Use Financial Statements to Make a Solid First Impression
Financial statements are a must-have for any organization. The balance sheet reveals how much its assets and liabilities are worth based on historic costs. The income statement tells investors and lenders how profitably and efficiently the company has performed during the accounting period. The statement of cash flows details sources and uses of cash from operating, investing and financing activities. All this is relevant information for company insiders, as well as for lenders, bonding companies and other stakeholders.
Whether you prepare these statements in-house or hire an outside accounting firm to prepare them is a cost-benefit decision. But accounting for construction companies is often less straightforward than it is for retailers, manufacturers and service firms. Construction bookkeeping requires a specialized understanding of accounting for multiple long-term projects, as well as a mastery of their specific reporting requirements for income tax, payroll, union and bonding.