Top Bookkeeping Services for General Contractors

As a general contractor, you juggle more than just hammers and nails; you’re managing projects, timelines, and client expectations—all while trying to keep your business thriving. 

But amidst the hustle of job sites and deadlines, one critical aspect often gets overshadowed: your finances, which require reliable bookkeeping services!  

Enter doola Bookkeeping—your unsung hero that can make or break your operational effectiveness. 

Whether you’re looking to streamline expenses, improve invoicing accuracy, or stay on top of tax obligations, we’ve got you covered.

Dive in and discover top bookkeeping services that can help you build not only structures but also a strong financial foundation for sustainable growth!

The Hidden Costs of Poor Bookkeeping for General Contractors

Many contractors view bookkeeping as just another tedious administrative task or see it as an unnecessary expense. 

However, the truth is that poor bookkeeping can lead to hidden costs that can significantly impact your business’s financial health. 

So, we’ve rounded up some of the potential hidden costs of inadequate bookkeeping for general contractors.

⚠️ Missed Tax Deductions

Without accurate and organized record-keeping, you could miss out on valuable tax deductions that could save you significant amounts of money. 

Expenses such as materials, equipment rentals, and subcontractor payments need to be properly documented to ensure they are claimed correctly during tax time. 

However, not following proper bookkeeping techniques when recording these expenses could result in missed deductions and higher taxes.

⚠️ Late Payments or Penalties

Proper bookkeeping allows you to track invoices and payments to avoid late fees, which can add up over time and eat into your profits.

Failure to do so can result in late payments or penalties for missing deadlines set by clients or creditors.

⚠️ Excessive Debt

Poorly managed finances often lead to accumulating debt levels for general contractors who are unable to keep track of their expenses accurately. 

This overspending can quickly spiral out of control if not caught early on through diligent bookkeeping practices.

⚠️ Costly Errors

Bookkeeping errors happen more often than most people think. Whether it’s misinterpreting numbers or accidentally entering them incorrectly, mistakes in bookkeeping can be costly. 

For example, an incorrect calculation when estimating a project’s cost could result in losing money instead of making a profit.

⚠️ Inaccurate Financial Reports

Having a clear understanding of where your business stands financially is essential for making informed decisions. 

Without proper bookkeeping, your financial reports may not accurately reflect your business’s true financial standing, leading to poor decision-making and potential losses.

Essential Features to Look for in Top Bookkeeping Services for Contractors

As a contractor, your time is valuable, and managing bookkeeping tasks on your own can be overwhelming and time-consuming. That’s where professional bookkeeping services come in.

However, not all bookkeeping services are created equal, and contractors must look for specific features when choosing the right service provider. 

Here are some essential features that general contractors like you should look for in bookkeeping services as a contractor.

1. Specialization in Contractor Bookkeeping

General accounting firms may offer bookkeeping services, but they may not have expertise in handling contractor-specific financial needs. 

A good bookkeeping service should have the capability to track job-specific expenses and provide detailed cost reports.

So, you must find a service provider that specializes in contractor bookkeeping. This will ensure that they understand your industry’s unique challenges and requirements.

2. Job Costing & Expense Tracking

Your bookkeeping platform or service must track specific project costs, including labor, materials, and overhead, to handle contracts of varying durations and manage revenue recognition based on project milestones. 

It should also include detailed expense categorization and tracking to monitor where money is being spent and accurately determine the profitability of individual projects.

3. Experience and Credentials

When looking for a bookkeeping service, make sure to check their experience and credentials. 

Look for certifications from organizations like the American Institute of Professional Bookkeepers (AIPB) or the National Association of Certified Public Bookkeepers (NACPB). 

These accreditations ensure that the service provider has met specific standards of professionalism and expertise.

4. Customizable Services

Standard bookkeeping systems or services may be great for other businesses, but they’re just not designed with contractors in mind. 

Every contracting business has its own financial needs, so it’s essential to find a bookkeeping service that offers customizable solutions to fit those requirements.

For example, cost codes and cost types should be included in your bookkeeping system. This allows you to track a project’s performance at a more granular level than income and revenue.

This also allows you to simplify retainage tracking on accounts receivables and payables, so you never have to worry about missing something.

5. Tax Preparation Assistance

Preparing and filing tax returns can be a daunting task for contractors with multiple clients and projects. 

Therefore, it’s important to find a bookkeeping service that provides tax preparation assistance to ensure timely and accurate tax filing while also maximizing deductions.

Look for bookkeeping services that include detailed profit and loss statements, balance sheets, cash flow management, and automated reconciliation for a smooth tax season.

Make sure you have dedicated support from bookkeepers and accountants in case you run into any issues or have questions. 

Top 4 Bookkeeping Services for General Contractors

As a general contractor, keeping accurate financial records is crucial for the success of your business. It helps you track your income and expenses, analyze your profitability, and make informed financial decisions.

However, bookkeeping can be a time-consuming task and may not be your area of expertise. This is where outsourcing bookkeeping services can come in handy.

There are many bookkeeping services available for general contractors, but not all are created equal. To help you narrow down your options, we have curated a list of the top 4 bookkeeping services that cater specifically to the needs of general contractors.

