Subcontractor

In running a business, the administration side already eats up a lot of hours, what more time can you spend doing accounting? You need a reliable automation tool that can give you the freedom to focus on the other important aspects of your business. QuickBooks for construction company, the construction industry, or really any subcontracting businesses in Fort Collins may be one of the solutions you are looking at to help improve your company’s accounting system.

Construction businesses and others involved in the construction industry in Fort Collins have found QuickBooks for your construction company can be beneficial if used correctly and then adjusted appropriately. But, while many subcontracting companies have success in using it, non-accountants may struggle with QuickBooks. The question is, can QuickBooks work for your subcontracting business? Do you even need one? Can it correctly address your financial issues?

To learn whether QuickBooks is necessary for your construction business, read on.

What is QuickBooks?

QuickBooks is an accounting software that allows you to manage your financial records anytime through your laptop and now, even your smartphone. It has been around since 1983 and developed over time to suit the demands of small, medium, and large-scale businesses. It’s available as standalone software and online.

It’s a beneficial tool for business owners who want to automate their accounting process and gain more time for the other aspects of the business. Fort Collins businesses use QuickBooks for the construction industry to easily track and manage their budget for projects, invoices, income, expenses, and other billables.

Is QuickBooks Really a Good Tool for Subcontractors?

Subcontractors in general will find QuickBooks a great accounting tool for keeping their finances in order. This is true especially if you intend to use it for various accounting functions, such as: 

• Billing 
• Tracking expenses, revenues, and checking account  
• Accounts receivable 
• Job costing 

Small and big businesses have successfully taken full advantage of the accounting capabilities of QuickBooks, which many consider one of the best so far. However, one important factor to take into account is the size of your team. If there are one or two people running the business and job costing is not a big deal, you can easily keep up with your finances with QuickBooks. You can even do the basic accounting manually if you have enough time to work on it.    

On the other hand, if your team consists of more than three people, and job costing has to be precise, QuickBooks would come in handy. 

Is QuickBooks a better tool for a small subcontractor construction business rather than larger construction businesses? 

QuickBooks is a great tool for both small and large subcontractor construction businesses. But rather than the size of your business, your primary concern should be whether QuickBooks is set up and used correctly. If not, the software could give you misleading information about the results of your finances.     

Are there types of subcontractors for which QuickBooks works better? 

As far as correct set-up goes, QuickBooks can work smoothly for most businesses such as general contractors. But QuickBooks cannot be reliable at all times. If you are managing several workers, your data becomes more complex, and so does QuickBooks. This is why having a CPA to help you out is highly recommended.  

Can QuickBooks for Construction Alone Handle Job Costing? 

Calculating project expenses and managing the cash flow is called job costing. It covers everything from the cost of materials, overhead costs, and labor costs. In job costing, all expenses are broken down in detail so that you can identify any issues that may affect your budget and profit margins. 

Job costing is a painstaking job. You must know how to use QuickBooks to get the job costing and other processes right because of the following factors: 

• The prices of materials can drastically rise within weeks or months.  
• The labor costs could also affect your budget if your workers have to work more hours than expected. 
• Unexpected expenses, delays, and changes are additional issues you may encounter along the way. 

QuickBooks for the construction industry can help with job costing, but it needs to be set up correctly to capture the overhead and cost by jobs. By tracking the numbers on an ongoing basis, you can ensure that you are making money from a particular project. On top of that, you need to understand the costs entirely. Otherwise, the estimating process could be a disaster. 

When using QuickBooks for construction industry in Fort Collins, you have to get the estimating process and job costing correct.  You also need to ensure that your bids are accurate and flexible according to current market prices. Constantly updating your data is also important, but this process takes time.   

Job costing is a crucial part of the accounting process to make money from a project. To get the most out of QuickBooks for the construction industry, you may require the expertise of an accountant in Fort Collins to get the data right and properly operate it.   

QuickBooks for Construction Job Costing + CPA

Accounting expert Steven J. Wick highly recommends QuickBooks for subcontractors in different industries, including construction and electric installation, but with caution. He says that QuickBooks is helpful for almost all types of subcontractors, big and small. But truth be told, it also has its limitations. While QuickBooks can perform basic to complex accounting operations, industry-specific objectives may require an additional plug-in or alternative software. More importantly, you may need a CPA to properly set up and operate QuickBooks for contractors to ensure your projects will generate profits. This is critical especially if your company’s pool of workers is growing. 

To get an accountant to run QuickBooks is more practical, after all, given that contractors in the construction industry – like plumbers or electricians – are technicians. In the field, they are masters of their crafts. Being a contractor, you are primarily out making bids and doing your job. Accounting and similar practices may not be your forte.  

That said, you can certainly repair any damage to one of your installations, which means paying more labor hours and buying additional materials. But accounting for these additional expenses has to be done by an accountant, especially if you do not fully understand the budget.  

Important Things that Construction Business Need to Remember When Using QuickBooks 

So, you have decided to use QuickBooks for your construction business.  Remember that it takes a great deal of commitment to make it work efficiently. Not because it’s a software means that it will do all the work for you. Always keep in mind: 

• There are things you need to do in QuickBooks on a regular basis, such as constantly updating your costing including your laborers’ pay for your estimating process. The constant update normally takes time, but doing so can give you accurate estimates for your bids.  
• Make sure your QuickBooks is set up correctly according to your business needs.  
• An efficient work system guarantees that everything runs smoothly. 
• It is also important to figure out whether the jobs you are getting will provide you with enough income to sustain your business operations.
  

Are You Considering QuickBooks for Construction Industry for Your Business? 

QuickBooks for the construction industry is a great accounting tool for your Fort Collins business if you want to save time and earn profit from your projects. Accounting is critical for any subcontracting business where prices can change quickly.  Proper accounting helps you avoid losing money and other various financial issues. Then again, it’s time-consuming, and a small business owner like you will find it too much to handle, especially when you are in charge of your company’s general operations.   

But a software like QuickBooks needs to be set up correctly so it can work efficiently. You won’t be able to use it for the estimating process and job costing without training, so hiring a CPA who understands how it works would be best. It is much better if you hire a local CPA with whom you can discuss the details in person. Using QuickBooks for construction industry with a CPA in Fort Collins gives you confidence that your projects will bring you financial success.  

If you need help with QuickBooks and accounting expertise, Steven J Wick and Associates, P.C. can assist you. Our accounting consultancy services have helped various businesses achieve growth and success. We can offer you various accounting system options that are right for your industry and the size of your company. 

If you prefer to outsource your accounting processes, we are also at your service. Aside from accounting, we can also help you with bookkeeping and tax preparations. Our goal is to provide the support you need so you can achieve success. While we take care of your company’s accounting matters, you can explore other business opportunities.  

Let us discuss your options! Call us for an appointment or visit our website for more information on our available business solutions.