5 Practical Accounting Tips

Whether you’re a brand new septic, sewer, or portable restroom services contractor or an experienced industry veteran, it’s always a good idea to upgrade your accounting operations. As a hard-working contractor, accounting may not be your passion — but that doesn’t mean that you have to settle for subpar operations.
In fact, with a few strategic accounting practices, septic, sewer, and portable restroom contractors just like you can turn lackluster accounting tasks into efficient, profitable processes. Take a look at the following five transformative strategies you can use to revamp your accounting practices in no time.

1. Open Multiple Checking Accounts
Lay a solid foundation for your accounting practices by prioritizing organization. With a busy schedule to stick to, clients to please, and contractors to keep track of, you already have plenty of responsibilities on your plate. The last thing you need to worry about is whether or not you have enough money to stay afloat. In the interest of maintaining a clear idea of your available funds, expenses, and incoming payments, it’s beneficial to have multiple checking accounts.
Septic, sewer, and portable restroom contractors may find it helpful to open three checking accounts, each serving its unique purpose. All of your earnings should be sent to a receivables account, from which you can send funds to your dedicated payroll account or your petty cash account. This strategy minimizes the risk of accidentally overestimating your funds and landing yourself in a sticky situation.

2. Keep Your Receipts
It may seem obvious, but one of the best ways to keep track of your company’s expenses is to keep your receipts. Although many of your company’s expenses are likely visible online, it can be helpful to keep physical copies of receipts as well. This practice will give you and your team a realistic idea of how much money is being spent each month, which helps you stay within your budget. Particularly if your team has multiple contractors, ensure that everyone understands the importance of keeping and turning in their receipts on time.

3. Invest in Accounting Software
In today’s fast-paced world, investing in accounting software can save you significant time, resources, and peace of mind. There is an endless supply of accounting software options available to contractors just like you, depending on your specific needs and preferences.
For example, QuickBooks offers reputable accounting software that can complete time-consuming manual tasks in the blink of an eye. Xero is yet another excellent option for small business owners that offers plenty of in-site resources and an easy-to-navigate interface.
FreshBooks is another accounting software that allows you to customize invoices, track time, manage expenses, and much more. Finally, Wave is free accounting software that provides contractors with a pleasant user experience and plenty of customizable resources.

4. Keep Several Copies of Your Documents
In addition to investing in reliable accounting software, it’s also helpful for contractors to keep multiple copies of important financial documents. Contractors should not only store their bills, tax forms, and contracts on a secure, cloud-based platform but also in a safe physical location.
By keeping an organized folder or file cabinet for your accounting forms in-office, you have quick and easy access to your documents whenever you need them. When you need convenient, on-the-go access to your files while working remotely or helping a client, simply login to your cloud-based platform.

5. Stay Informed All Year Long
Last but not least, contractors must stay up to date on their accounting practices all year long — not just during tax season. Some of the most serious accounting oversights occur because business leaders simply aren’t paying attention. By reviewing your accounting processes frequently, you can limit the risk of making costly mistakes that could harm your company in the long run.
Of course, you must stay on top of your accounting operations during tax season, but the year-round focus will help your business grow and thrive for years to come. For more helpful tips that will benefit your septic, sewer, or portable restroom business, check out American Liquid Waste magazine today.

Sources
https://www.northcarolinabookkeeping.com/blog/10-bookkeeping-tips-for-contractors/
https://mcleodaccounting.ca/accounting-tips-for-installers-contractors-and-installation-specialists/
https://www.investopedia.com/best-accounting-software-for-small-business-5069679
http://www.americanliquidwaste.com

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