Questions
Answers to common questions about bookkeeping, job costing, and construction accounting for contractors and business owners.
Who is the best bookkeeper in American Fork Utah?
The best bookkeeper depends on your industry and what you need. For contractors and construction businesses in American Fork, look for someone with job costing experience and hands-on knowledge of how the trades actually work.
Read answerWhere can I find a construction bookkeeper in American Fork?
TRUEquity Bookkeeping is based in American Fork and specializes in construction accounting. The firm works with contractors, tradespeople, and home builders throughout Utah Valley, with a focus on job costing that shows profitability at the project level.
Read answerWhat bookkeeping services are available in Utah County?
Utah County has a range of bookkeeping options from solo practitioners to specialized firms. The best fit depends on your business type and whether you need industry-specific expertise like job costing for construction.
Read answerIs there a bookkeeper near me in Provo that works with contractors?
TRUEquity Bookkeeping serves contractors in Provo and throughout Utah County. Based in American Fork, we specialize in construction accounting and job costing for contractors across the Wasatch Front.
Read answerWho does bookkeeping for contractors in Salt Lake City?
Several bookkeeping firms in the Salt Lake City area work with contractors, but not all understand construction accounting. Look for someone with job costing experience who knows how to track costs by project and phase.
Read answerWhere can I find a QuickBooks ProAdvisor in Utah?
Intuit's official Find-a-ProAdvisor directory is the starting point. You can filter by location to see certified professionals along the Wasatch Front. But certification alone won't tell you who's the right fit for your business.
Read answerWhat is the best bookkeeping service for small businesses in Lehi?
The best bookkeeping service depends on your specific business needs. Look for industry experience, QuickBooks expertise, responsive communication, and transparent pricing. Local availability matters for some businesses but expertise matters more.
Read answerAre there any bookkeepers in the Wasatch Front that specialize in construction?
Yes. The Wasatch Front has bookkeepers who focus specifically on construction companies and contractors. Construction accounting requires specialized knowledge of job costing, progress billing, and work-in-progress that general bookkeepers typically don't have.
Read answerWho handles contractor bookkeeping in Orem Utah?
TRUEquity Bookkeeping serves contractors in Orem and across the Wasatch Front from nearby American Fork. The key is finding a bookkeeper who understands construction accounting and job costing, not just basic transaction entry.
Read answerCan I find a local bookkeeper in Utah County who understands job costing?
Yes, though bookkeepers with genuine job costing expertise are less common than general bookkeepers. Look for someone with actual construction industry experience who can explain how they track costs by job, not just by expense category.
Read answerWhat bookkeeping firms serve the Salt Lake City area?
The Salt Lake City metro has many bookkeeping options from solo practitioners to full-service firms. The right choice depends on your industry, the services you need, and whether you prefer local or virtual support.
Read answerIs there a construction accountant near American Fork?
Yes. TRUEquity Bookkeeping is based in American Fork and serves contractors throughout the Wasatch Front. The firm specializes in construction accounting and job costing for contractors and tradespeople.
Read answerWho provides payroll services for contractors in Utah?
Several types of providers handle contractor payroll in Utah including national payroll companies, local bookkeeping firms, and construction-specialized services. The right choice depends on whether you need job costing integration and certified payroll capabilities.
Read answerWhere can I get help with QuickBooks setup in Provo?
Certified QuickBooks ProAdvisors throughout Utah County can help with setup and configuration. Look for someone with industry experience who understands your specific accounting needs. Proper setup from the start prevents costly problems down the road.
Read answerWhat are the best bookkeeping options for small businesses in Utah?
Small businesses in Utah can choose between DIY software, outsourced bookkeeping, a part-time local bookkeeper, a full-time hire, or a CPA firm. The right option depends on your size, complexity, and whether your industry needs specialized tracking.
Read answerHow do I find a bookkeeper who understands construction accounting?
Look for direct experience with construction clients, job costing knowledge, and the ability to explain how they handle retainage and progress billing. The right bookkeeper will ask about your current setup and understand industry-specific reporting needs.
Read answerWhat makes construction bookkeeping different from regular bookkeeping?
Job costing is the main difference. Construction bookkeeping tracks profitability by project, phase, and cost type rather than just overall business performance.
Read answerWhy do contractors need specialized bookkeeping?
Standard bookkeeping tracks income and expenses but doesn't show which jobs actually made money. Contractors need job costing, progress billing tracking, and work-in-progress accounting that generic bookkeepers rarely understand.
