Building projects can be huge endeavours - from bricklayers, to concreters to purchasing officers, most building projects need a small army working together to construct and to finish it.
Every ship needs a captain to steer them the right direction however. And just like in any other team, there’s always that one person who leads, who wears the captain’s armband - the general contractor.
A general contractor has enough to manage without adding bookkeeping to the list
A general contractor is someone who acts as the manager of a building project from the moment the first brick is laid all the way to its completion.
And as captain, the general contractor has a lot on their plate - they’re easily the most stressed-out person on the entire project! Some of the responsibilities of a GC include:
Sourcing materials, equipment and labour
Being the first point of contact with clients
Hiring appropriate contractors and specialists
Ensuring safety on the jobsite
It’s that last task we’re going to be focusing on. GCs are responsible for getting a lot of admin work done… and that includes bookkeeping.
Some GCs might delegate the different bookkeeping tasks to other members of their staff, while others might decide to do the number-work themselves!
And in many cases, bookkeeping ends up landing on the desk of someone who may not have a clear understanding of the financial side of business.
Take it from us: this is a bad idea, especially when GCs most certainly have the opportunity to outsource the business’ bookkeeping needs to a qualified third-party provider.
If you're a general contractor who is looking at this option, Maximum Business Solutions has come up with reasons why you should employ a professional bookkeeper for your business.
Bookkeepers keep your accounts transparent and accurate
GCs have to work extremely hard to keep construction costs within the budget set out by the client. What the client has paid needs to cover all construction expenses and deliver a healthy profit - otherwise, you could be looking at a sizable loss!
That means choosing affordable materials, negotiating contractor fees and being as efficient as possible with construction to bring costs down.
And of course, a general contractor can’t do that without accurate financial information and records.
A lot rides on those records:
Is the project coming in under budget?
Where are your expenses coming from exactly?
Is there deadweight?
Are there any expenses you can afford to cut?
Naturally, maintaining clear and accurate records is essential for the success of any construction project.
This is where hiring a certified bookkeeper comes in.
A qualified bookkeeper saves you the uncertainty of leaving finances with your admin staff...or of ding it yourself! When you work with a qualified bookkeeper, your accounts are kept up to date and accurately maintained - your bookie will also keep comprehensive records of all your business income and expenditure such as payments, receipts, purchase orders and invoices.
If you want your construction project to go smoothly and under budget, getting your project finances looked after by a professional is a must - you can’t afford to just fob it off to any old member of your team!
Time is money... and so is money!
Time is money after all, and if you or your team aren’t qualified or experienced enough with bookkeeping, that means a lot of time on the clock being wasted poring over your accounts, making sure the numbers add up and are correct.
Talk about a waste of time!
With a professional bookie on your side, you and your team can get back to your bread and butter - managing the building projects you are currently involved in, ensuring the highest standards and ensuring every single individual involved is safe.
It doesn’t even have to be all that expensive either... at Maximum Business Solutions, you pay for what you need! We can tailor a bookkeeping package catered to the different circumstances your business finds itself in.
Working with a bookkeeper
As a general contractor, you work with different professional subcontractors who are considered experts in their respective fields. We’re talking plumbers, electricians and air conditioner contractors, for instance.
While it’s important for general contractors to find subcontractors who charge an appropriate rate, what’s even more important is ensuring their skills are up to scratch: you wouldn’t trust a dodgy plumber.
When you decide to work with a bookkeeper, the same principle applies. Hiring a professional means working with someone who is highly skilled and knowledgeable in their field, who boasts not only a ton of experience, but also bucket-loads of initiative, too.
A professional business bookkeeper understands the best practices and solutions to your needs, and can implement systems and procedures that take precious hours off your hands. In turn, this allows you to focus on your major responsibilities, knowing that your accounts are as safe as houses.
Are you a general contractor looking for a business bookkeeper in Melbourne?
Being a general contractor can be stressful. Not only do GCs and their teams have a lot of responsibilities under their umbrella, but oftentimes the success of entire construction projects can rest on their shoulders.
So as a general contractor, you’ll want to make sure that all the finances and accounts are accurate and up-to-date so you can make the right decisions.
If you're considering seeking the help of a bookkeeping expert to assist you, you can always count on Maximum Business Solutions!
Our Beaumaris-based team works with businesses of all sizes across Melbourne.
If you’re a general contractor in Melbourne and you wish to learn more about how Maximum Business Solutions can help you, we’d be happy to chat with you. Give us a call on (03) 9589 0128 and let’s catch up over coffee.