You may be starting your own business or have been a contractor for years. Either way, you’ll need to manage your finances well to achieve and maintain success. Many contractors use tools like QuickBooks to help them streamline their accounting.
If you’re one of them, you may ask, "Do I still need an accountant?" As a Certified Public Accountant (CPA) with extensive experience in the construction industry, I'm here to shed light on this topic and answer that question.
Let's look at what QuickBooks can provide your contractor business, and why you may still need a CPA.
There’s no doubt that QuickBooks is indeed a powerful tool for managing your financial data. It allows you to track income and expenses, and even generate reports that give you insights into your business's financial health.
However, it's essential to understand that QuickBooks is only a tool. It’s not a substitute for professional accounting expertise.
While it can automate many tasks, the interpretation, analysis, and strategic financial planning still require human expertise.
Related: Top 5 Construction Accounting Software Options for Contractors
The construction industry presents unique financial challenges that business owners must keep an eye on. Managing project costs, tracking subcontractors, and handling complex billing processes are probably important items on your agenda.
While QuickBooks is a powerful accounting software, it does have its limitations when it comes to these specific challenges. For instance, tracking subcontractor compliance with insurance requirements can be cumbersome in QuickBooks. Additionally, it may not provide you with a detailed project cost analysis.
An experienced accountant who specializes in working with contractors can provide valuable insights and strategies to optimize your financial operations.
They can also help you comply with industry-specific tax regulations and ensure you're maximizing deductions.
Related: 9 Reasons You Should Choose a CPA Firm that Specializes in Your Industry
Tax laws and regulations can be a confusing maze that sucks up your precious time. Plus, they vary from one state to another. A CPA adept in contractor requirements can help you stay compliant and minimize tax liabilities. They can also assist in keeping meticulous records, which is essential if your business is ever audited.
QuickBooks alone may not provide the hands-on guidance or expertise needed to ensure you're fully compliant with tax laws and regulations.
Your construction business's financial success hinges on more than just bookkeeping, like planning how you’ll scale your business.
CPAs offer a broader perspective you can’t get from QuickBooks. They can provide insights into investment opportunities, manage cash flow, and mitigate risk that helps create long-term financial strategies. These strategic insights can be the difference between a thriving construction business and one that merely gets by.
Automating tasks is one of the advantages QuickBooks gives you, which saves time and reduces the risk of errors. However, managing your company’s finances goes beyond data entry. A CPA can provide you with real-time financial updates and help you make informed decisions promptly.
QuickBooks offers a one-size-fits-all solution, while your construction business is unique. An accountant can pick up where QuickBooks leaves off. They can weigh your specific needs and circumstances and take into account your business's size, industry niche, and growth potential. Using all this information, they can provide personalized guidance and expert financial advice.
Related: Retirement Planning for Contractors: 12 Things to Start Doing Today
We firmly believe QuickBooks is a valuable tool for managing your finances efficiently. Still, it shouldn’t be expected to replace an accountant. The partnership between QuickBooks and a skilled accountant can provide serious advantages for your business. Accountants bring specialized knowledge, industry-specific expertise, and strategic insights that go beyond the capabilities of software alone.
By combining the power of QuickBooks with the guidance of a qualified accountant, you'll have the tools and expertise needed to build a financially sound and successful construction contracting business.
So, to answer the question, "Do I need an accountant if I have QuickBooks?" the answer is a resounding "Yes!"
Trust Chaliff + Associates to be your experienced partner in payroll, bookkeeping, tax assistance, and forecasting and planning. We’ll help you stay on top of your books and taxes so you can focus your energy on scaling your contractor business and serving your customers. Reach out today for a complimentary consultation with one of our professional CPAs.