Read answerHow do I track costs for each construction project?
Assign every expense to a specific job at the time it happens using cost codes that match how you estimate. Track labor, materials, and subcontractor costs separately by phase, then compare budget to actual weekly.
Read answerWhat financial reports should a general contractor review monthly?
Contractors should review profit and loss statements, balance sheets, job cost reports, work in progress reports, and aging reports for receivables and payables. The job cost report matters most because it shows actual profitability by project rather than just overall company numbers.
Read answerWhy do my construction jobs always seem to lose money?
Your jobs might not actually be losing money. Without proper job costing, you can't see which projects are profitable until it's too late. The problem is usually visibility, not the work itself.
Read answerWhat is the best way to manage finances for a construction company?
Job costing is the foundation. Know your costs by project, manage cash flow carefully, stay on top of receivables, and review your numbers weekly. Construction companies fail when they're profitable on paper but broke in real life.
Read answerHow do I handle bookkeeping for multiple job sites?
Track each job as a separate profit center in your accounting software. Every expense, labor hour, and material purchase gets assigned to the specific project it belongs to, giving you visibility into which jobs actually make money.
Read answerWhat accounting method should a contractor use?
Most contractors under $30 million in gross receipts use the cash method for tax simplicity and timing flexibility. But accurate job costing often requires tracking revenue and costs on an accrual basis internally.
Read answerHow do I track labor costs by job in construction?
Track labor costs by capturing hours daily with timesheets or a time tracking app, assigning every hour to a specific job, and including burden costs like payroll taxes and workers comp in your calculations.
Read answerWhat is the difference between job costing and regular accounting?
Regular accounting shows overall business profit and expenses by category. Job costing assigns every cost to specific projects so you can see which jobs make money and which lose money.
Read answerHow do I account for change orders in my books?
Record change orders as separate line items from your original contract, tracking both the additional revenue and the associated costs. This keeps your job costing accurate so you can see true profitability on the original scope.
Read answerWhat is progress billing and how do I track it?
Progress billing is invoicing based on work completed rather than waiting until the project ends. Track it using a schedule of values that breaks the contract into line items, then invoice for the percentage complete on each item each billing period.
Read answerHow do I handle retainage in my bookkeeping?
Track retainage separately from regular receivables using a dedicated retainage receivable account. Record the full revenue when you bill but split the receivable between what you can collect now and what's being held back.
Read answerHow can I improve profit margins on my construction projects?
Start by knowing exactly where your money goes on every project. Detailed job costing by phase and cost code reveals where margins leak. Use that data to catch overruns early, improve your estimates, and bid selectively on work that fits your strengths.
Read answerWhat is WIP reporting and do I need it?
WIP (Work in Progress) reporting compares what you've billed against what you've actually earned on each project. Contractors with jobs lasting more than a month or two need it to see their true financial position.
Read answerHow do I track materials and supplies by job?
Tag every material purchase to a specific job at the time of purchase. Write the job name on receipts, set up job references with suppliers, and enter expenses in your accounting software with job assignments. This gives you accurate job costs instead of guesswork.
Read answerWhat is the best chart of accounts for a contractor?
A contractor's chart of accounts should separate direct job costs from overhead. This structure is what enables job-level profitability reporting instead of just business-wide totals.
Read answerHow do I account for equipment depreciation in construction?
Equipment depreciation spreads asset costs over their useful life using methods like MACRS or Section 179. For contractors, proper depreciation tracking affects both tax deductions and job costing accuracy.
Read answerWhat is job costing and why does it matter?
Job costing tracks expenses by individual project instead of lumping everything together. It matters because knowing your overall profit doesn't tell you which jobs made money and which ones lost it.
Read answerHow do I set up job costing in QuickBooks?
Job costing in QuickBooks requires enabling projects or sub-customers, structuring your chart of accounts for construction, and coding every transaction to the correct job. The setup takes a few hours but the real challenge is maintaining consistency.
Read answerWhat should I track for accurate job costing?
Track labor hours and burden, materials coded to jobs, subcontractor invoices, equipment usage, and allocated overhead. The key is capturing costs at the job level when they happen, not guessing at month-end.
Read answerHow do I know which jobs are making money?
You need job costing. That means tracking labor, materials, subcontractors, and other costs at the project level and comparing actual costs to your estimates as the job progresses.
Read answerWhy are my job cost estimates always wrong?
