At a glance…
Setup tiered breakdown as agreed in contract
Retentions reflected in job
Retentions automatically calculated and appear in invoices
Alert when retention due
Contract amount automatically updated to reflect all retained monies
GST automatically calculated BAS uploaded at click of a button
Builder retentions can be frustrating to manage if you’re using Excel spreadsheets or similar tools.
Generic accounting packages just don’t stack up in this area as and are not building and construction industry specific. Therefore they don’t understand the specifics of our industry requirements. Specifically, in this case, managing builder retentions.
Many builders, just like you, tell us they use a spreadsheet, to manage their construction retentions. When you are manually entering retentions and updating them several times over time there is always room for error.
In fact, one builder even told us he had so many projects on the go, he had forgotten about a $60,000 builder retention which had been held against him. It took him another 12 months to retrieve his construction retention monies. All because he’d not noticed that he could get that money earlier. As you may have guessed, he was using a manual builder retentions spreadsheet. Don’t let money sit in other peoples’ bank accounts when it should be in your account. Every builder must stay on top of their retentions. After all, cash flow is the lifeblood of business, letting someone else hold your cash means it’s not working for you.
BAS reporting of retentions
When doing your BAS, did you know that all builder’s retentions need to be accounted for?
So, is it possible that at present you are over paying GST? The flip side here is you may be over-claiming GST credits.
Obviously, you want to stay on the right side of the ATO. However, you probably want to have a smart way of managing your construction retentions. In our view, good management of builders retentions means minimising the possibility of human error, reducing management time, correct BAS reporting and paying your builders retentions when they are due.
Builder specific software
Builder retentions displayed in real-time as your projects progress
Bizprac construction software allows you to create an estimate using your suppliers and also lets you create purchase orders using the supplier codes direct from that estimate. With Bizprac you can create a job from the estimate at a click of a button. That estimate now becomes the project budget against which your actuals are measured. Upon creating a job, you can now manage your actuals in real time. That means you are able to see the contract amount in real time. In addition, all construction retentions for the project are shown in real time. You can have peace of mind knowing you will receive an alert when your retention monies are due.
Bizprac will enable you to realise the projected margins for each
of your projects. Which means you will have more confidence in your business cash flow and profits. You have now freed up hours for someone who used to manage all the builder retentions. Get Bizprac software for builders and get your builder retentions under control. Free up your time so you can focus on building your business. Read our tips on growing your construction business.
If you would like more detailed information on this very important aspect of your business, how to track and correctly report construction retentions money to the ATO, we would love to hear from you. Please contact our sales team either by email or phone: 1800 009 970