When handing over your construction company finances to someone else to be cleaned up, it can be a bit scary. Your company finances are probably something you don’t talk about with others and it might feel uncomfortable at first. Getting through that initial awkward phase can be tough, but what you can gain when you have current and accurate books is invaluable to your company.
So let’s talk about what you can expect when you outsource your bookkeeping clean up to the pros.
Evaluation
When working with an outsourced financial partner, there will be a stage of evaluation and information gathering. Experts will work with you to get a true understanding of your current situation, like how far back your books need updating, how many transactions to be handled (including number of accounts, credit cards, etc.), and if it is your company financials overall or project financials.
Another area to be ready to discuss in this stage is your goals and expectations for updating. You will have the option to have your finances updated with full details or without, which could depend on the reason you are looking to get them cleaned up. Details include each transaction step, not just the outcome such as the customer invoice, payment and the deposit. Without details would include only the deposit to an income account. The team will work with you to determine the appropriate steps needed to match your expectations for when you are “cleaned up”. The more information gathered up front, the smoother the process will go.
Onboarding
Next on the agenda will be onboarding. In this step, an agenda and milestones will be set. Your input will be crucial here as well. Some items you will need to provide include:
- Access to accounts
- Access to software
- Credit card statements
- Bank statements
- Receipts
Really, all financial documents and statements will be needed before any work and updating can begin.
Clean Up Bookkeeping
Once all documents, statements, access, etc., have been given, it’s time for your bookkeeper to get to work. They will work piece by piece to get your books current and reconciled. Based on their findings, there may be additional information or clarification needed from you to get it right. You can expect meetings throughout the process as update/check-in points so you are informed on what is happening and where the project stands. A lot of times, while the bookkeeper is updating your books, they are discovering things within your finances worth noting, like:
- Duplicate payments
- Transactions recorded incorrectly
- Inaccurate customer balances
- Inaccurate vendor balances
Keep in mind, this is a process and does take time to get updated and ensure accuracy (of course, based on your unique situation) but when it’s done, you will be ready to move your business forward.
Moving Forward
So let’s talk about that a little bit more. The goal is to get your books current and cleaned up but what all does that mean? It means:
- Your books will be reconciled.
Every transaction will be reconciled and compared against statements and accounts. There will be no unclear transactions. Any duplicates will be found and corrected. - You will know where your money is and goes.
Once your books are accurate and current, you will have a much clearer picture on where your money is being spent. You will know what your true costs are and know if you are making money. - You will be able to identify opportunities for improvement.
Because you have the true information that is organized, clear and tells the story of how your jobs are going; you will be able to see areas that need improvement in your business. You will be able to tell if your costs look out of line or if you aren’t charging enough. If you have cash flow concerns, you will be able to identify them and make a plan for fixing them. - You will be prepared for growth.
Making improvements on the numbers will allow you to ensure you are making money and able to pivot if necessary. Knowing where you are financially positions you for growth because you can see patterns and start to forecast from here.
PRO TIP:
Once your books are cleaned up, it will be important to keep them updated each month so you can have financial information at your fingertips and continue to grow.
Why Outsourcing
Outsourcing your bookkeeping clean up can be the most effective and efficient way to get the job done. When you work with 24hr Bookkeeper, you can trust that it is going to be done right and that you will know where you stand financially. You will have information you will be able to use to file taxes or apply for loans and/or grants. Any cash flow concerns that you might have can also be addressed. You don’t have to worry that your situation is too complicated or messy, our team has seen all types of situations and understands how easy it is to get in that situation. We also know how to get you out of those situations.
Our bookkeepers are not only experts in bookkeeping but also understand the construction industry and what you face on a daily basis. By having them take care of the books, you can focus on actually running your business.
Get a hold of us today to find out how we can help in your situation!
