Our New eBook is out! More than 15 pages filled with Marketing, Accounting, and Production tips, checklists, and best practices that you can use year-round for your construction business success.
Free Download here.

FEA Randal And Train
Call Us At 1-800-361-1770
Bookkeeping Trial Test Drive
Outsourced Accounting
Contractor Bookkeeping Templates For QuickBooks And Xero
Construction Accounting Academy
  • There are no suggestions because the search field is empty.

How To Track Income In Your Bookkeeping System

Posted by Randal DeHart on Tue, Jun 18, 2019

The one burning question contractors want to know: When is it income?

When money comes into the business, at some point it turns into income. " Money goes in and out of my business and I don't understand when it is income and when it is not ". Without proper tracking and matching of income and expenses, most construction companies never know if they made a profit until the job is over.

Workplace with keyboard cup of coffee and graphs-1

The Diagram Below Shows Five Ways Money Comes In

  1. Job Deposit - Customer signs a contract and gives the contractor a down payment check - (Not Income)
  2. Invoice - Contractor sends customer an Invoice for the work done and the customer pays - (Income)
  3. Loans - Contractor, outside investors, banks loan money to the business - (Not Income)
  4. Refunds - Contractor returns unused material gets money back - (Not Income)
  5. Rebate - Contractor gets a rebate when buying a new truck - (Not Income)

Money In Fast Easy Accounting

The Diagram Below Shows Five Ways Money Goes Out

  1. Labor - Payroll and taxes because contractors can get more make good money with qualified labor - (Not Income)
  2. Material - Takes money to make money and you need material to build and repair things - (Not Income)
  3. Other - Costs you need to operate a mobile business like construction - (Not Income)
  4. Subcontractors - Do what you do best and outsource the rest - (Not Income)
  5. Overhead - Everything not directly related to field work - (Not Income)

 Money Out

The Diagram Below Shows When It Is Income

    1. Invoice - The only time when money coming in is - (Income)
    2. Job Deposit - Applied to an Invoice the money is - (Income)
    3. Customer Payments - Applied to a complex Invoice it is - (Income)
When Is It Income Fast Easy Accounting

 

I hope this quick overview helps answers some of the questions you may have about construction bookkeeping and accounting. This diagram is intended for residential contractors. Commercial contractors Invoicing is a bit more complex

If you enjoyed this you may want to review the 80/20 Rule and our Cash Flow Diagram


About The Author:

QuickBooks-Trainer-Randal-DeHart-PMP-QPA-Fast-Easy-AccountingRandal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor, and QuickBooks For Contractors Expert. This combination of experience and skill sets provides a unique perspective which allows him to see the world through the eyes of a contractor, Project Manager, Accountant and Construction Accountant. This quadruple understanding is what sets him apart from other Intuit ProAdvisors and accountants to the benefit of all of the construction contractors he serves across the USA. Visit http://www.fasteasyaccounting.com/randal-dehart/ to learn more.

Our Co-Founder Randal DeHart - Is a Certified PMP (Project Management Professional) with several years of construction project management experience. His expertise is construction accounting systems engineering and process development. His exhaustive study of several leading experts including the work of Dr. W. Edward Deming, Michael Gerber, Walter A. Shewhart, James Lewis and dozens of others was the foundation upon which our Construction Bookkeeping System is based and continues to evolve and improve. Check out our Contractor Success Map Podcast on iTunes. 

 

OUTSOURCED ACCOUNTING FOR 
THE BUSY CONTRACTOR
IN A MOBILE ENVIRONMENT

                            Bookkeeping Trial Test Drive  Contractor Bookkeeping Templates For QuickBooks And Xero

                            Outsourced Accounting  1-800-361-1770

 

Download the Contractors APP today from the App Store or Android Store

Access Code: FEAHEROS

Click here to download the App on Android:

Click here to download the App on iOS:

Simply scan the QR code or search for ‘MyAccountants’ in the App Store and enter the Access code: FEAHEROS to utilize the powerful App features and capabilities, and benefit from having our Construction Accounting App at your fingertips, 24/7."

PS: Even if you are not a Construction Contractor you will find a plenty of benefits in the app so we invite you to download it too! It's Free so why not?

 

Topics: Payment Collect, Contractor, Contractor Tips, finance, Contractor Operating Tips

QuickBooks Setup And Chart of Accounts For DIY Contractors
Download Our Free App For Construction Contractors

click to download the Contractors APP now from the App Storeclick to download the Contractors APP now from the Android store

Access Code: FEAHEROS

accounting articles

Subscribe by Email

How Can We Help?

 
Contractors Bookkeeping And Accounting Services

Who We Help

How We Help

Next Step

FAQ's

Contractors Bookkeeping And Accounting Services

Outsourced Construction Accounting Services For Contractors All Across The U.S.A. By Fast Easy Accounting 206-361-3950

Serving Construction Contractors
Across The U.S.A
Including Alaska
And Hawaii

Podcast On iTunes
 
Click Here To Listen In iTunes
Contractor  Success M.A.P.
Contractors Bookkeeping And Accounting Services

Remote Access Your QuickBooks  Using Secure Servers

Outsourced Bookkeeping Services For Contractors At Fast Easy Accounting

Highly Recommended by Locals On Alignable

Most Popular Posts

Read the Latest:

Browse by Tag

badge

Blog Suggestion Box

We Remove Contractor's Unique Paperwork Frustrations

Quickbooks certified proadvisor

Xero-Accounting-Services-Fast-Easy-Accounting

Financial-Intelligence-And-Performance-Reporting-Tool-Fast-Easy-Accounting Hubdoc-Document-Collection-and-Management-System MBA Member Fast Easy Accounting 206-361-3950
 
contractor-success-map-podcast-listen
 
Don't forget, you can hire our services at FastEasyAccounting.com
 
 
How To Use Our Services