Therefore, we take special steps to ensure that you can access your financial data at any given point in time. With our professional services for bookkeeping in Phoenix, you can rest easy while we take care of the cash influx and outflow. RedHammer is proud to serve construction companies in Arizona, leveraging our deep understanding of the local market to help you achieve financial clarity and operational efficiency.
Software Selections
If you’re looking for a bookkeeping service for construction companies and contractors, then you’re in the right place. We help all types of contractors & construction companies with their bookkeeping, tax returns, accounting, payroll and tax reduction planning. The first step to building more accurate accounting processes is recognizing that construction accounting is different. It’s definitely a mindset shift, but the good news is, no matter what kind of contractor you are, your construction firm’s needs are going to look pretty much the same. It’s how (and how much) you lean into practices like WIP reporting and job costing that will ultimately begin to move the needle for you. Some of the most popular ones include cash flow https://www.bignewsnetwork.com/news/274923587/how-to-use-construction-bookkeeping-practices-to-achieve-business-growth management, small business accounting, tax preparation and planning, CFO consulting, etc.
- Cyclical real estate development, the increasing demand for LEED-certified buildings, and many other economic factors make the construction industry one of the most challenging.
- Foster Financial is one of the top Arizona accounting firms that can help you manage the money in the organization very effectively.
- We have learned a lot about our business and now feel comfortable with our financials.
- To actually be effective, your cost coding system needs to be used consistently by everyone in your company.
- We’ll create a comprehensive tax reduction strategy that helps you dramatically lower taxes in the short term and long term.
RedHammer Engagement Process
- When the need arises, companies across Phoenix turn to BeachFleischman to address financial reporting and compliance needs.
- Whether you search for “RedHammer” or “Red Hammer,” you’ve come to the right place for industry-leading construction accounting services.
- Your change order system should track a potential change from the moment the issue is identified to the end (whether a change order was actually issued for the work or not).
- Regardless of what financial software system you use, our team of accounting experts will review and optimize your system and processes.
- You can rely on us to promptly address any questions or concerns you may have, providing you with the support you need to make informed financial decisions for your business.
- We’ll assess your current financial processes and identify opportunities for improvement.
- For example, instead of a fixed 10% holdback on each progress billing, you might negotiate terms that reduce that rate to 5% once the job reaches the halfway point.
Our team of seasoned professionals and industry experts delivers solutions designed to streamline financial processes, optimize reporting, and drive growth for businesses in Arizona. We provide detailed, accurate, and timely financial reports, including profit and loss statements, job cost reports, and construction bookkeeping work-in-progress (WIP) reports. Our goal is to give you clear visibility into your financial health, helping you make informed decisions to improve profitability and reduce risk. We maximize your software resources and supplement where the software falls short.
Change Order Management
To actually be effective, your cost coding system needs to be used consistently by everyone in your company. This ensures accurate and consistent data entry that will ultimately help you bid better on future projects. Having this kind of system for every construction contract you take on is essential.
Check Out RedHammer’s Related Blogs
Our accounting experts at Whyte CPA share some top tips to keep your construction bookkeeping on solid ground. Because of the complexity of construction accounting, bankers, bond agents, and sureties expect construction contractors to utilize the expertise of CPAs that focus in construction. Conover Asay CPAs does not just focus in construction, it is our passion. Whether you are looking to become bondable or to increase your bondability, Conover Asay CPAs can help you make business decisions that you feel confident with. Your job costing system can make or break your company’s cash flow, profitability and effective use of staff time.
We streamline both accounts receivable (AR) and accounts payable (AP) by implementing best practices tailored to construction businesses. This includes retention management, progress billing, invoice processing, vendor management, and timely payment schedules, ensuring healthy cash flow and on-budget projects. Holding back retainage is standard on most construction jobs, especially long-term contracts. If it’s not reimbursed quickly enough though, it can cause a domino effect of cash flow problems.
To properly record and track retainage, you’ll need to include an account for retainage receivables on your company’s Chart of Accounts. Next, make sure all retainage is accurately represented on your balance sheet. If you’re an emerging contractor still wrestling with the unique challenges of construction accounting, this guide will make sure you’re equipped with the tools to make sound financial decisions. Consider this resource a jumping-off point — we’ll outline the basics and point you toward more in-depth guides on each topic covered so you can keep your construction company moving forward.
Financial Reporting
Specialized Tradesmen or companies handling specific tasks like plumbing, electrical, or framing within a project. You guys are like my best subcontractor–I can focus more on the opportunities now and even have a better idea of how fast we can move and the risks we can take. We’ll setup, manage and help with your payroll needs whether you’re a single owner s-corp, or if you’re a large corporation. We know exactly what it takes to create a more scalable and profitable construction business, while ensuring that the IRS and State tax authorities are kept at Bay because everything’s done perfectly. Executive level financial experience & knowledge is difficult for most entrepreneurs, we’ll serve as your CFO. We’ll finish the accounting in a fraction of the time it takes your team, and we’ll save you from hiring more employees than necessary.