Construction Bookkeeping
and Accounting

Construction bookkeeping is one of the most vital parts of the business for many construction companies.

Using specialized construction accounting software, the following bookkeeping services for construction can be delivered:

• Job costing and overhead expenses calculation
• Calculate labor costs
• Determine direct and indirect costs
• Manage payroll and accounts payable
• Generate financial reports
• Manage multiple bank accounts
• Compile business receipts
• Track expenses and revenue
• Cash flow analysis
• Provide management with construction bookkeeping tips

Virtual Construction Assistants is a modern and technologically advanced construction accounting company that is geared towards providing the following benefits to a construction company:

• Streamline the construction business accounting process
• Effective construction accounting services using the latest accounting software and bookkeeping software
• Provide a clear picture of construction job costs, financial records, and business expenses, even over multiple projects
• Assist with payroll management, paying taxes, and all other accurate bookkeeping services for any construction project

Most businesses in the construction industry prefer to use the Percentage-of-completion method (PCM).

At Virtual Construction Assistants, you can get advice on the best option for your financial recordkeeping and professional bookkeeping needs.

Percentage-of-completion method (PCM) has the following benefits:

• Accurate accounting software
• Easy to use
• Evens out incoming payments, income and expenses, and payment of taxes over some time

Construction expense reports are compiled by recording the purchase as an expense on the income or profit and loss statement.

These expense categories have a direct impact on the overall project cost evaluation, so it is important to do them correctly.

If you are not 100% sure that you can do this properly, you should hire experts to assist you.

Virtual Construction Assistants have a lot of experience working with a wide range of contractors in the construction industry.

No matter the size of your project, construction expenses will always be a major part of it, which is why you need the construction bookkeeping tips that Virtual Construction Assistants can provide for you.

The main activities of bookkeeping services, applicable to construction businesses and small business owners alike, are:

1. Analyzing and assigning financial transactions to their relevant accounts
2. Creating separate bookkeeping journals that credit and debit specific accounts
3. Making appropriate entries to construction ledger accounts and balance sheets
4. Adjusting all entries upon completion of each accounting period

Yes, when conducting bookkeeping for construction, QuickBooks is very effective, efficient, and easy-to-use financial systems software that is used by many contractors in the construction industry.

It is useful when calculating overall project costs as it prevents any job costs from being missed.

Its unique ability when it comes to tracking costs, client details, and timelines of projects is what makes QuickBooks so popular among contractors.

The fees that can be charged by bookkeepers depend on their level of experience and the nature of the job that is required.

If a bookkeeper is expected to handle all the bookkeeping duties, plus additional accounting jobs as well, they will be able to charge around $22 per hour.

However, very experienced bookkeepers can charge as much as $500 per hour, or more, for doing the books of large construction businesses.

QuickBooks and CMiC are the most popular construction accounting software options used by many contractors.

However, there is a long list of available options and each has it’s own advantages and disadvantages that you need to be aware of.

Your choice of financial management software will depend on the scope of your construction projects, the size of your company, whether you are covering single or multiple locations, your budget, and your accounting/bookkeeping goals.

Yes, it is impossible for a modern-day construction project to be run without proper accounting and bookkeeping services.

Not only will the construction work suffer from delays and poor planning, but serious issues can arise, such as insufficient tax preparation, which could derail the entire business.

This is why many construction companies have full-time bookkeepers on their payroll.

A small business that cannot afford this should consider outsourcing its bookkeeping, accounting, and financial management to third parties, such as Virtual Construction Assistants.

The fees charged by Virtual Construction Assistants are nothing compared to the risk of making serious mistakes when dealing with, for example, accounts receivable, material purchases, cash flow analysis, and overhead costs calculations.

Some of the essential services provided by bookkeeping services providers, such as Virtual Construction Assistants, are:

• General bookkeeping
• Data input
• Job costing and profitability analysis
• Bills payment
• Invoice management
• Bank and credit card reconciliations
• Financial statement drafting
• Billing and invoicing

Your choice of construction bookkeeper is very important if you wish to keep your construction company on the right track.

This is why you have to carefully select who you are going to leave in charge of your construction bookkeeping. Consider bookkeepers with:

• Experience working with many other businesses in similar roles
• In-depth knowledge of the latest construction accounting software
• The ability to handle construction projects of any size and scope
• A track record of integrity, professionalism, and efficiency
• Affordable fee structure

There is one company in the city of New York that meets all these requirements, and that is Virtual Construction Assistants. Call them now and schedule a meeting with one of our expert bookkeepers to discuss your construction accounting requirements.