Construction bookkeeping is far more complex than it appears. Here are five reasons why it's a challenging task:
- Multi-Job Cost Tracking: Managing the finances of several construction projects at once is intricate. This involves handling a high volume of vendor invoices and expense receipts. Each is associated with different jobs.
- Precise Categorization: Accuracy in categorizing every transaction is critical. Each vendor invoice must be correctly coded to the appropriate job and cost code/account. Errors in coding can lead to inaccurate financial records.
- Budget Management: Construction budgets can be extensive and require constant updates to track actual costs vs. budgets. They can range from 20 to 100 row spreadsheets, depending on the level of detail the contractor needs to track.
- Change Order Tracking: Construction projects often experience changes in scope. These changes impact both costs and revenue. Failing to track even a single change order can result in significant financial losses.
Given these complexities, contractors and bookkeepers can save time and get better visibility by using a construction specific bookkeeping tool.
Here's where BuildX comes in. It is a bookkeeping automation tool specifically for residential construction. It helps both contractors & bookkeepers save time, and reduce hassles. It can reduce time spent on bookkeeping by 75%.
To know more, please visit www.getbuildx.com