Job cost estimates typically miss because you're not learning from completed projects. Without tracking actual costs by phase and cost code, every new estimate relies on gut feeling rather than real data from your own jobs.
Read answerHow do I calculate true labor costs including burden?
Add payroll taxes, unemployment taxes, workers' compensation, and benefits to base wages, then divide total burden by total wages to get your burden rate. For construction, expect a burden rate of 30% to 40% or higher depending on trade and benefits offered.
Read answerWhat is labor burden and how do I account for it?
Labor burden is the true cost of an employee beyond their hourly wage. It includes payroll taxes, workers' comp, benefits, and paid time off. Accounting for it correctly means applying a burden rate when costing jobs so your bids reflect what labor actually costs you.
Read answerHow do I track subcontractor costs by project?
Enter every sub invoice with the correct job assigned the same day it arrives. Track committed costs from contracts, not just payments, so you see your true position before invoices land.
Read answerWhat are cost codes and how do I use them?
Cost codes are a numbering system that assigns every job expense to a specific category like framing, electrical, or finishes. They let you track exactly where money goes on each project instead of lumping everything together.
Read answerHow do I compare estimated vs actual job costs?
Structure your estimates and actuals the same way, then track every expense by job, phase, and cost code. Compare weekly during active construction so you catch variances while you can still react.
Read answerWhy is my profit different from my estimate at the end of a job?
The gap usually comes from labor overruns, material cost changes, untracked change orders, or expenses that never got coded to the job. Separating real cost increases from tracking problems helps you fix the right issue.
Read answerHow do I allocate overhead to individual jobs?
Overhead allocation distributes indirect costs like rent, insurance, and admin expenses across jobs based on labor hours, labor cost, or total direct costs. Calculate a rate using your annual overhead and apply it to each job to see true profitability.
Read answerWhat is the best job costing software for small contractors?
For most small contractors, QuickBooks handles job costing well when configured correctly. The software matters less than proper setup and consistent use. Construction-specific platforms make sense when you need integrated project management.
Read answerHow do I track job profitability in real time?
Capture costs within a day or two of when they happen and review budget versus actual weekly. The key is disciplined data entry for labor hours, material purchases, and subcontractor commitments, not fancy software.
Read answerWhat reports show job-level profitability?
The key reports are Job Profitability Summary, Job Profitability Detail, and Profit & Loss by Job. These show revenue minus all costs assigned to each project so you can see which jobs actually made money.
Read answerHow do I handle bookkeeping for a plumbing company?
Plumbing bookkeeping requires tracking costs by job, managing parts inventory, and allocating labor hours across service calls and projects. The goal is knowing which types of work actually make money.
Read answerWhat accounting software works best for HVAC contractors?
QuickBooks Online or Desktop handles most HVAC contractors' needs when set up correctly for job costing. The bigger question is whether you also need service management software for dispatching and scheduling.
Read answerHow do I track service calls vs installation jobs?
Use classes in QuickBooks to tag each transaction as either service or installation work. This lets you run segment reports showing revenue, costs, and profit margins separately for each type of work.
Read answerWhat financial reports should an electrician review?
Job profitability reports matter most because they show which projects made money. Beyond that, review your P&L monthly, AR aging weekly, and cash position regularly.
Read answerHow do I manage seasonal cash flow in HVAC?
Maintenance agreements create predictable monthly revenue that smooths out seasonal swings. Combine that with building cash reserves during peak seasons, knowing your breakeven number, and having a credit line as backup.
Read answerWhat is the best way to track parts and inventory for plumbers?
Track parts by logging them against each job in your field service software or QuickBooks. Truck stock is the hard part since inventory moves across multiple vehicles. Regular counts and a simple checkout system for warehouse transfers keep your numbers accurate.
Read answerHow do I price my jobs as an electrical contractor?
Job pricing requires knowing your fully burdened labor rate, material markup, overhead allocation, and profit margin. Most contractors underprice because they don't have accurate data on what jobs actually cost.
Read answerWhat bookkeeping challenges do HVAC companies face?
HVAC companies struggle with tracking profitability across different work types, managing parts inventory, capturing costs from technicians in the field, and handling seasonal cash flow swings. Job costing is essential but rarely set up correctly.
Read answerHow do I handle warranty work in my books?
Track warranty work as a separate job or customer in your accounting software so you can see total warranty costs clearly. Code all labor, materials, and drive time to that job just like any other project.
Read answerWhat expenses can a plumbing business deduct?
