Construction Case Studies

Outsourced Accounting

General Contractor Hired Inexperienced Bookkeeper

Neil Tagawa
Published On 
May 10, 2020


A general contractor had been running a profitable business in a small niche.  He worked with subcontractors that he trusted to get the work done on schedule and within budget.  Accounting was viewed as a necessary evil and just used for compliance.  A bookkeeper came in a couple of times a week and no job cost reports were provided. Business continued on its normal path, but one year their CPA questioned why there was a decrease in profitability.  The owner questioned the bookkeeper if she had any ideas of what was going on with his operations. The answers he was getting were very vague, and the information didn’t seem to add up in his mind.  As he pressed the bookkeeper harder, he stopped getting return calls and he finally received an email that she could no longer service his business.


  • Reconfigured QuickBooks and reconciled all accounts
  • Standardized set up with best practices for job cost
  • Implemented paperless AP approval system
  • Trained owner on reading financial statements
  • Weekly review of all active jobs 


  • Improved gross profit margins
  • Improved controls and visibility of expenses
  • Peace of mind that another set of eyes are looking after his books – RedHammer is strict about not having the ability to make or control payments.
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