I’ll never forget the day a customer challenged a renovation contract and withheld half the payment — 50% of the balance, even though the job was complete.
The contract was signed, pricing agreed from the start. But behind the scenes, QuickBooks records had been loosely tracked before I came on board. That gap in process opened the door to dispute.
Contract Dispute Highlights Weak Job Cost Tracking
The customer demanded a full recap of material and labor costs.
- Sharing internal pricing wasn’t an option — that breaks trust and ethics.
- But we still needed clarity on our investment to settle the payment.
Uncovering Gaps in Bookkeeping and Expense Classification
After digging in, here’s what the books revealed:
- ✅ Small retail materials were tracked correctly with receipts.
- ❌ Major materials, freight, installer labor, fuel, tolls, commissions, and license fees were scattered under general expenses.
Half a day of forensic reclassification later, we finally had the full picture. Painful, but necessary.
Building Audit-Ready Processes for Receipts, Labor, and Licenses.
That moment sparked a reset across the team:
- Owners, sales managers, and installers aligned on one clear process for receipts, timecards, invoices, and licenses.
- Job tracking became standard practice.
- No more scrambling when disputes arose — clarity was built into the workflow.
Clear Bookkeeping Processes Safeguard Revenue and Client Trust
Clear processes don’t just keep the books tidy. They safeguard revenue and trust.
When challenges arise, audit‑ready records are your best defense.
👉 How do you keep your projects audit‑ready when the unexpected happens
Prime Entry Bookkeeping Case Study: Lessons for Small Business Owners
That’s the lesson we’re closing the week with at #PrimeEntryBookkeeping.
Next week: Bookkeeping Anxiety Is Real — practical tips to ease the stress and keep your books under control. Stay tuned.