FEA Randal And Train
Bookkeeping Trial Test Drive
Outsourced Accounting
Contractor Bookkeeping Templates For QuickBooks And Xero
1-800-361-1770

    Payroll Options - Paper Check, Direct Deposit or Debit Card?

    Posted by Randal DeHart on Wed, Feb 15, 2012

    When Contractors Ask - Which payroll option we recommend we usually say Direct Deposit. The reasons are simple and as usual related to our primary role as "Profit And Growth Specialists For Contractors" and our Primary Mission which is helping you, the men and women of the greatest industry on earth, construction industry to achieve your definition of success. You deserve to be wealthy because you add value to other people's lives.

    We Offer Payroll Processing - Using all three options. You pick the one that is best for you. Learn More...

    The First Option - Paper check looks like the least expensive. Calculate payroll hand write or print a paycheck, hand it to your employee and done.

    Like the Iceberg there are costs you see and costs you don't see. It is the hidden costs that cause your Profit and Loss to look bad at the end of the year.

    Fast-Easy-Accounting-206-361-3950-Construction-Company-Profit-Coaching-Services

    What Is The First - Thing an employee does after getting a paper paycheck? They go to the bank or the check cashing store and get cash!

    If They Are Paid For Travel Time - To and from the jobsites they will typically cash their paycheck on the way to the jobsite or take a break as soon as the bank opens.

    There Are Three Costs - To consider:

    #1 Travel Time - See What Is Ten Minutes Costing Your Company and Multiply By Three! Because it will take ten minutes each way to detour to and from the bank or payday advance company plus ten minutes inside the building.

      • For Example: You pay your employee $25.00 per hour that means Every Ten Minutes Of Doing Personal Business On Company Time Costs You $5.94 Multiplied By Three Equals $17.82.  If Your Company Earns 10% Net Profit Then You Need To Sell Another $178.20 Worth Of Work To Make Up The Loss You Suffered.

      • If there is more than one worker in the company vehicle simply multiply everything by that number

      • See The Chart Below:

      • field-labor-fully-burdened-hourly-cost-compliments-of-fast-easy-accounting
      •  

          Cost of unproductive 10 minutes of construction worker’s time

    Every Ten Minutes Your Construction Worker Costs You $5.94

    #2 Cost Per Mile - To operate the company vehicle which varies depending on the type of vehicles your company uses. Generally numbers we see are range from $1.25 to $1.75 per mile. This takes into account Fuel + Insurance + Repairs + Maintenance + Registration + License divided by the number of miles driven. In this example we estimate a three mile detour at the middle range of $1.50 per mile = $4.50

    #3 Delays On The Job - In construction you are dealing with project based system not an operations or manufacturing based operation. Every additional day you have to mobilize and de-mobilize costs you money. For example if it takes (15) minutes for (4) workers to get setup in the morning and the same amount of time at night your total costs could be $121.92

    Cost Calculations To Mobilize And Demobilize Jobsite

    Total Cost For Paper Checks - Between $15.00 and $50.00 per employee. To get the actual results for your company some analysis would need to be run or you would simply look in your Business Process Management System (BPM) for the answers.

    The Second Option - Direct deposit could cost an additional $5.00 per payroll and $0.99 per deposit. Direct deposit drops into your employee's bank account one minute after midnight on the day payroll is due. The cost of having a Professional Bookkeeper prepare the payroll is less with direct deposit because of the time saved in preparing and printing the paper checks, setting them aside for you to sign them, stuffing them in the envelopes and taking time to pass them out.

    The Third Option - Debit Card is similar to direct deposit. The difference is the employee does not need a checking account.

    We Offer Payroll Processing - Using all three options. You pick the one that is best for you. Learn More...

    We Remove Contractor's Unique Paperwork Frustrations

    For Construction Company Owners who do not need the full power of QuickBooks for contractors and want 24/7 online access we offer Xero Accounting Online and we have custom setup for construction companies. Click Here For More.

    This Is One More Example of how Fast Easy Accounting is helping construction company owners all across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to people like you so stop missing out! Call Sharie 206-361-3950 or sharie@fasteasyaccounting.com and schedule your no charge one-hour consultation.

    accounting  consultation

    Profitable Contractors and Construction Company owners have known about the value of outsourced bookkeeping services and contractor coaching services like ours for a long time and now you know about it too! 

