Remove Banking Remove Cash Flow Remove Liability Remove Profitability
article thumbnail

Service Agreements Can Improve Contractors Cash Flow And Profits

Contractor Bookkeeping

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.

article thumbnail

Accounting for Retention Receivable & Payable: A Contractor’s Guide

Levelset

It can significantly impact the financial standing of contractors, especially when working on projects with a small profit margin. 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. Fariba Mehdian.

professionals

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Construction Business Owner Blogs

Construction Business Owner

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.

Banking 120
article thumbnail

4 Factors Underwriters Consider When Issuing a Construction Bond

Levelset

Some contractors watch as their gross profit margins decrease when they take on larger jobs. 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. Ability to absorb losses.

Risk 52
article thumbnail

Construction Business Owner Blogs

Construction Business Owner

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?

article thumbnail

When Being A Licensed Contractor Is Just Not Enough!

Contractor Bookkeeping

Did you send your liability insurance payment in late? Washington State Resellers Permit saves money and increase cash flow: [link]. Making "A Profit" and Having Real "Money Left Over" is how you are able to the things you want to do in life. Is your #1 Favorite Customer adding / taking profits or cash flow?

article thumbnail

Construction Business Owner Blogs

Construction Business Owner

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.

Security 120