2. Beyond the Numbers…
TAG provides valued financial and business resources &
counsel for companies and individuals on the move.
TAG supports and strengthens your company’s accounting department
and management with outsourced bookkeeping, controller, and CFO
services.
Whether you are a CFO who could use a quality controller once a week,
a controller who needs bookkeeping assistance, or an office manager
looking for higher level finance and accounting oversight, TAG can fill
the need.
From sales to implementation, training to consulting, TAG’s team of
certified consultants work to improve your efficiency and reporting
capabilities with the best accounting software for the building industry.
TAG is an Authorized Reseller with a team of Certified Consultants for
Sage Timberline Office, Sage Master Builder and Contractor V.
3. January 30, 2013 - Understanding Your Construction
Financial Statements
February 27, 2013 - Job Costing & Accounting
March 27, 2013 – Banking & Bonding Management
April 24, 2013 – Tracking your Field Production
May 29, 2013 – Best Practices in Construction
Accounting Software
June 26, 2013 – Construction Financial Management
Boot Camp
4. Purpose:
The primary purpose of accounting is to provide a
system for tracking the financial activities of a business
and to provide management with meaningful and
relevant information to make business decisions. The
secondary purpose is to provide financial information to
third parties regarding the financial position of the
business.
5. Accounting Cycle
The accounting cycle is usually twelve monthly
periods within a year. A Corporation can choose a
calendar year or a fiscal year, however an individual,
partnership, or S Corporation typically must use a
calendar year.
6. Keys to Accounting:
There are a few keys to accounting that can help to
provide an accurate and relevant accounting system
such as:
KISS (Keep it Simple Stupid!)
Cash Is King
Billings are Money
Accounts Payable Process
Payroll Processing
Reconcile and Review
7. KISS (Keep it Simple Stupid!):
There is no need to overcomplicate the process. If
you don’t understand how it’s working, you won’t
understand what it’s telling you. Keeping this in mind
may also keep the cost to produce the information
much more manageable. An inexpensive system
such as QuickBooks may accomplish the objective
instead of a more powerful and expensive program.
8. Cash is King
Accounting for the money received and the money
spent will accomplish the major portion of the
process. Reconciling the bank account activity to the
accounting records on a monthly basis will help to
ensure that all cash activity has been captured.
9. Billings are Money:
Timely and accurate billing is the key step to creating
cash. Billing should be done on a regular basis and the
collection of those billings should be closely monitored.
10. Accounts Payable Process:
Nobody likes to pay out money, however the worst part
is paying bills you didn’t think you owed (like taxes).
Payables that are not processed timely and accurately
will result in: billings being processed late; planning and
budgeting will be useless; and unwanted surprises that
persist.
12. Reconcile and Review:
Cash, investments, accounts receivable, accounts
payable, credit card liabilities, and other significant
balance sheet accounts should be reconciled to a third
party statement on a monthly basis. The activity in
these accounts and the overall financial statements
should be reviewed on a monthly basis for
reasonableness and used as a basis for planning and
for making business decisions.
13. Users Of Financial Statements:
Besides management, there are other people or
organizations that request and/or review the financial
statement of the company. A few examples are as
follows:
• Bankers
•Surety Company
•Shareholders
•Tax Agencies
14. Purpose:
The purpose of job costing is to provide
accounting of contract performance and to
assist in managing the job, as well as to
provide management with relevant information
regarding contract activity in order to make
business decisions .
15. Contract Cycle:
Contract cycles can vary significantly from
contract to contract as well as from the type of
work performed. Shorter contract periods may
make the job costing process a little more
difficult, but no less important.
16. Keys to Job Costing:
The “keys to accounting” previously discussed also
applies here, however, there are a few other issues to
consider such as:
Identify Key Cost Components
Tracking Cost Components
Performance Measurements
Monitor Results
Make Adjustments
17. Identify Key Cost Components:
Labor, materials, equipment, subcontractor costs are
the typical components of job costs. Identify any other
significant costs that relate to your contract
performance. These would typically be the same costs
you estimate in the bid process.
18. Tracking Cost Components:
Determine a method to track the costs by job keeping in
mind the keys to accounting discussed above.
Consideration should be given to the accounting system
in place and its ability to generate and/or track cost flows.
Include bid and revised estimates within the job cost
system.
19. Performance Measurements:
When designing the system, consideration should be
given to including performance criteria within the job cost
system. Items such as pounds/yards, etc.; per man
hours; material per square foot, etc. These performance
measurements may provide you with additional
information as to job performance outside the typical
cost information.
20. Monitor Results:
Review the results on the job to assist in evaluating
performance, as well as assist in estimating future bids
and making business decisions.
21. Make Adjustments:
As the business and/or the jobs change, the job cost
system may need to be modified to meet the new
changes. If you’re monitoring the results on a regular
basis, the adjustments needed should come to light
22. Accounting & Job Costing-
Rule of Thumb Strategy:
1. Keep the accounting and job cost process simple.
2. The information produced should be relevant and
understandable.
3. Review and use the information to make individuals
accountable and to make business decision.
4. Accounting and job costing are not the answers but
they can assist in getting you the answers.
23. January 30, 2013 - Understanding Your Construction
Financial Statements
February 27, 2013 - Job Costing & Accounting
March 27, 2013 – Banking & Bonding Management
April 24, 2013 – Tracking your Field Production
May 29, 2013 – Best Practices in Construction
Accounting Software
June 26, 2013 – Construction Financial Management
Boot Camp