Year-end in construction means wrapping up projects—plus, it’s audit time. Since “audit” ranks just above “root canal” for favorite things, here’s how contractors can prevent panic while preparing audit-proof books.
Avoid Common Audit Mistakes
- Didn’t record all billable hours (every second counts!).
- Lost receipts lead to unclaimed deductions and taxes eat cash you need.
- Revenue recognition missteps… accounting is not “best effort” estimates.
Create Audit-Proof Construction Books
1. Organize Docs from Day One
Check physical and digital records. Consider categorizing by project to group documents well in advance.
2. Daily Data Updates & Reviews
If monthly’s overwhelming, imagine forgetting a quarter; that backlog builds quickly! Daily tidies save amazing time.
3. External CPA Reviews
Have a CPA take a quarterly peek—they identify gaps only later would expose.
4. Streamlining Tech
Accounting software ensures calculations match contracts, not guesswork due back in kindergarten.
Final Notes
Preparation prevents panic. Though the process isn’t glamorous, knowing your construction books are in pristine condition means no stress, just steady progress. Ready to gear up? SkillBench partners with contractors to close books every month, all year round.