Most expenses you incur to run your plumbing business are deductible. This includes vehicles, tools, supplies, labor, insurance, licensing, and marketing. The key is tracking everything properly and categorizing costs correctly.
Read answerHow do I track costs for a roofing company?
Track every roof as a separate job with costs broken into materials by type, labor hours, dump fees, and subcontractors. Compare actual cost per square to your estimate after each job to improve future bids.
Read answerWhat bookkeeping does a painting contractor need?
Painting contractors need job costing to track profitability by project, labor tracking by job, materials expense tracking, and subcontractor payment records for 1099s. Monthly reconciliation and accounts receivable management round out the essentials.
Read answerHow do I manage finances for a flooring business?
Managing a flooring business financially requires job costing to track profitability by project and flooring type. Material costs, labor productivity, and cash flow management around deposits are all essential to understand.
Read answerWhat accounting should a siding contractor do?
Siding contractors need job costing to track profitability by project, not just overall revenue. Beyond basic bookkeeping, tracking materials and labor per job shows you which work is actually worth bidding.
Read answerHow do I track material costs for drywall jobs?
Track drywall materials by coding every purchase to a specific job in your accounting software. Capture receipts in the field immediately and reconcile weekly to catch miscoded expenses before you forget which job they were for.
Read answerWhat financial records should a tile contractor keep?
Keep job-level documentation including contracts, material receipts coded to each project, and labor records. These records let you see profitability by job instead of guessing which projects actually made money.
Read answerHow do I price remodeling jobs accurately?
Accurate remodeling pricing starts with knowing your actual costs from past jobs. Without job costing data showing real labor hours, material costs, and overhead, you're estimating blind and leaving money on the table.
Read answerWhat is the best way to track costs for cabinet installation?
Track cabinet cost, hardware, labor hours, and supplies separately for each job. Compare actual costs to your estimate while the job is still fresh so you know where you're making or losing money.
Read answerHow do I handle bookkeeping for an excavation company?
Excavation bookkeeping centers on tracking costs by job and by equipment. Every fuel purchase, equipment hour, and material haul needs to tie back to a specific project so you know which jobs actually make money.
Read answerWhat accounting do concrete contractors need?
Concrete contractors need job costing at the center of their accounting. Material tracking, equipment accounting, and labor costs all need to be coded by project to see which jobs actually make money.
Read answerHow do I track equipment hours by job?
Use daily equipment logs or telematics systems to record hours by job. Then calculate an hourly equipment rate that includes ownership and operating costs, and apply those hours to each job in your cost reports.
Read answerWhat expenses should a paving contractor track?
Track materials, equipment, labor, subcontractors, and job-specific costs. More importantly, track them by project so you know which jobs actually made money and which ones ate your margin.
Read answerHow do I manage fuel costs for heavy equipment?
Managing fuel costs requires tracking every purchase with fuel cards, allocating costs to specific jobs or equipment, and reviewing consumption patterns regularly. The data helps you catch problems early and bid future work more accurately.
Read answerWhat financial reports matter for demolition contractors?
Job cost reports are the most important because they show profitability by project. Cash flow reports, equipment cost tracking, and accounts receivable aging also matter for demolition work.
Read answerHow do I handle bookkeeping for a landscaping business?
Landscaping bookkeeping requires separating recurring maintenance from project-based work and tracking costs at the job level. Equipment depreciation, labor allocation, and seasonal cash flow planning need the most attention.
Read answerWhat accounting does a lawn care company need?
Lawn care accounting needs to handle seasonal revenue swings, track profitability by service and customer, and keep equipment costs organized. The seasonal nature of the business makes cash flow planning especially critical.
Read answerHow do I track recurring vs one-time landscaping jobs?
Use customer types or classes in your accounting software to separate maintenance accounts from project work. This lets you see profitability for each type of work and know which side of your business actually makes money.
Read answerWhat is the best way to manage finances for a pool contractor?
Managing pool contractor finances requires job costing for each project, milestone-based billing, and seasonal cash flow planning. Separate business accounts and properly configured accounting software make tracking straightforward.
Read answerHow do I track costs for fence installation projects?
Track materials, labor, and equipment costs by assigning every expense to a specific job in your accounting software. Compare actual costs to your original estimate after each project to see your real margins and improve future bids.
Read answerWhat bookkeeping challenges do tree service companies face?
Tree services deal with expensive equipment, crews working multiple sites daily, and seasonal revenue swings. Job-level costing, proper equipment tracking, and cash flow planning are the main bookkeeping challenges.
