Construction Case Studies

Outsourced Accounting

Subcontractor Unable to Secure Bonding

Jeffrey Yamada
Published On 
February 16, 2019


Business for this specialty sub-contractor was good — and had grown to $10M in revenues. But their accounting processes never evolved beyond doing the bare minimum.  The person handling all the financials had no formal accounting training.  The company was using QuickBooks but the system was not configured properly to produce the information they were looking for.
Because financial reports were not timely, and accuracy was problematic, the company’s ability to obtain bonding was hindered.  Worse yet, project managers didn’t have the tools they needed to know where they stood on their jobs.  The project managers were being held accountable for the profitability of their jobs, but they had no way of knowing how the job was performing until they closed the job.
The company thought they were saving money by overworking their administrative staff and not hiring accounting expertise.  They needed the professional accounting skills and processes of RedHammer to update their software system, analyze job costs, plan cash flow needs, and obtain necessary bonding.


  • Standardization of QuickBooks setup
  • Implementation of standard costs codes to break down costs and budgets
  • Implementation of paperless AP routing system
  • Integration with outsourced HR
  • Implementation of bi-weekly project management meetings to review job costs and closely monitor budgets
  • Produced 12-month projections to show where they needed more work, and where they were going to have problems staffing the jobs.


  • Savings of 22% in accounting related overhead
  • Streamlined accounts payable approval and payment process
  • Streamlined Payroll
  • Dramatically improved job cost information
  • Bi-Weekly project management meetings to review job costs and closely monitor budgets
  • Accurate and timely information to base future bids

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