Contractor Bookkeeping

JUNE 11, 2013

There is some confusion about the differences between job costing accounting and regular accounting which leads some contractors to believe they can get what they need from any bookkeeper and the cheaper the better. Yet most contractors believe the complete opposite about construction; cheaper is not better.

Accounting 48

Accounting Bankruptcy Profitability Contractors 48

Contractor Bookkeeping

JUNE 1, 2018

Knowing how to use Work-In-Progress, Direct and Indirect Construction Costs is key. Understanding Overhead, Other Expenses, and Other Income compounds are also important. Bankers, lenders, investors, construction company owners, and other stakeholders need accurate, timely reports.

Work in Progress 50

Work in Progress Overhead Accounting Profitability 50

Contractor Bookkeeping

JUNE 20, 2013

Construction Profits Are Simply. 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. Construction accountants are trained to provide accurate information for contractors while C.P.A.''s

Profitability 49

Profitability Income Cash Flow Accounting 49

Levelset

APRIL 5, 2022

Most construction businesses focus on their profit margins — making sure that revenue exceeds costs for each job. Cash flow is the number one reason why construction companies go out of business. Otherwise, you could be overdrawn on your account. In this article, we’ll explore some strategies to help you keep money in the bank.

Cash Flow 52

Cash Flow Finance Construction Materials 52

Contractor Bookkeeping

AUGUST 16, 2013

Construction Bookkeeping Vs. Regular Bookkeeping. All Accounting Uses The Accounting Equation. Regular Bookkeeping - Is roughly 80% of all accounting for businesses in the world. Regular Bookkeeping - Is roughly 80% of all accounting for businesses in the world. Cash On Hand. Profit And Loss Report.

Work in Progress 60

Work in Progress Accounting Construction Leases 60

Contractor Bookkeeping

JUNE 20, 2013

Construction Cash Flow Example. For anyone reading this who is not familiar with how cash flow works for a mid-size construction job, consider the following general example. Month 2: Labor, materials, G&A (overhead) are expensed by the contractor for Month 2, but no payments (draws) are still behind the job costs for Month 2.

Cash Flow 48

Cash Flow Profitability Accounting Construction 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. No stranger to disruption, the construction industry is experiencing higher levels of digitization than ever before.

Accounting 52

Accounting Software Software FASB 52

Levelset

AUGUST 4, 2022

Running an architectural firm is a bit different than other companies in the construction industry. 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. Cash flow basics. You can think of cash flow as your business’s wallet.

Cash Flow 52

Cash Flow Budgeting Budget Forecasting 52

Contractor Bookkeeping

AUGUST 6, 2014

2 The financials tell the banker your bookkeeper doesn''t understand Construction Accounting. #3 4 You have no access to a construction accountant, not even for quarterly check-ups. #5 Bankers love chatting with accountants because we speak the same language. The Construction Specifications Institute (CSI).

Finance 48

Finance Accounting Construction Banking 48

ProcurementExpress.com

JANUARY 2, 2019

Let me tell you about Construction’s Secret Weapon. In the construction industry, WIPs cover the raw materials, plus labor and overhead, used as part of a project. 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.

Work in Progress 52

Work in Progress Accounting Inventory Budgeting 52

Contractor Bookkeeping

NOVEMBER 18, 2013

These forms are not perfect and not the best for all construction contractors. The first one shown below offers a FREE template you can use to develop your own customized construction Accident Prevention Program. And we go over and over how the foundation of a successful construction company is good solid financial reports.

Accidents 48

Accidents Accounting Construction Profitability 48

Contractor Bookkeeping

AUGUST 27, 2014

Did someone setup QuickBooks by trying to follow the built in template inside QuickBooks and you figured out you cannot get any of the financial and job costing reports you need to operate and grow your construction company? We Do QuickBooks Setup For Construction Beginning With Year 2000 And Up. QuickBooks Pro 2000 And Up.

Contractors 89

Contractors Accounting Work in Progress Profitability 89

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. Owning and operating any business including accounting means sometimes you provide goods and services and not get paid. Knowing The Answers Helps.

Debt 49

Debt Construction Accounting Banking 49

Contractor Bookkeeping

MAY 15, 2015

I am going to talk to you about a "Scammer" that could be draining cash and profits out of your construction company. People who bless their hearts are not even close to being regular bookkeepers, let alone construction bookkeepers, which is completely different from regular bookkeeping as a shovel is from a backhoe! Learn More.

Contractors 48

Contractors Accounting Income Overhead 48

Contractor Bookkeeping

AUGUST 15, 2014

Which QuickBooks Is Best For Your Construction Company? 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.

Contract 48

Contract Accounting Income Contractors 48

Contractor Bookkeeping

JUNE 18, 2012

All Bookkeeping Methods Share The Same Accounting Equations. Regular Bookkeeping - Is roughly 80% of all accounting and bookkeeping for businesses in the world. Expenses - Overhead required to maintain business operations. Construction Bookkeeping Has These Things In Common: Sales - With 1-10 categories. Cash On Hand.

Contractors 58

Contractors Profitability Overhead Equity 58

Contractor Bookkeeping

MAY 5, 2014

Service agreement holders are more likely to be clients that add more value to your construction company because they represent the most loyal segment of your customer base. In some cases they may not even remember you or your construction company name. Construction Accounting As It Relates To Service Agreements.

Cash Flow 48

Cash Flow Agreement Profitability Contractors 48

ProcurementExpress.com

JANUARY 2, 2019

In the construction industry, WIPs cover the raw materials, plus labor and overhead, used as part of a project. 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. How Does WIP Fit into the Construction Business?