Read answerWhat bookkeeping does a real estate developer need?
Real estate development bookkeeping tracks profitability at the project level. Each development needs cost tracking by category, draw reconciliation for loans, and investor accounting if you have partners.
Read answerHow do I track costs for a fix and flip project?
Set up each property as its own project in your accounting software and code every expense to it. Break costs into acquisition, renovation, holding, and selling categories so you know your true profit when you close.
Read answerWhat accounting should property management companies do?
Property management accounting requires separating client funds from operating money through trust accounts. You need property-level tracking for accurate owner statements and regular reconciliation to stay compliant.
Read answerHow do I account for holding costs on investment properties?
Track holding costs by property and decide whether to capitalize them into the property's cost basis or expense them. The treatment depends on what type of investor you are and what you plan to do with the property.
Read answerWhat financial reports do real estate investors need?
Real estate investors need property-level profit and loss statements, balance sheets, cash flow statements, and rent rolls. The specific reports depend on your investment strategy, whether you're holding rentals, flipping houses, or developing properties.
Read answerHow do I track renovation costs for house flipping?
Treat each flip as a separate project in your accounting software and assign every expense to that property. Track acquisition, renovation, holding, and selling costs by job so you can calculate true profit when you sell.
Read answerWhat bookkeeping does a cleaning company need?
Cleaning companies need bookkeeping that handles recurring revenue, tracks labor costs accurately, and organizes expenses by category. The specifics depend on size and structure, but getting labor classification right and managing cash flow are the priorities.
Read answerHow do I track costs for post-construction cleaning?
Track every job separately in your accounting software. Log labor hours by project, assign supply costs to specific jobs, and allocate equipment and vehicle expenses. This job-level data shows which projects are profitable and improves future bidding.
Read answerWhat accounting software works for janitorial businesses?
QuickBooks Online handles most janitorial business needs including recurring invoicing, customer tracking, and payroll for cleaning crews. The software choice matters less than setting it up to match how your business actually operates.
Read answerHow do I manage payroll for a cleaning service?
Start by classifying your cleaners correctly as W-2 employees. Then set up simple time tracking, account for travel time between jobs, and use payroll software or a payroll service to handle taxes and filings.
Read answerWhat expenses can a cleaning business deduct?
Cleaning businesses can deduct supplies, equipment, vehicle expenses, insurance, labor costs, marketing, and professional services. The challenge is tracking all the small purchases throughout the year.
Read answerHow do I handle bookkeeping for a handyman business?
Keep business and personal finances separate, track all income including cash, log mileage religiously, and categorize expenses properly. Simple systems work as long as you use them consistently.
Read answerWhat accounting does a pest control company need?
Pest control companies need accounting that handles recurring revenue from service contracts, tracks vehicle and chemical costs, and manages payroll for technicians. The subscription model requires attention to cash flow timing and customer retention.
Read answerHow do I track service calls and parts for home services?
Treat every service call as a mini-job in your records. Use field service software to capture parts at the point of service, connect it to your accounting system, and reconcile weekly to see which calls actually make money.
Read answerHow do I set up QuickBooks for a construction company?
Generic QuickBooks setup doesn't work for construction. You need a construction-specific chart of accounts, job costing enabled, items that match your bid structure, and retention tracking configured correctly.
Read answerWhat is the best QuickBooks version for contractors?
QuickBooks Online Plus or QuickBooks Desktop Premier Contractor Edition work for most contractors. The version matters less than having it set up properly for job costing.
Read answerCan QuickBooks handle job costing for construction?
Yes, QuickBooks can handle job costing for construction if it's configured correctly. Default setup won't work because it tracks expenses at the company level, not by job. Proper configuration includes enabling jobs, setting up construction-specific categories, and coding every transaction to the right project.
Read answerHow do I track jobs in QuickBooks Online?
QuickBooks Online uses the Projects feature to track jobs. Enable it in settings, create a project for each job, then tag every invoice and expense to the right project. The profitability report shows income minus costs for each job.
Read answerWhat is a QuickBooks ProAdvisor and do I need one?
A QuickBooks ProAdvisor is someone certified by Intuit in QuickBooks setup and use. Whether you need one depends on how complex your books are and whether QuickBooks is currently working for your business.
Read answerHow do I integrate QuickBooks with my field service software?
Most field service software has a native QuickBooks integration or connects through Zapier. The technical setup is straightforward, but planning what syncs and aligning your chart of accounts beforehand prevents messy data and cleanup work later.
