Contractor Magazine

JANUARY 27, 2014

Previously, we addressed a question posed by a number of contractors on message boards regarding the difference between profits and cash. Specifically, “my income statement shows $50,000 but I don’t have $50,000 in my bank account. Where did the money go?” Best Practices Registered User'

Cash Flow 46

Cash Flow Accounting Contractors Banking 46

Contractor Bookkeeping

AUGUST 29, 2014

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?

Cash Flow 48

Cash Flow Management Contract Accounting 48

Contractor Bookkeeping

JUNE 20, 2013

Construction Cash Flow Example. Starting Cash + Cash In - Cash Out] = Cash Flow. "If For anyone reading this who is not familiar with how cash flow works for a mid-size construction job, consider the following general example. Example Job 1001. Bid Price = $60,000. Learn more.

Cash Flow 48

Cash Flow Profitability Accounting Construction 48

Contractor Bookkeeping

OCTOBER 15, 2021

Adding additional services is an excellent way to increase your profitability, diversify your income and expand your market. But there are essential things to consider before adding to your income streams. If you're looking to grow your construction business, you might consider expanding your service offerings.

Cash Flow 97

Cash Flow Income Finance Plans 97

Contractor Bookkeeping

MAY 5, 2014

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.

Cash Flow 48

Cash Flow Agreement Profitability Contractors 48

Levelset

APRIL 5, 2022

Bigger projects require more materials and more labor, which means higher cash requirements. Contractors can take on more work than their cash flow will let them perform, leaving them scrambling for cash to pay their bills or their employees. But what about cash flow? Forecast cash flow.

Cash Flow 52

Cash Flow Finance Construction Materials 52

Contractor Bookkeeping

MAY 31, 2019

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.

Accounting 58

Accounting Profitability Overhead Banking 58

Contractor Bookkeeping

SEPTEMBER 11, 2012

If after reviewing these questions if you would like to have an open and honest conversation with us about outsourced accounting for your contracting company please contact Sharie at 206-361-3950 or sharie@fasteasyaccounting.com. 07 - Are you are having cash flow problems? #08 Not here, not ever!

Accounting 57

Accounting Contract Cash Flow Contractors 57

Autodesk Construction Cloud

FEBRUARY 25, 2022

A higher ratio indicates a stronger cash position. . Formula: (Cash and Cash Equivalents + Marketable Securities + Accounts Receivables) / Current Liabilities . A high value indicates a strong cash position and ability to withstand cash flow constraints. . Accounts Receivable Turnover .

Safety 94

Safety Debt Liability Equity 94

Levelset

MAY 2, 2022

Contractors trying to grow their business and take on larger projects often struggle to manage their cash flow to purchase the materials they need. Many contractors use trade credit to delay paying for materials and keep more cash in their pockets. Share recent financials. Provide a plan.

Negotiation 52

Negotiation Materials Cash Flow Finance 52

ProcurementExpress.com

JULY 15, 2019

Construction companies face more cash flow challenges than just about any other industry. There’s a lot to be said about the impact automation can have on processes like accounts payable, procurement, and more. Let’s take a look: Free Download: 6 Forecasting Best Practices All Construction Teams Need to Know Click Here.

Cash Flow 68

Cash Flow Contractors Budgeting Budget 68

Contractor Bookkeeping

DECEMBER 30, 2022

You must ensure you have all the necessary information about your income and expenses. Preparing your End of Financial Year (EOFY) information often feels stressful—there are receipts to sort out and reports to review. It can be overwhelming, and it can make the EOFY feel daunting.

Plans 90

Plans Income Finance Construction 90

ProcurementExpress.com

JULY 15, 2019

Construction companies face more cash flow challenges than just about any other industry. There’s a lot to be said about the impact automation can have on processes like accounts payable, procurement , and more. Embrace Automation. We’ve talked about this on, well, too many occasions to count. Speed Up Receivables.

