Transforming Construction Accounting with Outsourced Expertise
For construction companies, having access to clear, timely financial information is non-negotiable. But in many instances, company owners aren’t getting that clarity from their existing accounting and bookkeeping teams –– a challenge that holds many companies back.
This was certainly true for a mid-sized construction company that reached out to James Moore for help earlier this year. The company was facing persistent challenges in managing its accounting and financial processes. Their internal accounting systems were disorganized, leading to inefficiencies, inaccuracies, and missed growth opportunities.
These issues not only hampered day-to-day operations but also limited the company’s ability to secure bonding — a critical factor in winning new projects.
Challenge
The company’s existing accounting setup lacked structure and clarity, making it difficult for stakeholders to access accurate financial data. With no streamlined processes in place, their accounting staff struggled to fulfill their responsibilities.
Financial statements weren’t produced in a timely manner and were only directionally accurate. The company’s leaders didn’t have a good read on how their projects were progressing. And all of the company’s accounting and bookkeeping flowed through one person, resulting in a significant key person risk.
The result of all under-developed financial infrastructure? The company struggled with important tasks like preparing for audits and answering bonding-related questions from their surety partners.
Due to these issues, the company’s growth potential had started to stall. The lack of reliable financial information created uncertainty among potential project partners and stakeholders, compounding the company’s challenges. Looking for a better solution, the company’s owners turned to James Moore’s construction accounting professionals.
Solution
James Moore’s outsourced construction accounting team stepped in to overhaul the company’s accounting processes. By leveraging our extensive industry expertise, we:
- Conducted a comprehensive assessment of the company’s accounting practices, identifying gaps and inefficiencies.
- Implemented streamlined workflows to ensure timely and accurate financial reporting.
- Developed and maintained contract schedules throughout the year, rather than just in preparation for a review or audit. This gave the company’s leaders a much more up-to-date understanding of how their various projects were progressing.
- Helped the company address potential auditor questions to mitigate risks and improve compliance, and liaised with auditors to ensure a streamlined audit process.
- Delivered ongoing support to enhance the company’s financial management capabilities.
- Served as a sounding board for the company’s leaders, helping them consider all of the financial ramifications of key decisions.
Our team didn’t simply fix the immediate issues; they also laid the groundwork for long-term financial stability. By automating repetitive tasks and introducing robust reporting tools, we ensured the company’s accounting system could scale with its growth.
Results
With James Moore’s guidance, the company was able to transform the way it approached accounting and bookkeeping in just a few months. The partnership unlocked a series of benefits that continue to pay dividends for the business today, including:
- Enhanced clarity: Their financial data became more organized and accessible, giving leadership the insights needed to make informed decisions. This clarity allowed the company to identify the profitability of its projects, avoid overextending resources and strategically plan for the future.
- Improved bonding capacity: Clear and accurate financial records gave the company a competitive edge in securing bonding for new projects, helping them secure lower bonding premiums and quicker approval processes.
- Streamlined audits: Proactive preparation eliminated surprises during audits, saving time and resources. This also reduced the stress and disruption audits had previously caused, enabling the team to focus on core operations, safe in the knowledge their outsourced accounting team at James Moore could handle communications with their audit firm.
- Operational efficiency: A more efficient accounting system reduced errors and freed up staff to focus on what they did best: growing their business.
- Peace of mind: The transformation in the company’s accounting processes had a ripple effect across its entire operation. With reliable financial data, the leadership team could confidently pursue growth opportunities and make bold investments.
Improve Your Construction Accounting with James Moore
By partnering with James Moore’s outsourced accounting team, this one construction company transformed its accounting and bookkeeping practices, unlocking new opportunities for growth and success.
It’s an engagement that underlines the value of expert guidance in turning accounting challenges into competitive advantages. Our partnership didn’t just solve the company’s immediate issues; it empowered them to thrive in a highly competitive market and set the stage for sustained success.
Could your construction company benefit from support like this? Contact us today to learn more about our outsourced accounting solutions for construction companies.