Running a successful construction business is no small feat. And central to growing your business is ensuring you have accurate bookkeeping and accounting. But, who has time to spend hours every week tracking expenses?
From managing your financial records to organizing business expenses to tracking accurate costs, a virtual assistant can ensure your bookkeeping and accounting are not only accurate but keep you on track to meet your business goals.
At Virtual Construction Assistants, we are dedicated to helping construction companies find the best virtual talent to help across bookkeeping and accounting services. Here are some helpful construction bookkeeping tips to help you find the best-qualified virtual construction assistant for construction companies.
Why Bookkeeping in the Construction Industry is Complicated
As construction business owners know, the construction industry is quite different from other businesses when it comes to financing and accounting. Due to its complexity, direct and indirect costs and wide range of construction contracts that most businesses manage.
Because of this, finding the right bookkeeping for construction business is crucial to track business expenses and ensure accurate bookkeeping across your accounts.
We help find virtual assistants that can complete these unique construction bookkeeping tasks like managing job costing, billing customers on a percentage-of-completion basis, and dealing with overhead costs. In addition, construction businesses need to track material costs, recognize revenue, generate financial reports, and more.
Running a successful construction company requires a construction-specific solution for bookkeeping for construction business
Basic Parts of Bookkeeping for Construction Companies
When finding the best virtual construction assistant for your construction company, the first step is clearly understanding what kind of help or support you might need. Our team can help you write a job description that outlines exactly what you are looking for in a virtual assistant for bookkeeping services.
A few of the basic parts of the role usually include:
- Managing financial records: Keeping detailed and accurate records of job costs, company costs, contracts, and tax preparation.
- Payroll management: Ensuring employees are paid on time and attendance is crucial for calculating labor costs, payroll, and job costing.
- Cash flow management: This ensures all business expenses are tracked and reflected in bookkeeping records.
- Accounts receivable and accounts payable: A virtual bookkeeper can ensure you are tracking the ins and outs of your accounting with a bookkeeping software or accounting software.
Of course, these are just a few things you can get assistance with when hiring bookkeeping for construction business. If you are curious about what other tasks and responsibilities you can get support with, reach out and learn how we have helped other successful construction companies get the administrative help they need.
Different Accounting Methods for Construction Businesses
When it comes to picking the right revenue recognition methods for your construction business, there are a few things to keep in mind and consider. The choice should largely be dictated by your company’s size and the type of bookkeeping services you have.
The two most common methods of construction bookkeeping and revenue recognition include:
Completed Contract method
This approach is popular with small to midsize construction businesses and allows you to recognize revenue only when the contract is fully completed. This means that even if you are halfway through the project. Also, you have incurred significant other overhead expenses or project costs. You will only record profits once the project is entirely finished.
Percentage of Completion Method
Unlike the completed contract method, the percentage of completion method allows businesses to track expenses and revenue proportionally based on the percentage of project completion. As the work progresses on a project, contract revenue recognition and costs correlate to the completed percentage.
Evaluating which type of accounting method is right for you can be helpful as you look for a virtual construction assistant who will manage your bank account and track expenses and revenue.
Benefits of a Virtual Assistant Focused on Construction Bookkeeping
Are you on the fence about hiring a virtual assistant for your construction company? Virtual Construction Assistants has been helping clients find valuable and reliable administrative support for bookkeeping and accounting needs.
When you hire a virtual assistant to assist with your construction projects, you will get:
Accurate and up-to-date records
Organizing and maintaining accurate financial records enables you to make informed decisions. This helps grow your business without the need to spend tedious time and energy handling it yourself.
Increased efficiency
By having a support role dedicated to construction bookkeeping, your team can stay on track and free up time for strategic projects.
Fewer accounting errors
Adding a virtual assistant is a great way to level up your construction projects. You can ensure a qualified accounting team member is managing your financial records.
Better cash flow management
Real-time tracking of your business expenses and overhead costs with the help of a virtual assistant. You can ensure you have a clear picture of your company’s financial trends and expense categories.
Save money on employee costs
When you hire a virtual employee, you can save money since you will only pay for the services you need. This can help you save money on benefits and office space while still ensuring you get the accounting support you need.
Take your construction company to the next level
Many construction companies are not sure where to start when it comes to the financial management of multiple projects and multiple bank accounts. From finding the right construction accounting software to construction accounting 101. A dedicated virtual construction assistant can help your small business grow.
Call Virtual Construction Assistants today
Construction firms nationwide have trusted Virtual Construction Assistants to find the best virtual support to improve their construction accounting. If you are ready to see how we can help you get the most effective construction bookkeeping support, give us a call. We are here to help you grow your business!
