If you’re like most construction businesses, you probably do your books by hand. Thanks to a combination of human error, and time constraints that cause you to fall behind in your accounts, doing your books by hand can lead to lost revenue or unnecessary costs, both of which equate to decreased profits for your business.

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If you struggle to keep your books up to date, or you do them by hand, the following common challenges might sound familiar:

• Poor tracking of payments (leading to overdue invoices and late contractor payments)
• Lack of tracking change orders (leading to job profit reductions)
• Ineffective inventory control (leading to over- and under-stocking)
• Ineffective job costing (leading to a loss on completed jobs and/or cash flow issues)
• Lack of understanding of Taxable Payment Reporting (leading to costly and time-consuming problems with the ATO)

 

Thankfully, with proper construction bookkeeping and reporting practices, you can avoid and mitigate all these challenges.