Work in Progress 40

Work in Progress Accounting Inventory Budgeting 40

Contractor Bookkeeping

SEPTEMBER 20, 2013

Updating Chart of Accounts. Tax Accountants in an effort to make QuickBooks online easier for them. Most Construction Companies started using QuickBooks Online so they could get to their QuickBooks Pro or QuickBooks For Contractors file anywhere they have internet access 24/7. All Accounting Uses The Accounting Equation.

Contractors 48

Contractors Accounting Profitability Overhead 48

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

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

CivilJungle

FEBRUARY 5, 2021

To obtain the expense likely to be expended in the construction of the job or structure, the calculation is prepared by computing or estimating the amounts required and then calculating the cost at reasonable rates. The exact cost is only known from the account of the full work after the conclusion of the work. Overhead Water Tank. #2.

Estimating 59

Estimating Drawings Roads Plans 59

Contractor Bookkeeping

JUNE 18, 2013

Are you starting or restarting your construction company? Either way you have made an important decision to own and operate a construction company. Most of you came from the skilled craftsman trades, some of you were working as a manager for a construction company. This is called “Construction Management”.

Contractors 48

Contractors Overhead Insurance Bidding 48

Contractor Bookkeeping

FEBRUARY 14, 2014

We have owned and operated several construction companies from the early 1970''s until 2000 and experienced just about every good, bad and ugly thing possible. It is the construction contractors that is most adaptable to change.". They are listed in detail further down. 4 out of 100 contractors will earn between 3%-15% net profit.

FAQ 49

FAQ Contractors Accounting Security 49

Contractor Bookkeeping

JUNE 12, 2013

Contractors That Do Not Earn Large Profits see contractors bookkeeping services as overhead which leads to the following profit drains: They get a cheap computer, tiny monitor, garbage printer, tiny desk and broken down chair that even the dog would not sit in and tell the bookkeeper this is all the company can afford.

Profitability 48

Profitability Contractors Accounting Estimating 48

Contractor Bookkeeping

MAY 2, 2013

3% of your customers are "Grinders" and will try to take all your profit by telling you too "Sharpen Your Pencil" which means do the job for just over your hard cost for material and whatever you pay your employees in gross wages with no allowance for overhead costs. The 80-20 Rule For Financial Success In Construction.

Change Orders 48

Change Orders Contractors Cash Flow Profitability 48

Contractor Bookkeeping

AUGUST 9, 2012

Destroy Construction Company Owners Lives! Not all in house construction bookkeepers are rotten. We are no longer in construction having decided to focus 100% on our construction accounting practice since early 2000. Warning This Article Is Tough On Bookkeepers Who Abuse Their Bosses!

Organization 48

Organization Contractors Accounting Profitability 48

PSMJ Resources

JULY 27, 2012

The Architecture Billings Index (ABI) serves as the leading economic indicator of construction activity, and reflects the approximate 9-12 month lag time between architecture billings, and actual construction spending. Construction Marketing Ideas. Building Design & Construction. Environmental Design & Construction.

Resource 43

Resource Architecture Cash Flow Employment 43

Contractor Bookkeeping

JUNE 13, 2012

Reports Tax Accountants Use Are Profit & Loss And Balance Sheet. For Example - Income can be all of the deposits from bank statements which may have come from a single z-tape each day. As the business owner you may want to know more specific information about your costs and your income in order to make intelligent decisions.

Accounting 48

Accounting Banking Profitability Income 48

Contractor Bookkeeping

MAY 31, 2013

Back In The “Old Days” a set of scales was used – one side for income and other for expenses. There are accounting systems that deal with both quantity and quality. The Accounting Software You Need Depends On The Level Of Reports You Require. High Overhead Costs (in-house server). This online accounting software won’t.

Contractors 48

Contractors Accounting Change Orders Software 48

Contractor Bookkeeping

MAY 31, 2013

Back In The “Old Days” a set of scales was used – one side for income and other for expenses. There are accounting systems that deal with both quantity and quality. The Accounting Software You Need Depends On The Level Of Reports You Require. High Overhead Costs (in-house server). This online accounting software won’t.

Contractors 48

Contractors Accounting Change Orders Software 48

Contractor Bookkeeping

MARCH 25, 2014

As construction work continues to slowly improve, we see more project owners which are requiring contractors to be bonded. However, your ability to obtain and increase your bonding capacity can make a huge difference in the success of your construction business. These are professionals who specialize in construction surety programs.

Cash Flow 52

Cash Flow Accounting Profitability Work in Progress 52

Construction Cost Estimating

JULY 26, 2011

Construction Cost Estimating Blog. Construction Contract - General Overview. A construction contract is a contract purposely carried off for the construction of an asset or a group of interdependent or interrelated assets relating to the design, technology and function or ultimate purpose or use. adsense analytic.

Estimating 40

Estimating Contract Construction Documentation 40

Business Facilities

OCTOBER 17, 2016

An airport of entry (AOE), usually designated with the word “international”, provides customs and immigration services for incoming flights. Businesses in an FTZ may see a reduction in duties on labor, overhead and profit. billion in 2014, accounting for 12.1 FTZs jumped 24.8 percent from the previous year, to $99.2

Risk 40

Risk Airports Nashville Zoning 40

Job Order Contracting

SEPTEMBER 12, 2018

via Four BT, LLC – 4BT enables owners to consistently deliver quality facilities repair, renovation, and minor new construction projects on-demand, on-time, and on-budget. Application: This standard applies to warehouse or large overhead rolling doors. Door, Manual, Overhead. ARCS-BAR-01-06M Frequency: Semi-annually.

Inspections 100

Inspections Equipment Electrical Safety 100