Accounting and record keeping
There is no function more critical to your success in construction than effec-tive management of financial and other records. Only with good accounting and record-keeping policies and procedures can you achieve the following functions:
Collect the information you need to monitor the performance of current and completed projects
Manage payables and receivables Forecast cash needs Improve your estimating function based on historical job cost Tag the best-performing and non-performing employees Identify unprofitable customers Expose dishonesty Comply with tax laws, while taking every advantage permitted by them Provide information required by various government agencies Know the financial status of your company at any given point in time Archive records that will be required for various purposes in the future
Professional expertise is required to design the record-keeping systems. Hire an outside CPA for this purpose. Once the systems are in place they can be maintained by a competent in-house bookkeeper or bookkeeping staff and reviewed
by your CPA. Your CPA is a consultant to you and your bookkeeper, who may also be a CPA.