Contracting can be a highly lucrative industry when consistent work is guaranteed – and when the business can be backed up with a financial safety net. Some of the biggest financial challenges of contractors, however, can occur when their accounting needs aren’t being met on the back end of things. To sustain the health of bookkeeping matters, it’s important to invest in bookkeeping online so you can automate the mundane processes that keep you from running your company – but that still need to get done to ensure daily ends are met.
Financial Challenges of Contractors
Indevia offers personalized accounting solutions for contractors looking to improve their financial operations from back to front. We provide automated bookkeeping and other cutting-edge accounting services that can not only help you stay afloat but give you the security to thrive and outpace your competitors in the fast-moving world of contracting.
High Interest Charges
A lot of contractors start to hit a bump in the road when sudden financial demand hits hard. Without credit or any other type of capital to cover these issues with payment or payment processing, they can run into some real trouble. Contractors historically have a hard time getting loans because lenders consider them to be a risk. This is because the nature of the business does not often allow contractors to have highly valuable assets. And when contractors are finally granted a loan, they are likely to receive high premiums and interest charges as part of a payment plan.
A smart accounting program can take your financial liabilities and risks into account when managing your company’s available funds, ensuring that you aren’t left in a river of financial debt without a paddle to save yourself.
Slow Owner Payments or Non-Payments by Accounts Receivable
Contractors do not get enough credit for the large undertakings they assume when signing on for construction projects. Working with the owners of lots, facilities, or other building projects can be a hassle and a half when they are slow to provide payment. Building large constructions is often something that has long-term benefits rather than short-term benefits, meaning that payments are typically distributed over time to avoid a huge bill when construction is complete. Without being able to rely on these financial checkpoints, an entire project can be slowed down.
The world has undoubtedly seen a lot of changes over the last few years. In the wake of the pandemic, construction projects came to a near halt. This saw drastic changes in overall demand, with a drop in revenue from construction companies across the board. Trying to cover these huge gaps in taking on new clientele can wear your wallet thin, to say the least. Business slumps can make you worry whether or not your contracting business has what it takes to survive.
Professional accounting advisory services will take current and future lulls in demand into account, helping you more easily access quick cash solutions and fairer loans that can support you and your staff in the toughest of times.
The nature of doing constructions means there has to be a margin for error. As a contractor, you are likely already aware of the pitfalls and risks that come with overseeing a large project like this. But while there is bound to be some oversight, getting too deep into the unexpected can become quickly overwhelming.
Before you know it, you are incurring too many losses to stay afloat. You can utilize expense-tracking software to catch problems like this before they occur, taking stock of your prospective financial health before you commit to another large construction project.
Improve the Health of your Contractor Accounting Activities with Indevia’s Automated Solutions Today
Indevia is proud to offer bookkeeping and accounting services that are particularly tailored to your needs. If you are looking for a way to more effectively manage the unpredictable nature of finances in construction, get in touch with us today to learn about how you can access automated bookkeeping for contractors that will give you a better handle on your company’s finances without having to go through the headache. Get in touch with our experts today to get started!