    We Scan Your Receipts And Invoices link the appropriate transactions to QuickBooks or Xero Accounting Online depending on the construction accounting service you are using and provide ongoing Cloud Based Contractors Bookkeeping Services by accountants who understand construction.

    Our Contractor Bookkeeping Services System Is A System

    Contractors Bookkeeping Services

    Thinking About Outsourcing Your Contractors Bookkeeping Services To Save Time And Money?

    Click On The Button Below To Download A Free Guide

    Contractors Bookkeeping Services Guide >

    Business Process Management (BPM) For Contractors

    Need Help Now?

    Call Sharie 206-361-3950

    sharie@fasteasyaccounting.com

    Fast Easy Accounting Strategic Bookkeeping Services For Construction Companies

    Xero Outsourced Construction Accounting Services

    QuickBooks Outsourced Construction Bookkeeping Services

    We Are Xero Accounting Experts Specializing In Construction Bookkeeping Services

     

    About The Author:

    Randal DeHart, PMP, QPA The Construction AccountantRandal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor, QuickBooks For Contractors Expert and Xero Accounting Specialist. This combination of experience and skill sets provides a unique perspective which allows him to see the world through the eyes of a contractor, Project Manager, Accountant and construction accountant. This quadruple understanding is what sets him apart from other Intuit ProAdvisors and Xero accountants to the benefit of all of the construction contractors he serves across the USA. Visit http://www.fasteasyaccounting.com/randal-dehart/ to learn more.

    Our Co-Founder Randal DeHart - Is a Certified PMP (Project Management Professional) with several years of construction project management experience. His expertise is construction accounting systems engineering and process development. His exhaustive study of several leading experts including the work of Dr. W. Edward Deming, Michael Gerber, Walter A. Shewhart, James Lewis and dozens of others was the foundation upon which our Construction Bookkeeping System is based and continues to evolve and improve. Check out our Contractor Success Map Podcast on iTunes and Follow Randal on Google+

    Topics: fully burdened labor costs for construction worker, Payroll Options, QuickBooks For Contractors, Construction Bookkeeping And Accounting, Business Process Management For Contractors

    Download Our Free App For Construction Contractors

    click to download the Contractors APP now from the App Storeclick to download the Contractors APP now from the Android store

    Access Code: FEAHEROS

    QuickBooks Setup And Chart of Accounts For DIY Contractors

    accounting articles

    Subscribe by Email

    How Can We Help?

     
    Contractors Bookkeeping And Accounting Services

    Who We Help

    How We Help

    Next Step

    FAQ's

    Contractors Bookkeeping And Accounting Services

    Outsourced Construction Accounting Services For Contractors All Across The U.S.A. By Fast Easy Accounting 206-361-3950

    Serving Construction Contractors
    Across The U.S.A
    Including Alaska
    And Hawaii

    Podcast On iTunes
     
    Click Here To Listen In iTunes
    Contractor  Success M.A.P.
    Contractors Bookkeeping And Accounting Services

    Remote Access Your QuickBooks  Using Secure Servers

    Outsourced Bookkeeping Services For Contractors At Fast Easy Accounting

    Contractors Bookkeeping And Accounting Services

    T Sheets Pro Advisor Fast Easy Accounting

    Mobile Time Cards 

    Eliminate the job site to office paper shuffle

    Start My Free 14 Day TSheets Trial  

    Connect With Randal DeHart Google+
    Contractors Bookkeeping And Accounting Services

    Fast Easy Accounting Construction Accounting Specialists Member Of National Association Of Home Builders NAHB

    Contractors Bookkeeping And Accounting Services

    mbamember

    Join Our MBA Network

    Most Popular Posts

    Read the Latest:

    Browse by Tag

    badge

    Blog Suggestion Box

    We Remove Contractor's Unique Paperwork Frustrations

    Quickbooks certified proadvisor

    Xero-Accounting-Services-Fast-Easy-Accounting

    Financial-Intelligence-And-Performance-Reporting-Tool-Fast-Easy-Accounting Hubdoc-Document-Collection-and-Management-System MBA Member Fast Easy Accounting 206-361-3950
     
    contractor-success-map-podcast-listen
     
    Don't forget, you can hire our services at FastEasyAccounting.com
     
     
    How To Use Our Services