Accounting Services for a Construction Company
ABC Construction Case Study - Bookkeeping & Accounting
This construction company is a builder of fine homes. Below is a breakdown of the accounting system they had before LedgersOnline:
- A part-time accountant / bookkeeper who was a partner in a multi-site location was doing the bookkeeping for the company on an ad-hoc basis
- Projects were generally undertaken on cost plus contracts
- The general ledger accounting system was months behind in data entry
- Access to the general ledger was locked away on the partners computer in a location that was far from the office and job site
- All real time accounting information was being performed by the owner on excel spreadsheets including, payroll, job costing, expense control, and billing to clients for construction draws
- Reliable reporting for job costs, monthly profit and losses did not exist
The company was quickly set up on Quickbooks using the LedgersOnline App's on Demand system. This immediately gave everyone in the company collaborative access to the accounting system regardless of their location. The client provided LedgersOnline with the unrecorded transactions and a trial balance from the existing accounting system. Below is a list of what they received with LedgersOnline services.
- The accounting system was available in real-time to all authorized client personnel
- LedgersOnline brought the accounting records up to date.
- Current projects were converted to job costing
- All key reconciliations were done
- Reporting from the accounting system was introduced on a timely basis
- All new source documents ( accounts payable invoices, bank statements) are now being scanned to the LedgersOnline document management online system.
- Job costing was converted to the Corecon online construction management and costing solution, and integrated into Quickbooks producing a complete
construction accounting solution.
- LedgersOnline continues to deliver outsourced bookkeeping and accounting services to ABC Construction on a timely basis each month.
The company was issuing more complete requests for progress draws to their clients, resulting in fewer surprises at the end of the project, and less disputes on the final billing for their projects.
Greater confidence in procedures
Valuable job costing information is now available that enhances the accuracy of future estimates