This week I had a meeting with a business owner who could not stop talking about how his current bookkeeper almost caused his 2M dollar construction company to collapse last month. “She almost put me out of business” were the words used to described what she had done.
This scenario is more popular than you may think. Why do you ask? The simple fact is that many business owners just have too many hats to wear. So, they hire a bookkeeper at a very low rate of $15.00 – $20.00 per hour and expect to get top of the line productivity. Let’s begin with a simple fact, the construction industries accounting is very different from other industries. You must know % of Completion and Job Costing even for most accountants this is unknown territory.
Therefore, unless you hire a person that has this background, someone that has years of not only knowledge but hands on experience working in the industry and has been trained and specializes in this type of accounting, chances are you are not going to get a qualified person. I can almost warranty you that at this pay rate you are not getting a person with those qualifications.