Bookkeeping can feel overwhelming for custom builders, but with the right strategies, you can simplify the process and reclaim your valuable time. Whether you’re managing finances solo or with a small team, staying organized is key. Here’s a guide to help streamline your bookkeeping so you can focus on growing your business.
1. Digitize Your Invoices and Receipts
Paperwork can pile up quickly. Transition to a digital system that allows you to scan and organize documents using tools like QuickBooks. Snap photos of receipts or upload them directly from your email. Once digitized, categorizing them becomes a breeze, ensuring nothing slips through the cracks.
Tip: Create project-specific folders to organize receipts and invoices. This will save time when reviewing expenses for individual jobs.
2. Use Project Management Software with Accounting Integration
If you’re already using project management software to track materials, timelines, and subcontractors, consider platforms like Ressio and Buildertrend that offer accounting integrations. These tools sync with your bookkeeping system, reducing manual data entry and keeping everything up to date.
Tip: Look for project management tools that seamlessly integrate with your existing accounting software.
3. Establish Clear Payment Terms
Clear payment terms can help you avoid cash flow headaches. Make sure your contracts specify when payments are due, whether tied to milestones, project completion, or specific intervals. Automating invoice reminders through your accounting software can prevent delays that disrupt cash flow.
Tip: Set up automated reminders for clients. This can significantly reduce the time spent chasing late payments.
4. Set Aside Time Weekly for Bookkeeping
Catching up on bookkeeping can be daunting. Instead, dedicate 30 minutes to an hour each week to stay on top of your finances. Use this time to update accounts, review outstanding invoices, and check for discrepancies.
Tip: Make bookkeeping part of your weekly routine. Consistency will help prevent last-minute stress and costly mistakes.
5. Hire a Professional for Year-End Taxes
Even if you’re managing daily finances yourself, enlisting a tax professional for year-end taxes is invaluable. They can help you maximize deductions and ensure compliance with industry-specific tax regulations. Plus, a fresh set of eyes on your books reduces the risk of costly errors.
Tip: Keep a running list of deductible expenses throughout the year. Providing organized records to your accountant can save you on preparation fees.
By implementing these five steps, custom builders can streamline their bookkeeping, leading to fewer headaches and more time to focus on what truly matters in their business. It’s all about getting organized, staying proactive, and utilizing the right tools to make your life easier.