← The Cash Flow Contractor9 apr · 1 u 05 min
298 - The 12 Non-Negotiables of Contractor Bookkeeping
<p>How do you know if your books are actually giving you good information? If you can't answer that question confidently, every financial decision you make is built on shaky ground.</p><p><br></p><p>In this episode, Martin walks through the 12 non-negotiable bookkeeping rules from his upcoming book, Running on Numbers. These are the things your bookkeeper must be doing, from double-entry accounting and daily entries to WIP tracking and monthly closes. If any of these are missing, your financial statements are incomplete.</p><p><br></p><p>The advice is simple: hand this list to your bookkeeper and ask, "Are you willing to do all of this?" If the answer is no, it's time to find someone who will.</p><p><br></p><p><strong>Key Topics & Timestamps</strong></p><ul><li>00:48 Why Good Books Matter</li><li>01:54 No DIY Bookkeeping Rules</li><li>07:16 Non-Negotiables Framework</li><li>10:38 Core Bookkeeping Must-Haves</li><li>32:15 Matching Principle Basics</li><li>36:58 WIP Fixes Matching</li><li>41:45 Aging AR and AP</li><li>49:48 Cost Closes Reports Wrap</li></ul><p><br></p><p><strong>Memorable Quotes</strong></p><ul><li>"If you do not have good books, all your efforts, all your learning about breakeven and how to bid, all this doesn't matter because you've got bad information." — Martin</li></ul><ul><li>"You can think of books as a knowledge base. Any knowledge base needs to follow what you're saying so far." — Khalil</li><li>"Matching is a bitch. It is hard." — Martin</li></ul><p><br></p><p><strong>Key Takeaways</strong></p><ol><li>Stop doing your own bookkeeping if your business has any complexity. No DIY, period.</li><li>Your bookkeeper must use double-entry books and accrual accounting as the baseline.</li><li>Build a chart of accounts that gives you useful detail without becoming a 10-page mess.</li><li>Every transaction needs a source document from an outside party before it gets entered.</li><li>Enter transactions daily, not in monthly batches. Time degrades information quality.</li><li>Reconcile every balance sheet account with an outside entity to create aligned truth on your transactions.</li><li>Revenue and expenses must land in the same period. Matching and WIP tracking prevent the profit rollercoaster.</li></ol><p><br></p><p><strong>Resources</strong></p><ul><li>Running on Numbers by Martin Holland (upcoming book)</li><li><a href="https://quickbooks.intuit.com/" target="_blank" rel="noopener noreferer">QuickBooks</a></li></ul><ul><li><a href="https://www.perplexity.ai/">24 Things Guide</a></li><li><a href="https://growthkits.com/schedule-a-call">15-Min Roadblock Call</a></li><li><a href="https://www.quo.com">Quo</a></li></ul><ul><li><a href="https://offer.growth-kits.com/implementing-ai-workshop-sign-up-page">Implementing AI in Your Business Workshop Sign-Up </a></li></ul><ul><li><a href="https://offer.growth-kits.com/24-things-construction-business-owners-assistant">24 Things</a> Construction Business Owners Need to Successfully Hire & Train an Executive Assistant</li></ul><ul><li><a href="https://www.growth-kits.com/schedule-a-call">Schedule</a> a 15-Minute Roadblock Call</li></ul><ul><li>Build a Business that Runs without you. Explore our<a href="https://www.growth-kits.com/"> GrowthKits</a> </li></ul><ul><li>Need Marketing Help? We Recommend<a href="https://bit.ly/benaliconstructyoursuccess"> Benali</a></li><li>Need Help with podcast production? We recommend<a href="https://www.demandcast.co/"> Demandcast</a></li><li>Checkout <a href="https://bit.ly/3LqjSNo">Quo</a> </li></ul><p><br></p><p><strong>More from Martin Holland</strong></p><ul><li><a href="https://bit.ly/The-Profit-Problem">theprofitproblem.com</a>
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