Cash Flow 52

Cash Flow Contractors Budgeting Budget 52

Construction Business Owner

AUGUST 18, 2011

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. STRATEGY |. MANAGEMENT |.

Cash Flow 168

Cash Flow Software Software Accounting 168

Construction Business Owner

SEPTEMBER 27, 2011

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. STRATEGY |.

Construction 180

Construction Software Software Accounting 180

Contractor Bookkeeping

JUNE 20, 2013

Income - COGS - Expenses] = Profit. "If For contractors not familiar with income and expenses flow for a typical mid-size construction job, consider the following general example. With Bonus Material On Cash Flow. Construction accountants are trained to provide accurate information for contractors while C.P.A.''

Profitability 49

Profitability Income Cash Flow Accounting 49

Contractor Bookkeeping

JULY 27, 2012

Aggravation Box - Computer with construction accounting software operated by a trainee. Assets of Company - Cash / Receivables – Payables / Trucks / Tools / Equipment / Material. Assets of Firm - Cash / Business Process / Sales Process / Client List / Predictable Cash Flow.

Contractors 63

Contractors Cash Flow Construction Accounting 63

Contractor Bookkeeping

SEPTEMBER 1, 2014

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.

Contractors 48

Contractors Accounting Cash Flow Profitability 48

Contractor Bookkeeping

MAY 24, 2019

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.

Contractors 52

Contractors Profitability Banking Change Orders 52

Contractor Bookkeeping

JUNE 18, 2013

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. Every contractor with cash flow problems works too hard, has too many clients and sells to much.

Cash Flow 48

Cash Flow Construction Change Orders Contractors 48

Contractor Bookkeeping

JUNE 19, 2013

Fast Easy Accounting has numerous FREE downloadable Forms for ever contractor around the world to use. Each one is just a little thing, a tiny process improvement that helps you be more efficient, have more cash flow and a better life. We would like to think of everyone who visits the Fast Easy Accounting website as a friend.

Profitability 48

Profitability Cash Flow Accounting Construction 48

Contractor Bookkeeping

MAY 28, 2014

Can Help You Overcome the challenges of Marketing, Accounting and Production by focusing on the keys to unlock your contracting company natural inclination to generate consistently high cash flow and profits. Xero Outsourced Construction Accounting Services. Listening To The Contractors Success M.A.P.

Contractors 48

Contractors Accounting Profitability Cash Flow 48

Contractor Bookkeeping

FEBRUARY 28, 2014

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. Every contractor with cash flow problems works too hard, has too many clients and sells to much.

Profitability 48

Profitability Contractors Cash Flow Accounting 48

ProcurementExpress.com

JANUARY 2, 2019

Yes, WIPs are considered current assets – meaning, accountants consider inventory assets to be current, as they are expected to turn into cash within the year. WIP is one element of an inventory account. From an accounting perspective, WIP represents an asset on the balance sheet.

Work in Progress 52

Work in Progress Accounting Inventory Budgeting 52

Construction Marketing Ideas

AUGUST 30, 2012

However, this job proved to be exceptionally challenging and time consuming and resulted in far less income for the designer than he would have earned if he had properly quoted the job in the first place. We spend quite a bit of time in business thinking about our profits and our rights. We also consider our obligations.

Cash Flow 54

Cash Flow Negotiation Construction Compensation 54

Contractor Bookkeeping

AUGUST 11, 2014

Our In-depth Analysis Of QuickBooks Revealed These Critical Issues: The Chart of Accounts Was one of the worst QuickBooks Setup we have seen in the past ten years. It was obvious to us QuickBooks Setup was done by someone with very little if any experience in accounting let alone construction accounting. Click Here For More.

Profitability 48

Profitability Contractors Accounting Income 48

Pro Builder

JUNE 12, 2020

How Just-in-Time Land Deals Help Manage Cash Flow. Now, with careful planning, a similar approach can be used to improve cash flow for home builders through intelligent use of capital. Fri, 06/12/2020 - 05:00. Justin Onorato. . Just-in-time business models have proven highly effective for U.S.

