed to September 15th.

Numbers From Your Contracting Company Return Move To Your Personal 1040 Tax Return. Personal tax returns with or without Schedule C (additional pages for Sole Prop’s and LLC’s treated as a Sole Prop) are due on April 15th with a six-month extension allowed to October 15th. Reminder the tax return is due in a couple of weeks.

There are many reasons why taxes are not ready for the tax accountant to do the annual taxes. Contractors may feel that they can do it themselves using tax software. My recommendation is to use a Tax Accountant. Laws change all of the time.

Assume that every time Congress meets they have done something. Since the average person is too busy and has no way of knowing what amendments are added to any given bill may impact the tax code having a tax accountant is a cost and time effective solution.

Tax Accountants Are “Generalists.” What do I mean by “Generalist”? To stay in business, tax accountants have more clients than just contractors. Tax Accountants have to keep on top of all the tax changes that impact all of their clients. Reality is, the tax accountant is more concerned about your bottom line and how it impacts the rest of your life and taxes, not your job costing reports.

Does your spouse work, what and where are all the W-2, interest income, dividend income, health insurance, children, your house, mortgage, property taxes and what other misc. Expenses that might be deductible? Many tax accountants send a packet for their clients to fill out and bring with documents.

When a Construction Contractor drops off a box of receipts and bank statements to the tax accountant the Construction Contractor asks:

How am I doing? What about [fill in the blank]? Did I make any money on “xyz job”? Tell me about how to improve my business?

The tax accountant is going to roll their eyes and seems less than helpful or incompetent. They are not! Knowing about the individual details of Construction Accounting and Job Costing is not a normal skillset of the tax accountant. Depending on the size of the pile to manage whether a tax accountant will use Excel and a Workaround to file the Construction Contractor’s taxes or send you to a bookkeeper to do it.

Our focus is on helping you survive and thrive. When we ask you for documents, it is part of our Contractors Bookkeeping Services System. We have a process where we will do a gentle follow-up. Sometimes the greatest most effective follow-up is done by the State Agencies who want specific reports which when they are not filed promptly will incur late fees and penalties or cancellations.

They will call, send certified letters, issue Warrants on Bank Accounts and file Tax Liens all to receive money owed to a government agency. Not someone you want to have your number on speed dial. It is one thing if the over site is lack of money, and another if it is bad paperwork.

Job Costing Is Only Possible when you, the Contractor have put the job name on the receipts, checks and other paperwork directly related to each job. It is unreasonable to expect any bookkeeper to guess which job the costs should be assigned to or interrupt your already busy day with several phone calls to ask for information about a receipt, bill or other paperwork.

One Process In Our Bookkeeping System Is "OHIO" Only Handle It Once

Proactively writing on the receipt, giving the customer name and address in the Purchase Order field at the supplier will make the bookkeeping process easier on everyone and more importantly it will be the foundation to providing you with Job Costing Reports to help you identify the 20% of jobs and customers that generate 80% of your Cash Flow and Profit.

How To Combine The 80/20 Rule With Business Process Management For Your Construction Company The 80-20 Rule Combined With Business Process Management Can Improve Your Life In Ways You Never Dreamed Possible!

20% Of The Construction Companies - Share the Top 80% of the profits which the owners and shareholders use to support lavish lifestyles because they know what to do, when to do it and how to do it!

80% Of The Construction Companies - Share the Bottom 20% of the profits which the owners and shareholders use to support just above or just below average lifestyles because they don't know what to do when to do it or how to do it!

Not every Construction Contractor wants to put in the effort for Job Costing, and that is OK. It is Good, Better and Best in all things including Construction Accounting. With processes, every contractor will get value out of their bookkeeping no matter what level of service they require to fit their needs.

The most basic accounting provides a Profit & Loss Statement and Balance Sheet on demand for their Tax Accountant to file the taxes. Add personal documents, and the Tax Accountant knows what to do.

Basic Construction Bookkeeping is more than hooking up your bank feeds to an Accounting Software and let the software decide what to do with the transactions. All good bookkeeping even for the smallest Construction Contractor is more than balancing your checkbook.

Good Construction Accounting provides answers for Construction Contractors from the Brand New Contractor, Handyman, Trade Contractor, General Contractor. Construction Accountants know what to do when they receive the documents. Of course, you need to talk your prospective Construction Accountant and make sure they know Construction Accounting; then decide if it is a good fit for your needs.

One example in Construction Accounting there is a difference between Spec and Custom Home. General Contractors sometimes get confused on which they are building as both are the construction of a new home. Construction Accountants are never confused as the accounting is different.

In Washington State, it is a huge difference because of the rules about sales tax. When a contractor must charge sales tax on their invoice or if they accept a resale certificate. All retail sales to homeowners and Spec Builders are subject to sales tax.

Years Ago My Mentor Told Me: “Little Leaks Sink A Big Ship"

Four Leaks That Bankrupt Construction Contractors

Not charging and collecting Sales Tax is a 10% leak. Not Charging and collecting for Change Orders could be a bigger leak. Improperly applying payments (where it appears as a credit in QuickBooks) is another leak. With enough leaks, there is no money left for the fun stuff you want to do in your life.

Change is easier when doing one little thing, then another, then another. Trying to change everything all at once is overwhelming. Many times change easier for a smaller company because they are small.

Number one question from smaller contractors is “I am just me, or it is just me, and I only have one or two employees” Am I too small to help and use the services of a Contraction Bookkeeper?

My Answer: A Company of One – is not too small!

