Client Background
A small construction firm specializing in high-end home remodeling projects had messy QuickBooks records that made financial tracking impossible. The business had been using multiple bank accounts, delayed invoicing, and poor job cost tracking, leading to inconsistent cash flow and uncollected payments. The client hired Development Theory to help with a QuickBooks clean-up for a construction company.
The Challenge
Job Costing Not Set Up Properly: Labor and materials were not linked to specific projects, making it unclear which jobs were profitable.
Overdue & Uncollected Invoices: Customers owed money, but unpaid invoices weren’t tracked.
Disorganized Chart of Accounts: Expenses were lumped together, preventing tax deductions.
Payroll & Subcontractor Payments Misclassified: Some contractors were mistakenly categorized as employees, creating tax risks.
Our Approach
Job Costing & Project Tracking Fixes: Implemented QuickBooks job costing features to link expenses to projects.
Accounts Receivable Clean-Up: Identified and collected over $35,000 in unpaid invoices.
Chart of Accounts Restructuring: Reorganized income and expense categories for clear tax deductions.
Contractor vs. Employee Classification Correction: Fixed misclassified workers, ensuring tax compliance.
Financial Reporting Optimization: Created profitability reports per job, helping the owner make smarter bids.
The Solution
Ensured accurate job costing, improving profit tracking.
Recovered $35,000 in unpaid invoices, boosting cash flow.
Fixed payroll classifications, preventing IRS penalties.
Simplified financial reports, giving the owner a clear picture of profitability.
Results & Impact
Profit margins increased by 15%, thanks to better expense tracking.
Cash flow stabilized, ensuring consistent payroll and materials purchasing.
Reduced IRS audit risk, thanks to proper contractor classifications.
Owner now makes more informed pricing decisions, leading to higher revenue.
Client Feedback
"I had no idea I was losing so much money to unpaid invoices. Now, my books are clean, and I actually know which jobs make me money!"
Development Theory Can Help Business Owners Like You
Are your accounting records a mess? Would you like help getting them straightened out? Our QuickBooks Clean-Up service gets one year of your historic accounting data balancing again. Don't wait until tax season to deal with your books!
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