When it comes to recordkeeping, construction firms have a lot to deal with: accounting rules, the need to make various claims, keeping track of different expenses for tax deductions, and maintaining viable employee records. Getting the most from tax deductions, making sure your company is up to date with report filing, and reducing the chance of having to deal with penalties that come with not paying the proper amount of taxes all depend on accurate recordkeeping and the ability to make legitimate claims based on your records.
Types of recordkeeping tasks
There are several types of recordkeeping tasks that a construction company needs to perform. Each of these is vitally important and may provide you with the best chances of a fair outcome when it comes to making specific claims:
- Detailed employment records have to be kept for each worker that has received payment from the company in exchange for the performance of specific tasks.
- Recordkeeping for various construction projects requires you to keep contractual agreements, architect bulletins, various pre-construction agreements and documents, as well as any amendments and revisions.
- Documentation associated with costs and payroll in the case of each construction project is also required. Invoices, daily reports, delivery tickets and labor agreements are all a vital part of the recordkeeping process and can tip the balance in any claim.
Using a reliable system
The computerization of construction project recordkeeping plays a vital role in making accountants' jobs easier by accurately tracking all the payments, invoices, miscellaneous expenses and the materials or tools required for additional repair and maintenance tasks during the course of a construction project.
Instead of accountants and employees trying to backtrack various activities and expenses through piles of paperwork, a convenient system set up on the computer will be able to keep all records across many years and hundreds of construction projects to keep an orderly record and make sure that any claims your company makes can be backed up with real proof.