The Company of One with Dog and Pickup Truck is not too small. Construction Contractor without any employees is not too small. Construction Contractor with less than five employees is not too small. Construction Contractor with more than 15-20 employees may be too big to not have an in-house admin

From Brand New Contractor, Weekend Warrior, Handyman, Trade Contractor to General Contractor with or without employees we are here to help.

About The Author:

https://www.fasteasyaccounting.com/free-one-hour-consultation-bookkeeping

Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or sharie@fasteasyaccounting.com

I trust this podcast helps you understand that outsourcing your contractor's bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking a holistic approach to your entire construction company and helping support you as a contractor and as a person.

We Remove Contractor's Unique Paperwork Frustrations

We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!

That is all I have for now, and if you have listened to this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.

You Deserve To Be Wealthy Because You Bring Value To Other People's Lives!

I trust this will be of value to you and your feedback is always welcome at www.FastEasyAccounting.com/podcast

This Is One more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that, and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com

Contractor Bookkeeping Done For You!

Thinking About Outsourcing Your Contractors Bookkeeping Services?

Click On The Link Below:

www.FastEasyAccounting.com/hs

This guide will help you learn what to look for in outsourced construction accounting.

Need Help Now?

Call Sharie 206-361-3950

sharie@fasteasyaccounting.com

Thank you very much, and I hope you understand we do care about you and all contractors regardless of whether or not you ever hire our services.
Bye for now until our next episode here on the Contractors Success MAP Podcast.

Enjoy your day.

Sharie

About The Author:

https://www.fasteasyaccounting.com/free-one-hour-consultation-bookkeeping

Our Workflow Removes Your Paperwork Frustrations For Contractors Who Prefer To Do Your Bookkeeping Fast Easy Accounting Do-It-Yourself
Construction Accounting Store Is Open

Most Contractors Setup QuickBooks Desktop Version In One Of Three Ways:

#1 EZ Step Interview inside QuickBooks Setup
#2 Asked Their Tax Accountant To Setup QuickBooks
#3 They Attended A How To Setup QuickBooks Class Or Seminar

And QuickBooks Does Not Work The Way They Want It Too! The Answer: #1 Click Here To Buy An Entire QuickBooks Setup For Your Specific Contracting Company #2 Click Here To Buy Just The Chart Of Accounts For Your Specific Contracting Company

Short List Of Construction Contractors We Serve Asphalt Contractor Asphalt Contractor Brand New Contractor Brand New Contractor Brick And Stone Contractor Brick And Stone Contractor Cabinet Installation Contractor Cabinet Installation Contractor Carpentry Contractor Carpentry Contractor Carpet And Tile Contractor Carpet And Tile Contractor Commercial Tenant Improvement Contractor Commercial Tenant Improvement Contractor Concrete Contractor Concrete Contractor Construction Employees Construction Employees Construction Manager Construction Manager Construction Support Specialist Construction Support Specialist Custom Deck Contractor Custom Deck Contractor Custom Home Builder Custom Home Builder Demolition Contractor Demolition Contractor Drywall Contractor Drywall Contractor Electrical Contractor Electrical Contractor Emerging Contractor Emerging Contractor Excavation Contractor Excavation Contractor Finish Millwork Contractor Finish Millwork Contractor Flipper House Contractor Flipper House Contractor Flooring Contractor Flooring Contractor Foundation Contractor Foundation Contractor Framing Contractor Framing Contractor General Contractor General Contractor Glass Installation Contractor Glass Installation Contractor Gutter Contractor Gutter Contractor Handyman Contractor Handyman Contractor Hot Tub Contractor Hot Tub Contractor HVAC Contractor HVAC Contractor Insulation Contractor Insulation Contractor Interior Designer Contractor Interior Designer Contractor Land Development Contractor Land Development Contractor Landscape Contractor Landscape Contractor Lawn And Yard Maintenance Contractor Lawn And Yard Maintenance Contractor Masonry Contractor Masonry Contractor Mold Remediation Contractor Mold Remediation Contractor Moss Removal Contractor Moss Removal Contractor Painting Contractor Painting Contractor Plaster Contractor Plaster Contractor Plaster And Stucco Contractor Plaster And Stucco Contractor Plumbing Contractor Plumbing Contractor Pressure Washing Contractor Pressure Washing Contractor Remodel Contractor Remodel Contractor Renovation Contractor Renovation Contractor Restoration Contractor Restoration Contractor Roofing Contractor Roofing Contractor Siding Contractor Siding Contractor Spec Home Builder Spec Home Builder Specialty Contractor Specialty Contractor Stone Mason Contractor Stone Mason Contractor Stucco Contractor Stucco Contractor Subcontractor Subcontractor Swimming Pool Contractor Swimming Pool Contractor Swimming Pool And Hot Tub Contractor Swimming Pool And Hot Tub Contractor Tile And Carpet Contractor Tile And Carpet Contractor Trade Contractor Trade Contractor Tree Contractor Tree Contractor Underground Contractor Underground Contractor Utility Contractor Utility Contractor Waterproofing Contractor Waterproofing Contractor Window Contractor Window Contractor Additional QuickBooks Templates, Resources, And Services

QuickBooks Set Up Templates Solopreneur QuickBooks Chart Of Accounts Free Stuff QuickBooks Item Lists Templates Consulting

We Serve Over 100 Types Of Contractors So If Your Type Of Company Is Not Listed Please Do Not Be Concerned Because If You Are A Contractor There Is A Good Chance We Can Help You! Call Now: 206-361-3950

Additional QuickBooks Templates, Resources, And Services

QuickBooks Set Up Templates Solopreneur

QuickBooks Chart Of Accounts Free Stuff

QuickBooks Item Lists Templates Consulting

If you are a blogger, who writes about construction we would like to hear from you. https://www.fasteasyaccounting.com/guestblogger

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