Is your construction company struggling to keep up with your construction bookkeeping administrative tasks? Any construction business owner knows that bookkeeping is crucial for your industry since it gives you the insights you need to track your project costs, manage cash flow, and prepare accurate financial statements.
At Virtual Construction Assistants, we help construction companies get the virtual administrative support they need to level up their bookkeeping and financial management, ensuring they have the right information at the right time.
If you are thinking of hiring a virtual office administrator for your construction company, our team can help. Keep reading to learn about the role and how it can help you run a successful construction business.
Understanding the Role of a Virtual Assistant in Construction Bookkeeping
Not sure what kind of construction bookkeeping tips and accounting services a virtual assistant can help with? A virtual construction assistant can help with your construction bookkeeping in countless ways, including
Managing financial records and generating financial reports
One of the primary tasks of a virtual construction bookkeeping assistant is to help track all your business expenses across multiple bank accounts. From recording sales, receipts, purchases, and payments, you can ensure accurate bookkeeping reflected in your various financial reports.
Accounts payable and accounts receivable management
A virtual administrative assistant can separate business bank accounts to ensure your bills get paid and your accounts receivables are updated and accurate with customer payments. When both of these functions are tracked properly, you can have a better picture of how much money you have in your bank account.
Reconciling business bank account statements
It is important for any business to confirm that its records align with the bank’s records. A construction bookkeeping solution or virtual assistant can regularly confirm the transactions in your accounting software with those in your bank statements.
Preparing financial statements
From creating balance sheets that give a snapshot of the company’s financial standing to profit and loss statements that highlight the company’s revenues and expenses, a bookkeeping VA can ensure that you can track business expenses and that financial records are accurate and up-to-date.
Payroll management
A virtual assistant for the construction industry can manage your payroll process completely and make sure all your employees are paid on time and accurately. From approving PTO, and tracking labor costs to adjusting any benefits or deductions, this type of payroll management can be extremely helpful for a small business.
Tax compliance
A virtual assistant can also assist with tax preparation and compliance. They can organize and file the required documents for tax filing and make sure that your construction company meets all its tax obligations within the required timeline.
The two methods of construction bookkeeping
If you are searching for a bookkeeping solution for your construction business, it is helpful to look for a virtual assistant who has experience in the two most commonly used bookkeeping methods for construction businesses – the completed contract method and the percentage of completion of construction contracts method.
Completed Contract Method
The Completed Contract Method is an accounting approach that recognizes the revenues, indirect costs, and expenses related to a construction project only after the project has been fully completed. This method is ideal for small construction companies or projects that have a high level of uncertainty.
Keep in mind this method may not provide the most accurate representation of your company’s financial health during the construction phase. That is why it is not recommended for larger construction companies since it may not show their progress, job costs or profitability during the project.
Percentage of Completion Method
The Percentage of Completion Method is a technique used to recognize revenue, expenses, and profit margins as a proportion to the overall progress of a construction project.
Large-scale construction companies commonly use this method of revenue recognition as it provides a more accurate calculation of their revenue during the actual construction projects. To use this method, project managers must estimate the overall percentage of completion using costs incurred, labor hours, or material quantities in relation to the project’s overall scope.
The biggest benefit of the Percentage of Completion Method is that it gives you a simple way to understand revenues, overhead costs and expenses as the project continues, which can help track efficiency and job costing.
How to find the right virtual assistant for your construction business
Ready to hire a virtual assistant for your construction business? Virtual Construction Assistants can help! Finding the right virtual assistant can be easier said than done, though, especially if you are looking for someone with construction accounting and construction bookkeeping experience.
Our team at Virtual Construction Assistants has helped many construction companies find the best virtual assistant for them through our in-depth hiring process.
Interviewing and Selecting a Virtual Assistant
Oftentimes, the interview process is the most time-consuming for executives in the construction industry. We can help by reviewing candidates’ resumes and portfolios and helping to find the most qualified for the position.
We will then screen all the candidates and present you with the top two best options for your position. You will get a chance to interview them directly and ask the important questions on your mind, like their experience with bookkeeping software or previous experience in a similar role in the construction industry.
Onboarding and Training Your Virtual Assistant
Our support does not end when you have found the best candidate. We will also help you onboard and train your virtual assistant to set them up for success.
A smooth onboarding process is essential for effective collaboration. We will ensure your virtual assistant has access to your accounting software, financial records, and company policies to set them up for success.
Construction companies can benefit from our virtual construction assistant services!
Hiring a Virtual Assistant to take care of your bookkeeping tasks can free up your time and energy to focus on other important aspects of your business! If you are ready to hire a virtual office administrator for your construction business, give our team a call. We will help you find the best virtual assistant available.
