In Episode 22 of The Restoration Report, host Levi Stearns sits down with Jennifer Solsvik, owner of JKS Creative Solutions, to discuss one of the most overlooked parts of running a construction or restoration business: bookkeeping. While many contractors and home improvement professionals prioritize project management, estimating, or insurance claim paperwork, few realize how critical accurate financial tracking is — not just for tax time, but for long-term business growth.
Bookkeeping Is More Than Tracking Numbers — It’s Risk Management
Most business owners know bookkeeping exists, but many underestimate its role in protecting the company. Jennifer explains that clean books aren’t just for internal clarity — they’re essential in the event of an audit, business sale, or insurance review. Without proper documentation, even a highly profitable construction or remodeling business can face penalties, lost deductions, or delays in loan approval.
She points out that business owners — especially in industries like restoration, where job costs, supplier payments, payroll, and reimbursements move fast — often wait too long before hiring help. By the time they reach out, they’re buried in receipts, missed write-offs, and months of unreconciled accounts.
Why DIY Bookkeeping Fails for Most Contractors
While software like QuickBooks makes it seem simple, Jennifer explains that bookkeeping still requires legal, tax, and compliance knowledge. One wrong filing or miscoded expense can trigger issues with state business taxes, business insurance audits, subcontractor 1099s, or payroll documentation.
Even side-hustle businesses — like makers selling on Etsy or real-estate agents doing occasional flips — can get caught off guard if they don’t understand thresholds, deductions, or state business filing rules. Jennifer notes that Washington has helpful small-business tax credits under a certain revenue level, but only if filings are done correctly.
The Hidden Value of Bookkeeping in Construction & Restoration
For companies handling insurance claims, large-scale remodels, or multi-phase restoration projects, bookkeeping helps with:
- Job costing & budget accuracy
- Tracking retainers, deposits, and progress payments
- Vendor compliance (W-9s, subcontractor payments, lien protections)
- Payroll, overtime, and certified labor reporting
- Financial clarity when applying for business credit or equipment loans
Accurate records also increase company valuation — a major advantage if the business is ever sold. Jennifer explains that a business paid in cash and stored “in a shoebox” has no provable value without clean books.
The Relationship Side of Bookkeeping
Unlike a CPA who handles taxes annually, a bookkeeper works inside the business year-round. That means trust matters. Jennifer manages everything from credit cards to payroll to bank access, which is why most of her 20+ clients come from referrals and long-term relationships.
Her mission is simple: give business owners their time back so they can focus on building, serving clients, and scaling — not sorting receipts at midnight.
Final Takeaway
Whether you’re a general contractor, restoration company, or small business owner, bookkeeping isn’t just a back-office task — it’s a foundational part of profitability, tax protection, and long-term business health. The sooner it’s done right, the easier growth becomes.
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Ready to restore your home with confidence? Reach out to Core Contractors for a consultation today! Let us guide you through every step of the restoration process with care and expertise.
