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Issue Date: Jan 29, 2010, Posted On: 1/26/2010


Hey Fred
   Hey Fred,
 Until now, I have not paid much attention to my company’s accounting and bookkeeping issues. We have an experienced bookkeeper who uses a generic accounting package to manage our books. Because it doesn’t do everything we need, she runs some reports and billing through spreadsheets. Unfortunately, she recently gave notice, and now I am panicked with the thought of replacing her. Should I hire someone who knows these systems or bring in someone who can run a more sophisticated job cost accounting system, as my accountant suggests?
                                 - Carl

   Hey Carl,
 Let’s look at it this way: no matter which path you choose, you will undoubtedly experience some down time and a learning curve. So why not bite the bullet and upgrade to a true job cost accounting system? The fact that your accountant has recommended a change — not to mention the disjointed use of spreadsheets for reporting and billing tasks — tells me that you have many needs that are not being addressed.
 The question I have Carl, is why aren’t you paying close attention to your company’s financials? A good construction accounting system can handle far more than just bookkeeping tasks; it’s designed to help you understand your job costs and take control of your business. But no technology will do everything for you. If you don’t have a firm grasp of your company’s financial data, especially in today’s competitive economic climate, your business won’t survive in the long term. Instead of worrying about the loss of your bookkeeper, maybe you should look at this as an opportunity to understand the numbers behind your business and help it grow.
                                  - Fred


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