Always Be Reconciling
Reconciling Accounts in Construction
The bottom line, low-down, simple purpose of reconciling construction business accounts is to check that two sets of records and figures are in agreement. The process involves:
Credit Card Transactions
Accounts Payable
Accounts Receivable
Payroll
Fixed Assets
Job Costing
Wip Reports
Change Orders
Subscriptions
And More
The reason? Ensure they are all properly accounted for, balanced, and in agreement.
Reconciling is done at regular intervals as part of standard accounting procedures. It includes identifying and correcting discrepancies by investigating differences between accounts, making necessary adjustments, and documenting the process for accuracy. All reconciling items should be explained and have supporting documentation.
Five Ways Reconciling Serves Construction Contractors
Reconciling isn’t only about having a set of books that look pretty. The following are five specific ways reconciling your accounts empowers you to run a more productive and profitable construction business.
Validate Data Entry
Identify irregularities, such as misapplied payments, duplicate entries, or unauthorized transactions.
Identify or Prevent Fraud
Look for altered invoices or unauthorized credit card activity.
Manage Cash Flow
Make better financial decisions regarding investments, debt management, or operational spending. And make more reliable cash flow forecasts.
Spot Revenue Leakage
Recognize uncollected receivables, estimating or bidding errors, inaccurate time tracking, missed change orders, scope creep, or administrative errors.
Ensure Accurate Tax Reporting
Prepare proper financial statements that comply with financial reporting standards and regulations.
Always be Reconciling – Meaning
Deeply rooted in the mission and values of The Profit Constructors is the concept of “Always Be Reconciling.” But what does that mean? The obvious answer is that our team works diligently to provide our clients with financial reports and business advice based on up-to-date, accurate, and, therefore, valuable information. Yet there is more. The intent is to maintain an attitude based on the value of “Always Be Reconciling.”
Whether dealing with numbers or people, the point of reconciling is to:
Adjust
Resolve
Rectify
Make Peace
Ambitious Construction Contractors look to The Profit Constructors to provide advocacy in dealing with:
Clients and customers
Employees and subcontractors
Vendors and service providers
Governmental entities
Working with The Profit Constructors gives Construction Contractors the means to organize their operations in ways that help them:
Remain informed
Avoid hassles
Reduce risks
Be future-ready
Ready for action? Or want to know more? Get in touch today to schedule a complimentary discovery call. 866-629-7735
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