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Being construction professional, you understand challenges of this industry are not confined to onsite working but backup support like bookkeeping/accounting are equally challenging.

Hence, there is a need to ensure you handover the task to not only competent but experienced and specialized construction bookkeeper.

During my ten years of this industry experience, I’ve fixed the mess created by generic bookkeepers in construction books. It’s not like these bookkeepers had no accounting understanding or they were not qualified, just they were not fit for the role as construction is highly specialized and carries challenging bookkeeping.

The challenging aspects of construction bookkeeping are driven by multiple factors including but not limited to the following,

• Long term contracts
• Decentralized operations
• Cost fluctuations
• Dynamic budget
• Technical revenue tracking
• Job costing/project profitability
• Construction overheads
• Change order management
• Progress billing
• Revenue recognition
• Cashflow forecasting
• Payroll system

Believe me, these concepts are far away from a technical understanding of the generic accountant/bookkeeper. So, based on my experience I thought to compile a list of qualities that must be assessed before you hire someone as a construction bookkeeper.

So, are you excited? Let’s dive!

1-Solid technical concepts related to construction

The construction accountant must have understanding about technical accounting aspects like retainage, AIA contract, job costing, expense tracking, and profit calculation etc. These technical aspects can not be expected from the generic accountants/bookkeepers.

2-Expertise in construction software

The bookkeeper should be able to understand and manage the books using accounting/construction software. Based on my bookkeeping experience, it’s recommended to use the QuickBooks online for managing your construction books.

3-Expense tracking skills

Expense tracking skills might sound clerical but it can be challenging to track expenses when there are large number of expenses.  Further, it’s equally challenging to keep organized expense record against specific contracts/agreements with the vendors.

4-Strong communication skills

Construction bookkeepers need to clearly explain the project’s progress, financing structure/needs/utilization, and all other aspects of the project. Hence, there is a need to ensure the bookkeeper is skilled to ensure effective communication. Basically, it’s the duty of the construction bookkeeper to ensure investors are aware of the facts and figures.

5-Detailed oriented

This skill is more desirable from construction bookkeeper as there are variety of expenses and line items. It may sound simple but is challenging to keep organized and detailed record when there are multiple projects being constructed simultaneously.

6-Easy access

The bookkeeper should be easily accessible. So, it’s recommended to hire full time bookkeeper who is always available to entertain your queries and reply you on timely basis.

Conclusion

Construction bookkeeping is highly challenging and requires more effort & competence than general bookkeeping and accounting.

To become skilled construction bookkeeper, you must be equipped with solid technical skills and understanding like retention, AIA contracts, expense tracking, project budgeting, and payroll etc.

Similarly, a construction bookkeeper is expected to have extensive expertise in accounting software, strong communication skills, a detailed detail-oriented personality, and be easily accessible.

So, if you are looking for a competent, experienced, and qualified team of dedicated construction bookkeepers, we are available to ensure you get reliable and quality services. Let’s get connected!