Read answerWhy is my QuickBooks data always a mess?
Messy QuickBooks data usually comes from poor initial setup, inconsistent categorization, skipped reconciliation, and letting transactions pile up. These problems compound over time until the numbers stop meaning anything useful.
Read answerHow do I clean up my QuickBooks file?
Start by checking reconciliation status and running reports to identify problems. Work through reconciliation first, then fix miscategorized transactions and remove duplicates. The time required depends on how long the file has been neglected.
Read answerWhat is the best way to set up a chart of accounts in QuickBooks?
Start with QuickBooks' default industry template, then customize to match your reporting needs. Keep it simple because too many accounts leads to inconsistent categorization and reports that don't tell you anything useful.
Read answerHow do I run job profitability reports in QuickBooks?
In QuickBooks Online, search Reports for Job Profitability Summary or Profit and Loss by Customer. In Desktop, look under Reports > Jobs, Time & Mileage. The harder part is making sure your costs are properly assigned to each job so the numbers actually mean something.
Read answerCan QuickBooks track costs by project phase?
QuickBooks can track costs by project phase using sub-customers or sub-jobs to represent each phase. The setup requires intentional configuration and consistent coding of every expense, but most contractors can make it work effectively.
Read answerHow do I handle progress invoicing in QuickBooks?
Progress invoicing in QuickBooks requires creating an estimate first, then billing against it in portions. Enable the feature in settings, structure your estimate by phase or milestone, and create invoices from the estimate as work progresses.
Read answerWhat QuickBooks reports should a contractor review?
The Profit & Loss by Job report matters most because it shows which projects made money and which lost it. Also review A/R Aging, A/P Aging, Estimate vs. Actuals, and Unbilled Costs by Job regularly.
Read answerHow do I track subcontractors in QuickBooks?
Set up each subcontractor as a vendor with their W-9 information and mark them as 1099 eligible. When you enter their bills, assign each one to a specific job or project so you can see sub costs by project and generate 1099s at year end.
Read answerShould I use QuickBooks Online or Desktop for construction?
QuickBooks Online is the better choice for most construction businesses today. The mobile access, cloud collaboration, and job costing features make it ideal for contractors who need to track costs from the field.
Read answerHow much does a bookkeeper cost for a small business?
Most small businesses pay between $200 and $800 per month for bookkeeping services. The actual cost depends on transaction volume, complexity, and what's included. Specialized industries like construction typically cost more.
Read answerWhat is included in full-service bookkeeping?
Full-service bookkeeping covers transaction categorization, bank and credit card reconciliation, and monthly financial statements. You get clean books without doing the work yourself.
Read answerHow do I catch up on months of back bookkeeping?
Start with your bank statements and work month by month. Gather supporting documents, reconcile each account, and categorize transactions chronologically. The longer you've been behind, the more time it takes to untangle.
Read answerWhat is catch-up bookkeeping and how does it work?
Catch-up bookkeeping is the process of bringing your books current when they've fallen behind by months or years. It involves gathering financial records, reconciling accounts, categorizing transactions, and producing accurate financial statements.
Read answerShould I outsource payroll or do it myself?
It depends on your employee count, tax compliance comfort level, and time value. Payroll software works for simple situations with 1-4 employees, but outsourcing pays for itself when complexity increases or your time is better spent elsewhere.
Read answerWhat is accounts payable management?
Accounts payable management is the process of tracking, organizing, and paying vendor bills and invoices. It includes receiving invoices, verifying them against orders, coding them to the right categories or jobs, and scheduling payments to maintain vendor relationships and healthy cash flow.
Read answerHow do I improve my accounts receivable collection?
Improving collections starts with your system, not chasing invoices harder. Invoice immediately, set clear payment terms before work begins, make it easy to pay, and follow up systematically. For contractors, don't let work get ahead of payment.
Read answerWhat is a fractional CFO and do I need one?
A fractional CFO is a part-time Chief Financial Officer who provides strategic financial guidance without the cost of a full-time executive. You might need one if you're making decisions without clear financial data, planning significant growth, or struggling with cash flow despite being profitable.
Read answerWhen should a small business hire a CFO?
Most small businesses don't need a full-time CFO until they're well past $10 million in revenue. But you might need CFO-level thinking sooner if cash flow is tight despite profitable books, you're facing major decisions, or you need help with financing.
Read answerHow do I set up QuickBooks correctly from the start?