1) doola Bookkeeping

At number one on our list is doola Bookkeeping, an all-in-one bookkeeping and accounting system that offers comprehensive financial and administrative services for general contractors.

From invoicing clients to tracking job costs and expenses, we take care of all your bookkeeping needs so you can focus on running your contracting business efficiently. 

You can also track project-specific expenses, create detailed invoices with job costs included in them, manage vendor payments seamlessly, synchronize bank feeds automatically, and do so much more.

We provide an unbeatable combination of technology and expert human support, offering efficient and accurate bookkeeping services at a reasonable price.

Our team consists of certified professional bookkeepers and accountants who are well-versed in construction accounting. 

Key Features:

✔️ Income and Expense Tracking

✔️ Business Metrics

✔️ Auto-Tagging Transactions

✔️ Dedicated Bookkeeping

✔️ Self-Serve Invoice Creation

✔️ Financial Statements

✔️ Tax Filings

✔️ Catch-up Bookkeeping

Why It’s The Top Choice?

✅ Transparent, flexible pricing plans.

✅ 24/7 Customer support with a dedicated account manager.

✅ Tax-Ready year-end package for seamless tax filing.

Pricing:

doola Bookkeeping plans start at $25 per month for the bookkeeping software, providing high-quality services at affordable rates.

You can also opt for our All-in-one Accounting plan, which offers a discounted cost for managing your business finances and tax compliance.

2) QuickBooks Online

QuickBooks Online is a popular and user-friendly bookkeeping software among general contractors. 

It offers various features such as invoicing, expense tracking, project costing, and customizable reporting tools that make it ideal for small business owners like general contractors.

This service empowers general contractors to maintain accurate records while saving precious time so they can focus on their core business activities.

With its cloud-based connectivity, you can access your financial data anytime and anywhere as long as you have an internet connection. 

This makes it easier to manage your books on the go or collaborate with your accountant or other team members remotely.

Key Features:

✔️ Income and Expense Tracking

✔️ Bookkeeping Automation

✔️ Invoicing and Payments

✔️ Tax Deductions

✔️ General Reports

✔️ Cash Flow

✔️ Sales Tax

✔️ Bill management

Pricing:

QuickBooks operates on a tiered pricing structure that starts at $30 per month. While it may look affordable at first glance, the cost can add up quickly with necessary extras like invoicing, inventory management, or advanced reporting.

3) Bookkeeper360

Bookkeeper360 is a full-service online bookkeeping platform that specializes in serving small businesses in various industries, including construction. 

As its name suggests, it provides comprehensive accounting solutions that cover all aspects required for a modern-day general contractor’s business operations. 

From day-to-day bookkeeping tasks such as data entry to generating monthly financial statements – it covers everything!

If it’s too much for you to handle, their team of experts will take care of everything for you- from payroll processing to bank reconciliations to creating customized reports.

Key Features:

✔️ Advanced Reporting

✔️ Cashflow Analysis

✔️ Dedicated Accountant

✔️ Monthly or Weekly Accounting

✔️ Cash Basis or Accrual Basis

✔️ Monthly Financial Reports

Pricing:

Bookkeeper360 prices start at $399 per month and go up to $1,149 per month for an advanced Controller plan with all popular add-ons.

4) Freshbooks

Freshbooks is a popular bookkeeping service designed to meet the needs of self-employed professionals such as general contractors. 

Its user-friendly interface and robust features make it ideal for busy contractors with limited knowledge of accounting processes.

With Freshbooks, you can create professional-looking invoices in minutes, accept online payments from clients, track expenses, and generate financial reports in real-time. 

Apart from traditional accounting tasks like tracking income and expenses, it also provides construction-specific features such as job costing analysis and lien release tracking.

Key Features:

✔️ Unlimited Time-Tracking

✔️ Unlimited Expenses

✔️ Automated Bank Import

✔️ Business Health Reports

✔️ Bank Reconciliation

✔️ Accounts Payable

Pricing:

Freshbooks’ offers scalable pricing plans starting at $19 per month for basic invoicing needs. Or, you can also choose their premium plan at $50 per month for advanced features.

Solidify Your Finances with doola Bookkeeping: Offering Top Bookkeeping Services for General Contractors

Being a general contractor is no easy feat. You have to deal with multiple projects at once, manage budgets and expenses, and keep track of various invoices and payments. 

With so much on your plate, it’s crucial to have a streamlined bookkeeping system in place. That’s where doola Bookkeeping comes in.

From organizing receipts and invoices to tracking project expenses and preparing tax returns, we take care of everything.

Our services include but are not limited to tracking income and expenses, balancing accounts, producing financial statements, preparing tax returns, tracking project costs, and profitability analysis. 

By consistently monitoring these aspects of your business’s finances, we can identify areas where costs can be cut or improved upon.

Our team of highly trained professionals works closely with you to ensure all your bookkeeping practices align with laws so you can focus on running your business without worrying about compliance issues.

So, you can delegate time-consuming accounting tasks while having peace of mind knowing that your finances are in expert hands.

Book a demo with us today to learn more about how we can help solidify your finances!