Payless Taxes LLC | Accounting and Tax Blog

1️⃣ General Ledger & Chart of Accounts Setup✅ Define your chart of accounts (COA)— Set up accounts to track income, expenses, assets, liabilities, and equity. ✅ Create cost categories—organize expenses by materials, labor, equipment, subcontractors, and overhead. ✅ Automate bank reconciliation—Set up bank feeds and reconciliation schedules to track cash flow. 🎯 Outcome: A structured financial foundation for tracking all construction-related costs.2️⃣ Job Costing Workflow✅ Set up a job cost… Read More

A well-structured bookkeeping workflow ensures accurate financial tracking, compliance, and profitability for commercial construction businesses. Below is a streamlined process covering all key aspects: 1. Project Setup & Budgeting ✅ Create a New Project in Accounting & Project Management Software ✅ Enter Initial Budget & Cost Codes 2. Accounts Payable (AP): Managing Expenses ✅ Purchase Order (PO) & Vendor Setup ✅ Invoice Entry & Matching ✅ Payment Processing 3. Accounts… Read More

Streamlining accounting with QuickBooks and project management software (like Procore, Buildertrend, or Knowify) is key to improving financial efficiency, reducing errors, and enhancing overall job profitability. Here’s how to effectively integrate and optimize these tools: 1. Integrating QuickBooks with Project Management Software ✅ Seamless Data Flow ✅ Automated Invoicing & Billing ✅ Expense & Purchase Order Management 2. Optimizing Accounting Processes ✅ Job Costing & Profitability Analysis ✅ Payroll &… Read More

How Financial Ratios Impact Bonding Capacity Surety bonding is a crucial requirement for contractors, businesses, and individuals engaged in public and private projects. One of the key determinants of bonding capacity is financial health, which is evaluated through financial ratios. Surety companies analyze liquidity, leverage, and profitability ratios to assess a company’s ability to complete a project successfully and fulfill its financial obligations. Liquidity Ratios Liquidity ratios measure a company’s… Read More

Prevailing wages are a crucial aspect of the construction and government contracting industries, ensuring that workers receive fair compensation for their labor. For contractors, understanding and complying with prevailing wage laws is essential to maintaining compliance, avoiding penalties, and securing government contracts. In this blog post, we will explore what prevailing wages are, how they are determined, and why they matter for both employers and employees. What Are Prevailing Wages?… Read More

For contractors, maintaining strong working capital is essential for securing and increasing bonding capacity. Surety bond underwriters closely examine a contractor’s financial health, and working capital (current assets minus current liabilities) is a primary indicator of a company’s financial stability. A contractor with strong working capital demonstrates the ability to handle current liabilities, fund ongoing projects, and maintain positive cash flow—all critical elements for securing larger bond limits. In this… Read More