Sign Accounting Contract Online

How to eSign a document: Sign Accounting Contract online

how important is accounting in your business do you own a construction company and wondering if you hire the wrong bookkeeper the only way to start right is to make sure your bookkeeping is set up right first we must understand the difference between construction accounting and regular accounting all accounting uses the same accounting equation the three O's is the contractors accountant Mendel says what you own what you owe and what is left over now every business owner needs three basic report cash profit and equity regular accounting is roughly 80% of all accounting for business in the world and it's concerned with the basic financial reports which are used for preparing annual tax returns and some rudimentary management decisions it is practically all that is taught in schools colleges and universities construction accounting is roughly 15% of all accounting and accounting with manufacturing makes up roughly 5% so it is given very little attention in schools regular accounting is used in fixed environments where customers comes to the place of business or at most to ship or deliver a packaged product in essence you are selling a product or a service from a fixed location Construction accounting is used when the entire place of business is packed up and taken to the customer in essence you are selling assembling delivering and installing a customized product from a mobile shop on location think of it like shooting a movie on location without all the glamour resources and money to go with it regular accounting and construction accounting has these things in common in sales regular accounting usually has one to four categories construction accounting has one to ten categories of products and/or services cost of goods sold if they sell products with one to four categories in construction it has direct and indirect job costs with 100s of categories expenses are overhead required to maintain business operations but it is extremely complex because some expenses used in regular bookkeeping are actually direct and indirect cost of goods sold in construction accounting break-even is fairly easy to calculate in regular accounting because there is a direct relationship between income and expenses on every item it is easy to run reports to determine which items are profitable and make adjustments quickly as needed in construction accounting it is difficult to calculate because most projects are one-of-a-kind custom jobs proactive contractors have systems and cost libraries with pre priced assemblies for bidding which works in conjunction with strategic construction bookkeeping provide management with progress invoicing job costing and job profitability take for example contractor AAS bookkeeper how much money did we make under John and Mary dough house remodel the books per generates a report showing $5,000 profit when in reality it was a $15,000 loss QuickBooks setup was similar to every other accounting business and twenty thousand dollars worth of transactions was put in the wrong category some direct and indirect cost room is allocated and not assigned to the...