Construction Accounting
Editor's Note: ProAdvisor Karen Siewert will teaching "Specializing in the Contractor Industry" at this year "Scaling New Heights®" conference on Monday, June 5. Here, she describes her journey and triumph over her Yeti.
How did I face the Yeti? He met me on my journey and, without my construction hat on, hit me in the head. My journey in this field began after I had my first child and wanted to work part-time. A local contractor needed a part-time bookkeeper – tag, I was it. (Homestead Design, Essex Junction, VT)
That was in 1984. This company was in its infancy and needed talented help. I was up for the challenge. As they grew, I did too – in knowledge about the industry. I converted their system twice, wired their new building, investigated their hardware needs, learned about the technology requirements of software, and became a local instructor for the industry-specific software they were using.
I moved on after 10 years to work for Bruegger’s Bagels working with the Corporation’s Fixed Assets, Positive Pay system and their Store Build Outs with the Real Estate department. Bruegger’s was later sold to a franchisee and their talent dispersed, including me. I started working for myself at that point in time as a consultant and bookkeeper.
I took on bookkeeping for a kitchen and bath designer who had a storefront, and a small contractor who did miscellaneous jobs. The general contractor was using QuickBooks, and I converted the kitchen designer to QuickBooks at that time.
Every ProAdvisor must assess the client’s needs with them so they are aware of what they can or can’t do with either program.
I was contacted by the CFO of Bruegger’s who had moved on to another franchise as their CFO for assistance with their Fixed Assets. I explained QuickBooks could do this in an inexpensive way for their reporting needs using the Job Costing and Estimating available in the software.
QuickBooks was an easy learn for the real estate staff, and the accounting department did not want the real estate department in the company’s Great Plains System at that time. We used the information in QuickBooks (exported it) and they became compliant with their reporting needs sooner rather than later.
That was my entry into QuickBooks and Construction.
Many QuickBooks technology conferences later, I met Nancy and Ben Smyth (Sunburst Software Solutions – CAPS) who live closest to me in the northeast kingdom of Vermont, Chuck Vigeant (Clearify – QQube) now a Texas native, Dawn Scranton (Association of QB Technologists) from Florida and these contacts and networking at the conferences, gave me a better insight to the add-on's that make QuickBooks Desktop a robust construction program.
I joined the local Home Builders and Remodelers Association and taught many classes for them as well.
QuickBooks Online has a strong presence today and construction add-on programs are growing, for the contractor’s needs. I met Dan de Roulet Jr. (Knowify) at "QuickBooks Connect." The CCAN program they offer in association with the Woodard Group also will assist the growing advisor to learn the industry and interface with QBO.
There are other apps for QBO too, but there is not enough time or space to mention every one of them here.
Every ProAdvisor must assess the client’s needs with them so they are aware of what they can or can’t do with either program. Their "wants" and "must haves" are extremely important. This class will review some of the items to look for.
I learned that worker’s compensation was the "most expensive" insurance that a growing builder has and needs to be analyzed monthly to see if they will owe or if they are owed money. It is way too late after the year is over and money has been distributed in bonuses for the contractor to find out that he/she owes money that was just recently given out as a bonus – we will address how this can be managed in QuickBooks.
The tools demonstrated in the class will give a better insight as to what a contractor may need or find valuable.
The use of purchase orders was instrumental in my experience to maintain profitability and eliminate the need for the invoices to be re-approved by management, after all they estimated it, and ordered it to begin with, documenting made the reports correct and the bookkeepers job easier.
We will review the terminology, setups, estimating, payroll, purchase orders, reporting and communicating in this class. The tools demonstrated in the class will give a better insight as to what a contractor may need or find valuable. Add-on technology also will be discussed and, if time allows it, will be demonstrated.
Item-based transactions are where my business has grown, while construction, manufacturing and retail are where I find my clients. After all isn’t manufacturing just another construction job?
You can find more details about her course and the other sessions at the "Scaling New Heights Conference®" in a downloadable document located here: Download Course Descriptions
As your ever-faithful Sherpas, we stand ready to guide and encourage you along your chosen path. If you would like to consult with us about your path, please email me at coliver@woodard.com or Liz at ecolley@woodard.com.
Be sure to tell us your goals and what you hope to learn so we can recommend appropriate learning paths for your upcoming "Scaling New Heights®" experience in Orlando Fla.
Karen Siewert is a member of Intuit’s Solution Provider, Certified QuickBooks® ProAdvisor Program, and the Intuit Accountant Trainer/Writer Network. Karen holds Intuit Certifications in QuickBooks® Point of Sale, QuickBooks Enterprise Solutions, QuickBooks® and the Advanced Certification for QuickBooks®. Karen has over 2000 hours of specialized training in the use of QuickBooks® and has over 30 years of accounting & bookkeeping experience. She provides QuickBooks® consulting services throughout the United States utilizing remote access and locally in Vermont.