Bookkeeping in the Construction Industry

(Editors note: Every few weeks we will get one of our bookkeepers to post a diary note to give an insight into being a bookkeeper- here’s the first one)

I’ve had a very satisfying week.

I have started doing the bookkeeping for a new client in the Construction Industry.  Until now, this client has been keeping track of their retentions via a spreadsheet.  By implementing a few small changes, I have established a system for them to track their retentions within MYOB.  This method now allows them to accurately show their retentions on their Balance Sheet at any point in time, whilst not bulking up the Accounts Receivable & Accounts Payable modules with outstanding balances up to 1year old.

As a result of this new method, I have located a large sum of unclaimed retentions for my client, that had previously been misplaced on the spreadsheet.  My client has now be able to reclaim this amount back.

…all part of the job satisfaction.

September 29, 2008 | Filed Under A Bookkeepers Diary 

Comments

3 Responses to “Bookkeeping in the Construction Industry”

  1. Bookkeeping Software on December 21st, 2008 4:20 am

    There is nothing quite as satisfying as identifying a load of unclaimed retentions.
    The best bit of all is reporting this info back to the client :)

  2. JPAP Bookkeeping on June 7th, 2009 12:32 pm

    Absolutely true! I also have a client in the building industry that was using a spreadsheet set up by his wife to track all sales. Due to incorrect forumalae, my client was missing around $8,000 in payments not received. Once i contacted his debtors in relation to the unpaid invoices, they paid immediately – leaving me with a VERY happy client!

    Cheers.

    Jeremy

  3. Dion Bright on December 14th, 2009 9:47 pm

    Hi,

    I found your post searching for info on setting up QB and creating management accounts for a small construction company. We have a turnover of about $3m and are growing quickly. Do you know of any good book or web resources to assist.

    Your findings of misplaced retentions is exactly what I’m facing. My client is currently unsure if they’re invoiced and received the entire estimated amount.

Leave a Reply