construction bookkeeper

How an Incompetent Construction Bookkeeper Can Ruin Your Business

Bookkeeping is one of the most vital tasks for your construction business. Aside from keeping you in compliance with IRS requirements, accurate and up-to-date accounting helps you analyze your budget, monitor your cash flow, and identify opportunities to grow your business. It also quickly flags mistakes, ensuring you’re not overpaying invoices or missing bill payments. With all your financial documents well-controlled and centralized, you will not have to scramble to find the information you need. The key to a solid financial foundation relies heavily on the bookkeeper you choose. If they are not an experienced construction bookkeeper, you could jeopardize your construction business.

Poor Record-Keeping Invites Major Problems

When you think about all the ways your bookkeeper benefits your business, instead of viewing them as an expense, consider them as an investment. They do more than tally up invoices and file receipts. They provide the reporting you need to make informed decisions and keep your company in good standing with other businesses and lenders.

By taking your construction bookkeeping seriously, you ensure that:

Your earnings are accurately represented, preventing problems with under-reporting. 

Failing to account for earnings not only warrants IRS scrutiny but can also put you at a disadvantage with lenders who undervalue your creditworthiness.

Your reports are accurate, and your taxes are appropriately minimized. 

Legitimate deductions help your bottom line, but inaccurate books can miss crucial savings, or worse, can claim things you are not entitled to, again creating problems with the IRS.

You are better situated in the event of an audit. 

Should the IRS become interested in your finances, solid bookkeeping practices ensure you can back up your tax filings. While it may still be stressful, there will be strong documentation and fast answers to any questions they may have.

A True Construction Bookkeeper Is the Best Option

When searching for a construction bookkeeper, it is a common trap to search for the most inexpensive option. Unfortunately, this means your bookkeeper will often be a “jack of all trades” or someone inexperienced in the construction industry. When your bookkeeper does not understand the nuances of your industry, it can lead to costly mistakes for your company. 

For the most accurate bookkeeping experience, it is best to turn to a firm that includes a construction bookkeeper. Working Numbers understands your business and focuses on providing exceptional service to the construction industry. Call us today to discuss how you can achieve your business goals with our specialized construction bookkeeping services.

Instantly Get Tips For Tax Season

Sign Up For Updates And Special Offers!