Many construction companies invoice for large jobs and projects. Billing is based on a percent of completion. Because of so many variables, it is important to choose an accountant who understands this concept of invoicing.   There is retention amounts that are held for large on-going projects. As a result, often an AIA G702/G703 progress billing form is necessary.   

G702 is a summary of the following: 

• Sum of contract to date
• Contract Amount
• Previous Billed & Total Paid to Date
• Change Orders
• Current Amount Requested

 The G703- provides the following: https://www.informedcontractors.com/aia-forms-g702-g703.html

• Job Codes & Job Cost
• Scheduled Values
• Percentage of completion
• Retention  for each line item

So why is it important to find an accountant or bookkeeper who “specialize” in construction accounting?  Because there is a lot to consider, such as, Change Orders, Retention, Progress Billings, Lien Waivers. With so much to track, errors are not an option.

It is not enough to hire just any bookkeeper or accountant. An experienced construction accountant can make your project run smooth. Not understanding progress billings can cause delayed payment.  Errors can cause an over/under billing. Fixing these mistakes are time consuming and costly to your job.

The General Contractor is responsible to pay all their subcontractors. In many cases, payment on your job is imperative in order to pay the smaller subcontractors. This requires excellent cash flow.   It is necessary to have an experienced accountant.  Knowledge and experience with Construction & Project Accounting  AIAG702/G703 can make all the difference.

In addition to progress billings, there are lien waivers to consider. Accuracy of all lien waivers is an absolute for payment release.

Call Gal Friday Bookkeeping today! https://www.galfridaybookkeeping.com/contact-us/ We have years of construction industry experience. Our knowledge and passion can bring you the peace of mind you deserve.

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Whether you have a large business or small business you most likely will need a bookkeeper. The question is whether you have enough space, time or funds to justify a new on site bookkeeper. An off-site bookkeeper can work with you remotely to keep track of your finances on a daily, weekly, and monthly basis.

Bookkeeping Software

There are many different bookkeeping softwares that are available that will suit most any business or industry.  Quickbooks is probably the most well known and can handle the job for many industries. Many off-site bookkeepers already own and maintain an updated version of the software you are already using.

Video Conferencing

High definition video conferencing is great for meetings where you can see your off-site bookkeeper face to face, screen sharing options, instant chat messaging capabilities and more.

File Sharing

When you are able to use file sharing, it is very helpful and can be password protected and or encrypted for sensitive items that you do not want to risk getting out into the public arena.

Hiring an on site bookkeeper requires a company to incur extra costs. For you, these are costs that go beyond the salary that you pay to your bookkeeper. A full-time employee will want benefits. In addition, your new bookkeeper will take up office space. Your on site bookkeeper will use company equipment to get the work done.

Off-site bookkeepers spend their entire time doing bookkeeping and competing for new business from a variety of industries. Therefore, they know enough about a lot of different industries as they keep themselves competitive.

Bookkeeping can be a complicated and a time consuming task. When you hire an off-site bookkeeper, it enables you to concentrate on other aspects of the business and save money at the same time.

We make this whole process easy and affordable. If you would like to see if we are a good fit for you, click here.

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