BOOKKEEPING SERVICES --


Frequently Asked Questions - Bookkeeping Services



Start-Up

How long does it take to get the accounting set up?

The set up time will vary with the amount of work to be accomplished.  A typical start-up with very little catch-up will take about 10 hours.

  If Builder-Resources is tasked with starting the accounting in November and catching up all accounting and job-related expenses since the first of the year, that work could easily take 20 hours or more to organize.   We can discuss the anticipated time and costs of the initial work before we get started so both parties have a good idea of the up-front costs.  We want you to be comfortable from the very beginning of our relationship.  

The process usually take 2-3 months to smooth out.  At that point we know what you want and you know what we need to provide the information you want.


How do we start a new project?

You would complete a Job Start Summary Sheet for each project, (see copy here).  Then, as transactions occur, each Transaction Source Document would be coded with the appropriate information, scanned at your office and sent to us electronically.  Overhead expenses such as office and managerial payroll, rent, utilities, etc can be forwarded to us individually, or noted on the monthly bank statements and submitted that way.


Is the per-new-start fee a start-up fee?  What does it cover?

The new start fee is a one-time charge that covers all current and future job accounting transactions related to a specific project.

There are two levels of start fees, based on the square footage of the project.  Currently, the start fee for projects less than 3000 SF is $299.  For projects of more than 3000 SF, the start fee is $450.

The fee covers all bookkeeping responsibilities relating to the project.  We have chosen to go to the one-time fee because this model makes it easy for you to add a known cost for bookkeeping to your job estimate.


Job Costing

Do you utilize a true job-costing accounting system when you do the start-up/set-up?

Builder-Resources uses a true job costing system of accounting for any of the accounting we do.  The accounting programs we use are Quickbooks Premier Plus Contractor and Peachtree Accounting - Contractor Edition.  Both programs support job cost accounting and are recognized as leaders in accounting applications for builders.

 The accounting program we use depends on which program the client intends to use for their own accounting.  We begin our bookkeeping relationship with the assumption that, at some point, you will bring your accounting function in-house.  We intend to make that transition as easy as possible.


Why do I have to code supplier invoices when I send them to you?

We ask that the client code each transaction item so we can properly enter the information.  Coding includes a line item designation and a job allocation.  We set up the line items (your General Ledger) as part of the initial Set-Up.  The transaction items are then scanned by the client and the electronic files are sent to us or the originals are sent to us for scanning and copies of the electronic files are sent to the client.  


What do you do with costs that can't be assigned to one specific job?  Like rent, utilities, etc.?

We do not generally include indirect expenses such as rent, office salaries, utilities, etc. in the job-costing procedure. This is especially true of Catch-Up projects, as it is very difficult to properly allocate these expenses after the fact.

However, if you wish to include these costs, and can provide the line-item breakdown you wish to use, we can and will include the indirect costs in your job-costing reports.


General Bookkeeping Information

What does the monthly fee cover?

The monthly fee covers the ongoing non-job-specific accounting for your company.  This would include the accounting for your indirect transactions such as utilities, rent, company-level payments for insurance, management, marketing, and so on.  Builder-Resources bookkeeping does not offer payroll services at this time, but accounting for payroll would be included in the monthly fee.

The monthly fee is based on the builder having a maximum of ten projects going at any one time.  If you grow beyond that (a good problem to have), we can discuss a rate revision.


What can I expect to pay monthly for bookkeeping services?

Assumptions:

You started the business in January

Current date is March 15

Set-Up time: 6 hours at $45/hr = $270.00

Catch-Up time: 8 hours at $45/hr = $360.00

Three projects in pipeline to start in April, May and June.

Projects starting April and June are less than 3000 sf.

Project starting in May is larger than 3000 sf.

Activity

Set-Up fees

Catch-Up fees

New Start fees

Monthly Fee

Monthly Total

Mar

270

360


129

759

Apr



299

129

428

May



450

129

579

Jun



299

129

428

Jul




129

129

Aug




129

129

Sep




129

129

Oct




129

129

Nov




129

129

Dec




129

129


What reports would be available to me and when would they be available?

More than 30 standard reports are available.  You can see a list of the reports here.  If you need the accounting information "sliced and diced" in a unique way, we will work with you to get the information you need.

The reports are available on request.  Generally, there is no additional charge for the production of reports.  However, an excessive number of report requests may generate a conversation about additional fees.

Our expectation is that most of our customers will find the 10 monthly reports adequate for their needs.


Am I locked into a specific account structure for my general ledger?

Our standard General Ledger is based on the National Association of Home Builders (NAHB) Chart of Accounts format.  There are several benefits to using a uniform model, the major benefit being the ability to more easily benchmark financial reports.

That being said, we are be able to match whatever structure you are currently using, if you wish to stay with any particular chart of accounts.


How do I get transaction information to you?

Preferably, the transaction items are scanned by the client and the electronic files are sent to us via e-mail or Asana or Dropbox.  Alternatively, the originals are sent to us, scanned in our offices,  and then returned to the client.  Either way, an electronic copy of the transaction record is created and will be available to the client for future reference.


What is the turnaround for information I send you?  How quickly can you enter the information?

Typically, we are looking for a 48-hour (or less) turn-around.  That means that information you send at 2:00 MST on Tuesday will be in the system by 2:00 MST on Thursday.





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