Levelset
JULY 25, 2022
Working capital measures the difference between a construction company’s current assets and current liabilities. Businesses whose assets (like cash, accounts receivable, inventory, or materials) exceed the value of their liabilities (like wages, debts, vendor payments, or overhead costs) have working capital to use to maintain or grow.
Contractor Bookkeeping
MAY 5, 2014
In the meantime, service agreement customers are a source of cash flow and are predetermined to call you instead of your competition when repairs are necessary. The Balance Sheet is the summary report which shows all of the assets minus the liabilities which equals the "Book Value" or owner''s equity.
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Levelset
JUNE 6, 2022
Both retention accounts are shown as current assets and current liabilities, respectively. Plus, not recording retention payable leads to the understating of a company’s liabilities. Debit Credit Bank or cash $90,000 Retention receivable $90,000. Debit Credit Bank or cash $10,000 Retention receivable $10,000.
Construction Business Owner
FEBRUARY 16, 2012
Bank lines of credit are lifelines for many contractors, yet convincing a bank to provide or renegotiate a line of credit is not easy. Building your case beforehand can certainly help and makes you look better in the eyes of the bank. Crunch the numbers – Banks like proactive business owners. Projected future earnings.
Levelset
AUGUST 16, 2022
Sureties calculate working capital more conservatively than other credit providers or banks. It is also helpful to provide the surety with a cash flow projection for the project. In the event of issues, access to additional sources of liquidity, like a bank line or personal funds, is also important.
Construction Business Owner
MARCH 6, 2011
Mr. Rattner discussed the stress tests given by the Treasury Department to large banks that were receiving TARP funds. What would you do next week if you lost that job you had been banking on? Public Exposure and Liability on Construction Sites. Perhaps the real reason is what is politically too painful to allow to fail?
Construction Business Owner
FEBRUARY 23, 2012
For example, banks and other financial institutions put in stronger measures than many other industries. He noted, though, that while almost all banks protect secure transactions through the common HTTPS encryption, most of the security measures are implemented on the back end with multiple networks, firewalls, and layers of encryption.
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