article thumbnail

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

Levelset

It provides a financial incentive to ensure that the work is of appropriate quality and meets the plans and specifications. ABC Contractor is billing a project owner for $100,000 with 10% retention. Debit Credit Bank or cash $90,000 Retention receivable $90,000. Paul’s Masonry invoices ABC $50,000 with 10% retention.

article thumbnail

How Inventory Control Saves Construction Teams Resources

Construction Business Owner

ABC classification (also known as the 80/20 rule) can help you determine what inventory to focus on first. This leads to not only your business generating cash flow sooner, but also to happier customers all the more likely to hire you again. About Sortly.

Inventory 217
article thumbnail

The Small Business Guide to Construction Management Software

Autodesk Construction Cloud

The Associated Builders and Contractors (ABC) estimates the construction sector would need to bring in nearly 650,000 additional workers in 2022 to meet labor demands. As Anirban Basu, ABC Chief Economist said in a statement, “The workforce shortage is the most acute challenge facing the construction industry despite sluggish spending growth.

Software 105