Maintaining a services and products (non-inventory) items list (in your bookkeeping software platform) for an exterior remodeling type of business probably does not have to be as sizable and complex as may be for a complete home building type of business.

In fact, overall, I probably would recommend that you keep your items list (not accounts, but the actual the items you purchase from a supplier) to a generic-sounding organized list. Example:

 

  • Siding Labor
  • Siding Materials
  • Windows Labor
  • Windows Materials
  • Gutters Labor
  • Gutters Materials
  • Other Materials
  • Building Permits
  • Sales Commissions

When you purchase materials or services from a supplier, be sure to capture the minimum information in your bookkeeping software platform:

  • Name of Supplier (for possible 1099 purposes).
  • Date of purchase (if you are writing check payments, be sure you date the check payment as of at least the mailing or pick-up date by the vendor. Also if you are booking bills from vendors and then later on paying these bills by check, be sure to date the bill prior to or at least as the same date as the corresponding bill check payment. Also keep in mind regarding booking bills at the end of the year, but not really paying until the following year).
  • Service or product item it applies to (see examples above).
  • Customer project or job it applies to (this is for job-costing purposes).
  • Amount (be sure to allocate the correct amounts to each customer project if you are purchasing materials in bulk or paying contractors for periods of time rather than per job worked).

 

Note: AccuraBooks is a bookkeeping firm only, so please consult with your C.P.A. for verification and clarification about the contents of this article.

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