Conversations That Convert
Construction Accounting: Clean Books with Erin Andrews Erin reveals how construction accounting transforms messy books into confident decisions. GREAT AUNT BERTHA PROBLEM:→ Builders short-cut on bookkeeping→ Friend's mom does it→ Doesn't know construction accounting Results:- Overpay/underpay tax- Can't get loans- Can't project cash flow- Don't know overhead DIAGNOSTIC:- Current books review- Prior year tax returns- Process examination- Takes several hours JOBTREAD INTEGRATION:Common issues:- Duplications- Cost codes don't match- Revenue counted 2-3x- Fix integration first- Then see real margins TARGET MARGINS:Remodelers: 40-50% grossAverage: 25-35%Home builders: 30-35%Net profit: 10-15% (w/ owner salary) Cost of goods:Labor, PM costs, warranty MARKETING BUDGET:Builders: 1-2%Remodelers: 2-3%$1M remodeler: ~3%$5M remodeler: ~1.5-2% MONTHLY SERVICE:- Books up to date- Reconciliation- Monthly reports- Payroll- Workers comp audit- Tax planning CONSTANTLY WATCHING:Sign huge contract?Reevaluate tax situationNo surprisesERIN'S ADVICE:- No TikTok tax advice- AI isn't ready yet- Get accounting togetherLEVEL ACCOUNTING:- 19 years business- 5-6 years contractors- 34 states served levelaccountingfirm.com [https://levelaccountingfirm.com/] Erin Andrews on Linkedin [linkedin.com/in/erinhandrews]#constructionaccounting #taxplanning #jobcosting
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