488: Ways To Get Rid Of Construction Accounting And Bookkeeping Confusions

<h1 style="text-align: center;"><span style= "color: #0000ff;"><strong>This Podcast Is Episode Number 488, And It's About Ways To Get Rid Of Construction Accounting And Bookkeeping Confusions</strong></span></h1> <div>Doing something different is hard. Do you feel like everyone else is the most brilliant person in the room, and you just don't get it? Getting into a rut and repeatedly doing the same things is easy.</div> <div> </div> <div>If those things work, then yes, continue to do them repeatedly. The problem is when something is not working, and you continue down the same path expecting a different result. The opposite of too much change can create another form of chaos. How do you know what is broken if you change a zillion things all at once?</div> <div> </div> <div>Looking for ways to make your job easier is the goal of all construction contractors. The last thing you want to hear from your staff or a trade contractor is, "Do you want me to do that over?" Your answer is "No!" (thundered, with many extra words). What you expected was that your staff did it correctly the first time.</div> <div> </div> <div> <p><strong><span data-preserver-spaces="true">In accounting, the first piece of the confusion comes from Construction Accounting Vs. Regular Accounting.</span></strong> <span data-preserver-spaces= "true">Not everyone knows what construction accounting is, and easy to assume all accounting is the same.</span></p> <p><span data-preserver-spaces="true">Why is there confusion? From a tax standpoint, most construction projects are all lumped together, and after the Cost of Good Sold, Expenses, and Depreciation, you either made money or didn't. The Tax Accountant rolls up the numbers to compete for the annual tax return. Therefore, if the information is not needed to be broken down for taxes, then the Tax Accountant is not concerned.</span></p> <p><span data-preserver-spaces="true">As the Construction Contractor paying the bills, you are constantly concerned about which jobs are "Making Money or Losing Money."