Opening up a business as an independent contractor can be an exciting ordeal. After many long years of exams, countless apprenticeships and some real world experience you finally get to call your own shots. You get to take the projects you want to do and, at the end of the day, you have a business that you can call your own. It's a great job, but like any small business owner, being an independent contractor carries a certain amount of financial responsibility. Most contractors choose to hire out-of-house accountants to help them manage their finances. Though it is a perfectly acceptable method of financial management, not all accountants are equipped to handle your situation. Here's how a contractor accountant can help meet your very specific accounting requirements.
Contractor Accountant Services - Why Are They Necessary?
Accounting systems are absolutely necessary for those small businesses who wish to track their income, expenses, liabilities and assets. Most systems are fairly similar (maybe with a few alterations here or there) but they all share the same basic rules and guidelines. That is, unless you work in the construction industry.
If you work as an independent contractor you should know that your accounting needs are quite different. Complicated construction industry regulations might be overlooked by the average accountant which means you may want to put your trust in someone with more industry specific knowledge; like a contractor accountant.
A contractor accountant has the knowledge and expertise to help your small business navigate through all of that red tape. Tape which has a habit of turning into fines and litigation if your accountant fails to deal with it properly. When you invest in a construction specific accounting program you should expect the following services:
- Accounts Payable
- Accounts Receivable
- AIA Billing
- Equipment Tracking
- General Ledger
- Job Budgets
- Job Cost Management
- Job Reports
- Payroll (both Certified and Union)
- Retainage Payable
- Retainage Receivable
- Taxes (check out these 40 simple tax deductions if you haven't filed yet)
- Time/Material Billings
- Union Reports
- Work in Progress
Hiring a contractor accountant and investing in a construction specific accounting program will ensure that your finances are handled appropriately. That will make it possible for you to focus more on your next project rather than fighting a pending fine. If you have any further questions about contractor accountants or business tax planning please feel free to give us a call at 516.746.6322.