When I hear this one, it usually means there’s a delay in entering important data. When one or more data entry areas get behind, it creates a cascade of problems, making it almost impossible to check the status of your jobs.
Let’s start with billing—when billing is entered in Excel or Word documents, it has to be re-entered in the accounting software (correctly) or you can’t tell how much is billed or what your receivables are, let alone retention. The most common error here is entering the Net Due instead of the Billing Amount.
Outsourced Payroll can result in delayed job costs. If you use an outside service, be sure to stay up-to-date with the entries and posting so all job costs are current for the PM’s and your cash is correct. Consider using our F.I.T. System to pull time straight into payroll to cut down on the data entry time. You might consider if this is a good time to bring payroll in-house.
Many of our clients are quick to get those checks deposited ASAP! Be sure to make the Cash Receipt entries right away, as well. That keeps your cash current and your AR Aging report usable.
The original budget needs to be in place, and all approved change orders need updated budgets, too. Approved change orders should be entered and reflected in the 3-5 Contract Summary. This makes the information available for Over/Under billing reports, Budget to Actual cost reports, and Job Summary reports.
By keeping the day-to-day entries current, you’ll know what’s going on with your cash and your jobs. Need help on any of these points? You know where to find us. – CMW