Cash Flow 64

Cash Flow Deals Management Inventory 64

Contractor Bookkeeping

JUNE 22, 2012

Construction Accounting - Is our special expertise which means all of my writing is addressed to members of the construction industry and how we can help them with QuickBooks Setup, QuickBooks Clean-Up and Cloud Based Online Bookkeeping Services. . #1 attempting to mimic our expertise in construction accounting.

Profitability 48

Profitability Contractors Accounting Banking 48

Autodesk Construction Cloud

AUGUST 12, 2021

Construction accounting software is a must-have, but may seem daunting to implement new solutions if your accounting technology hasn’t kept up with the complexities of your growing business. That includes accounting. Sure, accounting may have a bit of a reputation for being mundane. Everything Is Moving All the Time.

Accounting 52

Accounting Software Software FASB 52

Contractor Bookkeeping

AUGUST 13, 2014

As Contractors Move Away From Gut-level Decisions - And begin relying on their accounting systems to provide useful financial and job costing reports the open a treasure chest busting at the seams with useful knowledge which can lead them to earning massive profits and by extension increase their personal wealth exponentially.

Contractors 48

Contractors Accounting Profitability CA 48

Contractor Bookkeeping

OCTOBER 4, 2013

Tell them you are working with a construction accountant that is involved with the bookkeeping and accounting and that you have a totally separate firm that prepares your Annual Federal Tax Return. 2 Connect With A QuickBooks Expert In Construction Accounting Services. 3 Your Income Tax Return Preparer.

Profitability 48

Profitability Construction Accounting Cash Flow 48

Contractor Bookkeeping

NOVEMBER 18, 2013

There are an infinite number of reasons why most construction companies do not generate a minimum 20% net profit and a six figure after tax income for the owners. When good stuff goes into your QuickBooks or Xero Accounting Online good reports come out that you can rely upon to make intelligent decisions which can lead to nice profit margins.

Accidents 48

Accidents Accounting Construction Profitability 48

ProcurementExpress.com

JANUARY 2, 2019

Yes, WIPs are considered current assets – meaning, accountants consider inventory assets to be current, as they are expected to turn into cash within the year. WIP is one element of an inventory account. From an accounting perspective, WIP represents an asset on the balance sheet.

Work in Progress 40

Work in Progress Accounting Inventory Budgeting 40

Contractor Bookkeeping

JANUARY 2, 2015

Did You Use Your Personal Credit Cards - And supplier accounts to finance your new business and perhaps you were not careful about what you bought? Tax Advantages For LLC or a Sub S - If you do not setup your corporation correctly the profit or loss from your business will be passed through to the owners as normal income. You say O.K.

Construction 48

Construction Insurance Accounting Claims 48

Contractor Bookkeeping

JUNE 20, 2014

Use Credit Cards - And supplier accounts to finance your new business and be very careful about what you buy. Tax Advantages For LLC or a Sub S - The profit or loss from your business is passed through to the owners as normal income. Bank Accounts - Set up two bank accounts in your company name. You say O.K.

Insurance 48

Insurance Construction Accounting Claims 48

Contractor Bookkeeping

SEPTEMBER 23, 2013

Owning and operating any business including accounting means sometimes you provide goods and services and not get paid. You can offer financing by getting a merchant account setup at a bank and/or credit union that will offer to loan your construction client''s money for small projects. Knowing The Answers Helps. "If

Debt 49

Debt Construction Accounting Banking 49

Contractor Bookkeeping

MARCH 13, 2014

Six keys helped us out perform other contractors in terms of cash flow and profit year after year regardless of the economic conditions: I was raised in a construction family. I majored in Accounting in the first of several Universities I have attended. Subsequently I have become a perpetual student of Construction Accounting.

Accounting 48

Accounting Construction Contractors Profitability 48