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

Levelset

Construction projects rely on contractors completing the work they started and meeting the design intent. In an attempt to hold contractors accountable, many projects use retention holdbacks, also known as retainage. These holdbacks need to be accounted for by every party to a project: owner, general contractor, and subcontractor.

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Setting Up the Chart of Accounts: QuickBooks for Contractors

Levelset

The Chart of Accounts is the heart of every contractor’s accounting system , whether you’re using QuickBooks or any other construction accounting software. In this article, we’ll explain how a contractor’s Chart of Accounts should be set up in QuickBooks , with a free customizable template for construction. .

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Contractor Tactics On How To Avoid Payment Problems

Contractor Bookkeeping

Construction companies need short-term liquid working capital such as cash, lines of credits, loans, owner financing, credit cards, supplier accounts, and other forms of money to conduct daily operations. Likewise, larger firms can leverage economies of scale.

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Construction Bookkeeping Unique Features

Contractor Bookkeeping

All Accounting Uses The Accounting Equation. Bank Balance - Un-cleared Checks) = Cash. Regular Bookkeeping - Is roughly 80% of all accounting for businesses in the world. Breakeven - Is fairly easy to calculate because there is a direct relationship between income and expenses on every item. Bank Account - Payroll.

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Possibilities for Living Without a Mortgage

Natural Building

Lower income poses an issue because lenders will look at how affordable a mortgage is, often not taking into consideration that the person has been paying rent for years, often at a much higher cost. Missed payments, credit cards, closed accounts, and utilities all feature on your credit file. Photo by Clay Banks on Unsplash.

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Contractors We Cannot Help

Contractor Bookkeeping

They Need A Magician Not A Construction Accountant! These same contractors know better than to buy low cost tools and designed for homeowner''s weekend fix up projects and expect to use them in their construction company. Downloading transactions from the bank works well for a lot of industries; but, NOT construction.

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Choosing QuickBooks Version For Your Contracting Company

Contractor Bookkeeping

QuickBooks Pro - Is great for contractors acting as Sole Proprietor with annual sales under $100,000 who simply need a way to keep track of basic income and expenses. When you spend money record it in the check register as an expense and when you receive money record it as income. In the hands of an accountant or C.P.A.