Start with three decisions before creating your company file: accounting method, fiscal year, and entity type. Then customize your chart of accounts, set up items for what you sell, connect your bank accounts, and configure job tracking if you need to see profitability by project.
Read answerWhat training do I need for QuickBooks?
It depends on your role and what you'll handle in QuickBooks. Business owners reviewing reports need an hour of learning. Those entering transactions and reconciling accounts need 3-5 hours of focused training on the fundamentals.
Read answerHow do I track inventory for a construction business?
Most construction materials are job costs, not inventory. True inventory tracking is only needed for materials kept in stock before being assigned to specific projects. Focus on job costing for project-specific purchases.
Read answerWhat is inventory accounting for contractors?
Inventory accounting tracks materials and supplies contractors purchase, store, and use on jobs. It ensures costs hit the right projects at the right time, which matters for accurate job profitability and tax reporting.
Read answerHow do I handle Utah sales tax for my business?
Register for a sales tax license through the Utah State Tax Commission before collecting any tax. Collect from customers on taxable sales, track everything by location, and file returns monthly, quarterly, or annually depending on your volume.
Read answerWhat sales tax do contractors need to collect in Utah?
Most Utah contractors don't collect sales tax from customers on construction work. Instead, contractors pay sales tax when purchasing materials because Utah considers them the end consumer of materials incorporated into real property.
Read answerWhy do I never know how much money I actually have?
Your bank balance doesn't show the full picture. Without tracking receivables, payables, and upcoming obligations, you're always guessing at your actual cash position.
Read answerHow much of my bank account is actually mine?
Your bank balance includes money you owe but haven't paid yet. Subtract accounts payable, payroll, payroll taxes, sales tax, and customer deposits for unfinished work to find your true available cash.
Read answerWhy does my business make money but I have no cash?
Profit and cash aren't the same thing. Your P&L shows accounting profit, but cash gets consumed by receivables, loan payments, equipment purchases, and owner draws that never appear as expenses.
Read answerWhy are my books always behind?
Books fall behind because running the business takes priority, and the backlog quickly becomes overwhelming. Fix it with weekly time blocks, better receipt management, or by outsourcing to someone who can keep up with it consistently.
Read answerHow do I stop losing money on jobs?
Start tracking costs by job in real-time so you know where money is going before it's gone. Most contractors lose money because they don't see the problem until the job is done and the damage is already on the books.
Read answerWhy do my financial statements never make sense?
Financial statements that don't make sense usually stem from unreconciled accounts, inconsistent categorization, or mixing personal and business transactions. Sometimes the statements are accurate but require practice to interpret correctly.
Read answerHow do I know if my business is actually profitable?
Your bank balance doesn't tell you. Profit shows up on your income statement after accurate bookkeeping. Many owners also forget to account for their own labor, which makes the business look more profitable than it really is.
Read answerWhy is tax time always so stressful?
Tax time stress usually stems from scrambling to organize a year's worth of financial records in a few weeks. The solution is consistent monthly bookkeeping that keeps records organized year-round, eliminating the last-minute scramble.
Read answerHow do I fix years of bad bookkeeping?
Start by gathering all bank and credit card statements, then prioritize the most recent three years. Bank reconciliation forms the foundation. Work month by month, matching every transaction and separating personal from business expenses.
Read answerWhy do I keep getting surprised by expenses?
Expense surprises usually happen because irregular costs aren't planned for, committed costs aren't tracked, or you're only looking at your bank balance instead of your full financial picture.
Read answerHow do I stop mixing personal and business finances?
Open a separate business bank account and credit card, then never use personal accounts for business or vice versa. Pay yourself a regular draw instead of grabbing money when you need it.
Read answerWhat happens if my books are a mess?
Messy books lead to tax problems, missed deductions, and flying blind on cash flow. The good news is it's fixable through catch-up bookkeeping. The sooner you address it, the easier and cheaper the cleanup.
Read answerHow do I get my bookkeeping under control?
Start by separating business and personal finances completely. Then catch up on past transactions before establishing a weekly rhythm. The key is making bookkeeping a consistent habit rather than a quarterly scramble.
Read answerWhy am I always behind on invoicing?
You're behind because invoicing isn't built into your workflow. It gets pushed aside by everything that feels more urgent until you're weeks behind and missing revenue.
Read answerHow do I improve my cash flow?
Invoice immediately, collect consistently, and delay outgoing payments strategically. Most cash flow problems come from timing gaps between when you pay expenses and when you collect from customers.
