Remove Accounting Remove Cash Flow Remove Foundation Remove Income
article thumbnail

Unique Tips For Managing Cash Flow In Your Contracting Company

Contractor Bookkeeping

Cash flow is the lifeblood of any construction company and especially the ones with annual sales volume under $1,000,000. Some construction Company experts even say that a healthy cash flow is more important than your contracting company''s ability to complete projects! What Makes Up Your Construction Company Cash Flow?

article thumbnail

Five Basic Construction Accounting Tasks To Complete Every Month

Contractor Bookkeeping

Proper construction accounting is all about the details. Everything starts with cash because "cash is fact, profit is an opinion." All transactions in the bank account of your construction accounting system no matter if it is QuickBooks or Xero, must be assigned to the proper accounts: Income.

professionals

Sign Up for our Newsletter

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

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. Construction Accounting As It Relates To Service Agreements. The income from the service agreement is $600 - your cost $300 = $300 additional income.

article thumbnail

Obtaining the Proper Bonding for Government Jobs

Construction Business Owner

ACCOUNTING |. Accounting & Finance. Other common reports bonding agents will look at include income statements, balance sheets, statements of cash flow, and job specific invoice aging reports. Tags accounting. accounting software. Construction Accounting Software. foundation. STRATEGY |.

Cash Flow 168
article thumbnail

Construction Business Owner Blogs

Construction Business Owner

ACCOUNTING |. Accounting & Finance. « Considering New Accounting Software? If a business is unprofitable in 2011, and has no taxable income to use the deduction, that business can elect to use 100% Bonus Depreciation and carry-forward to a year when the business is profitable. Tags accounting. foundation.

article thumbnail

Do Contractors Need Every QuickBooks Feature?

Contractor Bookkeeping

Editor''s Note: We see many QuickBooks for contractor files where the contractor is paying tax on money they have not collected and when we ask why, the most common answer is the tax accountant wants to make sure the contractor pays their fair share of taxes. The Next Two Profit & Loss Reports Show Accrual Vs. Cash And % of Income.

article thumbnail

Construction Company Failure Root Causes

Contractor Bookkeeping

Education is the foundation for shifting paradigm. Cash flow issues kill contractors even though they have profit. Poor scheduling affects production and cash flow. Work-In-Progress (WIP) report the ultimate gauge for cash flow and least understood. Lack of understanding of Construction Psychology.