Top 5 year-end accounting to-do’s for construction teams
It’s the most wonderful time of year … until you start thinking about all the accounting processes you now have to handle.
Sure, we’re more than a month away from 2021, but it’s already time to start thinking ahead to closing the books for 2020. Bookkeeping and tax planning can be an intimidating process, especially for small business owners. However, you don’t have to be a certified accountant to organize your previous financials for future success.
That’s because Buildertrend has your back.
We’ve broken down this process into five manageable to-do’s. Completing each will ensure everything goes smoothly and you’re ready to ring in a new fiscal year.
1) Reconcile your bank accounts and credit cards
First and foremost, it’s critical to make sure what you have in your financial statements correlates with your bank and credit card accounts and your year-end statements. If you are using accounting software like Xero or QuickBooks, it’s also important your ledger balance matches, too.
Buildertrend’s Budget tool helps you keep track of all these financial details. Accurate as a bullseye, this feature tracks time clock labor, bills, purchase orders and more – right from our smart homebuilder app.
2) Review your profit and loss statement
You’ll want to review your profit and loss statement when it comes to year-end accounting. This is a good reminder to see how you’re spending your cash flow but also if your expenses are correctly categorized.
Fortunately, if you use an online accounting software like Xero or QuickBooks, these programs can sync directly with your bank account or credit card statement and help you categorize your expenses. Return to the Profit and Loss Review after you reconcile your bank accounts, receipts and other potential concerns.
Even better, these two popular accounting systems integrate with Buildertrend, the leading construction project management software. That means your financial information is automatically imported and organized between both platforms, letting you see your cash flow in real time. With Buildertrend, you can manage your projects, people and profits from the palm of your hand.
3) Collect W-9s
Did you use subcontractors this year? If so, you’ll have to collect W-9 forms from them, which can be used as a paper trail to track your expenses for the IRS. Additionally, this is a way for the government to keep track of subcontractors and their income.
You’re required by law to send and fill out a 1099 form every vendor you’ve spent $600 or more for services. Then that 1099 must be completed and sent to the IRS by Jan. 31 of the following year. Fortunately, your accounting software solution will most likely have a line item for all 1099 vendors and contractors. It’s also important to note that there’s a new form employers will need to start using starting in January. Instead of reporting nonemployee compensation (NEC) via Form 1099-MISC, you must complete and file Form 1099-NEC by January 31, 2021 (or the next business day).
In addition, Gusto will file contractor 1099s on your behalf. Gusto is the one place construction businesses like yours can go to onboard, pay, insure and support their teams. Buildertrend has partnered with this leading HR provider to offer more value to our customers and help take the work out of workforce management.
4) Gather and organize your receipts
It’s critical to keep track of all your receipts throughout the year. A mountain of paperwork sitting atop your desk is the last thing your CPA wants to see.
Buildertrend is an easy way to organize all your expenses. With our tech, you can say goodbye to mountains of receipts and bills spread out all over your desk. Snap a picture of any receipt and bam! It’s stored right in Buildertrend by job. That should allow you to more easily account and categorize many of your expenses, which helps streamline financial processes.
No more worrying about losing a receipt or, worse yet, holding onto one with ink that’s faded before you record it.
5) Check your payroll
When it comes to payroll, a few common areas to watch out for if you’re worried about end-of-year accounting are withholding taxes for fringe benefits, deferred compensation and seasonal bonuses.
That’s where Gusto and Buildertrend come in …
Our partnership helps support your business by handling common HR tasks such as payroll, onboarding and benefits. Buildertrend’s financial tools and integration with accounting software guarantee every cent is tracked throughout the year while Gusto is payroll done the smart, easy way.
Together, both set your team up for success when it comes to closing the books. Sign up and start taking advantage of Gusto’s services for Buildertrend customers.
While these five to-do’s set a solid foundation for year-end accounting, be sure to also read Gusto’s entire checklist. Completing accounting-related tasks for your company may sound daunting, but these simple steps take the stress out of it.
Just check your way to a happy holiday season – technology like Buildertrend and Gusto are on your side!
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