Bad Bookkeepers Secret Code Of Misconduct To Destroy Plumbing Contractors



Bad Bookkeepers Can Hold Your Business Back or Destroy It.

This Article Will Focus On a few subtle things that may be occurring in your Plumbing and Mechanical Company that may be costing your company tiny amounts of time and money. As I have said many times before ?It is the little leaks that sink the ship?.

Do You Struggle With Cash Flow? Has it occurred to you there is something happening in your Plumbing and Mechanical Company that is draining cash away and you know it should be easy to find and fix and yet you can?t find it or prove it let alone fix it and you don?t know what to look for or who to ask?

Some Bookkeepers Are Simply Overwhelmed trying to perform contractors bookkeeping services in a construction company. They have been trained in regular accounting and have no idea that construction accounting is different.

The Most Common IssueÿI have observedÿis the need to exert control and get even for the way they were treated in High School. Sounds

funny doesn?t it? Well let me share a story from an experience I had consulting with a spec home builder / remodel contractor who had a Bad Bookkeeper working in the office.

This Bad Bookkeeper called our office to inquire about getting QuickBooks Setup fixed so that it would work better for their spec home building, flipper house and remodel contracting company. The main problem was Work-In-Progress (W.I.P) was causing the Profit and Loss Reports to be overstated during house construction.

The Bad Bookkeeper pretended to be an officer of the construction company with the authority to make decisions and engage services on behalf of the owner whenever he was out of town. We made an appointment to review and discuss the QuickBooks Setup and repair issues. A couple of days later after performing an extensive analysis on theirÿQuickBooks file we put together a scope of work and project plan to solve all of the issues thatÿwe had identified and the bad bookkeeper readily agreed to have us undertake the project.

Having Been Contractors Ourselves for a number of years we understand the importance of cash flow so we asked for a job deposit before starting work and that is when things started to get strange. Suddenly there was someone else who needed to sign the work order and ?approve? the expenditure. The bad bookkeeper assured us it would be O.K. and we could start work right away and it would be best if everything was done ASAP! We decided it would be best to set an appointment with the contractor and let him decide the merits of our proposal.

Hey, You?re losing money

When The Contractor Returned he called for a meeting and during that event he made it very clear the bookkeeper had no right and no authority to engage services or sign any work orders.

After The ContractorÿReviewed Our Proposal and got all of his questions answered, he liked it, signed the work order and we completed the project. In the end he was both happy and sad.

This System Is Not Foolproof. It provides contractors with some basicÿtools to identify symptoms of money leaks and it helpsÿthem

Not All Bookkeepers Are Bad

toÿdiagnose some of the root causes related to money leaks.ÿThe important thing isÿfor the contractor to take action to stop money leaks immediately and hopefully catch it in time to prevent severe financial problems that could cost them everything including their contracting company, house, cars and other possessions. Fortunately in this case it helped identify some of the bad bookkeeper traits and the contractor took swift action.

ÿDuring My Exit Interview With The Bad Bookkeeper a wealth of information came to light. I had the impression this person had some particularly bad experiences in High School including hazing rituals, pecking order and other normal group dynamics that tend to occur in that environment. Nothing in the exit interview was new since I have heard the same themes repeated over and over many times. I haveÿparaphrased the five most common ones below.

Bad Bookkeepers Have Psychological Issues

Rule #1 ? Bookkeeping data entry and related work mustÿexpand to fill the time allowed for it or the outer edge of what contractorÿwill tolerate

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