Contractor Bookkeeping

SEPTEMBER 23, 2013

All construction contractors have experienced the financial pain of bad debt which is defined as a customer who refuses to pay no matter what you do. Oddly enough most of them paid the debt years later and all of them were very appreciative that we treated them with courtesy and respect. Knowing The Answers Helps.

Debt 49

Debt Construction Accounting Banking 49

PSMJ Resources

JULY 10, 2013

Most clients are demanding more work for lower fees, and firms that do not reexamine the terms of their contracts usually find themselves without enough income to break even, let alone make a profit. With government clients, this term can reduce overhead, making your contract price more attractive. Shorten the billing/payment cycle.

Profitability 43

Profitability Contract Negotiation Debt 43

Levelset

AUGUST 4, 2022

Let’s take a look at the basics of cash flow and how architects can budget their expenses and forecast their income to stay in good financial standing. Where direct labor is the percentage of salaries that are spent on billable work (rather than overhead time). Financing activities include stock offerings and long-term debt.

Cash Flow 52

Cash Flow Budgeting Budget Forecasting 52

ProcurementExpress.com

JANUARY 2, 2019

In the construction industry, WIPs cover the raw materials, plus labor and overhead, used as part of a project. Meaning, they’ve likely paid for most of the materials, labor, and overhead a while back. Or, worse, your company could go into debt should things slow down later in the year. Well, not exactly.

Work in Progress 52

Work in Progress Accounting Inventory Budgeting 52

Contractor Bookkeeping

MAY 5, 2014

Owner’s equity is in theory what would be left over if you liquidated the company, sold the assets and paid all of the debts or liabilities. This means you will send a plumbing drain technician to clean the main drain of the restaurant four times a year at a cost to your company of $75 for labor and overhead each = $300.

Cash Flow 48

Cash Flow Agreement Profitability Contractors 48

Contractor Bookkeeping

AUGUST 16, 2013

Expenses - Overhead required to maintain business operations. Breakeven - Is fairly easy to calculate because there is a direct relationship between income and expenses on every item. Expenses - Overhead is extremely complex because some expenses in regular Accounting are actually Cost of Goods Sold in construction accounting.

Work in Progress 59

Work in Progress Accounting Construction Leases 59

ProcurementExpress.com

JANUARY 2, 2019

In the construction industry, WIPs cover the raw materials, plus labor and overhead, used as part of a project. Meaning, they’ve likely paid for most of the materials, labor, and overhead a while back. Or, worse, your company could go into debt should things slow down later in the year. Well, not exactly.

Work in Progress 40

Work in Progress Accounting Inventory Budgeting 40