Accounting Income Lien Profitability 
Levelset
JUNE 6, 2022
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. Retention receivable and payable is different from accounts receivable and payable. Steven Peterson.
Levelset
FEBRUARY 14, 2022
There are a lot of things that are different about construction accounting, but retainage may be one of the most unique. These amounts withheld from project payments can be a challenge, since they often account for a contractor’s entire profit margin on a job. Read more: The ultimate guide to construction accounting.
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Levelset
MAY 2, 2022
If your credit limit hasn’t been raised recently, it may be based on outdated financial statements — the ones you provided when you originally opened the account. If you can show that you’ve been growing and seen an increase in work while remaining profitable, the vendor may feel comfortable increasing your limit. Provide a plan.
Contractor Bookkeeping
OCTOBER 4, 2013
There are a number of people who pass out advice on how to start a profitable construction company; however, very few have actually done it and fewer still had a clear understanding of where they were making or losing money and fewer yet have ever gotten past the point of owning a J.O.B. Starting Or Re-Starting A Construction Company Is Easy.
Contractor Bookkeeping
FEBRUARY 28, 2014
Cash flow issues kill contractors even though they have profit. Sales tax liens against contractors twenty two times higher than any other business. Ignoring Profit Centers and Key Performance Indicators (KPI). Every contractor’s income is the average of their customers and client’s income.
Levelset
APRIL 5, 2022
Most construction businesses focus on their profit margins — making sure that revenue exceeds costs for each job. Otherwise, you could be overdrawn on your account. Without incoming revenue to cover those costs, you’ll have to overbill another project to cover them. Why contractors run out of cash. But what about cash flow?
Levelset
AUGUST 4, 2022
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. This is in contrast to an accrual basis , which is a form of accounting that tracks revenue and expenses when they are incurred, not when they are paid or received.
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