Read answerWhen should I hire a bookkeeper for my business?
Hire a bookkeeper when you stop knowing your numbers, when bookkeeping tasks eat into time you should spend running your business, or when you hit milestones like hiring employees or taking on larger projects.
Read answerHow do I scale my construction company finances?
Scaling construction finances means building systems that handle more projects without losing visibility into profitability. Job costing, cash flow management, and proper accounting infrastructure have to be in place before growth or you're just multiplying problems.
Read answerWhat financial systems do I need to grow my business?
At minimum, you need separate business bank accounts, properly set up accounting software, and a consistent way to track expenses. As you grow, add job costing, payroll, and cash flow forecasting.
Read answerHow do I prepare my business for growth?
Growth multiplies whatever systems you have in place. Before scaling, you need clean books, real profitability visibility, and financial processes that can handle more volume without breaking down.
Read answerWhat financial reports do I need to get a business loan?
Lenders typically require a profit and loss statement, balance sheet, cash flow statement, and two to three years of tax returns. Bank statements and accounts receivable aging reports are also common. Clean, accurate books make a stronger case.
Read answerHow do I improve my business credit?
Build business credit by separating personal and business finances, opening accounts with vendors who report to credit bureaus, and paying every bill on time. Clean financial records also help when applying for larger credit lines.
Read answerWhat should I track as my company grows?
Start with cash flow, gross profit margin, and accounts receivable aging. As you add employees and take on more projects, layer in labor costs by job, overhead ratio, and customer profitability. The goal is seeing problems before they become emergencies.
Read answerWhat bookkeeping does a small business need?
Every small business needs transaction recording, monthly bank reconciliation, proper expense categorization, and basic financial statements. Additional needs like job costing or payroll depend on your business type and size.
Read answerHow often should a small business do bookkeeping?
Monthly bookkeeping is the minimum for most small businesses. Weekly works better for businesses with high transaction volume or those tracking job costs. The right frequency depends on your decision-making needs and how current your numbers need to be.
Read answerWhat is the difference between a bookkeeper and an accountant?
Bookkeepers record transactions and maintain your books on an ongoing basis. Accountants analyze that data, prepare taxes, and provide strategic advice. Most businesses need both working together.
Read answerShould I do my own bookkeeping or hire someone?
It depends on your transaction volume, industry complexity, and what your time is worth. DIY works for simple businesses with minimal transactions. Hiring makes sense when bookkeeping eats into revenue-generating time or when mistakes start costing you money.
Read answerWhat records should a small business keep?
Keep financial records like bank statements, receipts, and invoices. Tax documentation should be retained for seven years. Business formation documents, contracts, and insurance policies need permanent or long-term storage.
Read answerHow long should I keep business financial records?
Keep most business financial records for seven years. Tax returns and corporate documents should be kept permanently. The specific timeframe depends on the document type and what the IRS might need during an audit.
Read answerWhat tax deductions can small business owners take?
Most ordinary and necessary business expenses are deductible. This includes operating costs, vehicle expenses, equipment, professional services, insurance, and marketing. The key is tracking and documenting everything properly.
Read answerHow do I separate business and personal expenses?
Open a dedicated business bank account and credit card. Run all business transactions through these accounts and keep personal purchases separate. This creates a clean audit trail and makes bookkeeping straightforward.
Read answerWhat is accrual vs cash basis accounting?
Cash basis records income when received and expenses when paid. Accrual records income when earned and expenses when incurred, regardless of when cash changes hands. The method you choose affects how your financial statements look and your tax planning options.
Read answerWhich accounting method is best for my small business?
Cash basis works for simple service businesses with quick payment cycles. Accrual basis is better for contractors and project-based businesses because it shows true profitability by matching income and expenses to actual work completed.
Read answerHow do I prepare for tax season as a small business?
The best preparation happens year-round with accurate monthly bookkeeping. Before filing, gather income documents and 1099s, organize expense records, verify categories, and meet with your tax preparer early.
Read answerWhat 1099 forms do I need to file?
The main form is 1099-NEC for any subcontractor or service provider you paid $600 or more during the year. You may also need 1099-MISC for rent payments. The deadline is January 31 for both recipients and the IRS.
Read answerHow do I handle contractor vs employee classification?
The IRS looks at behavioral control, financial control, and the type of relationship. If you control how and when someone works, provide their tools, and they work exclusively for you, they're likely an employee regardless of what you call them.
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