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Types of Capital for Construction Businesses

Levelset

Several different types of capital — working capital , debt capital , and equity capital — are common in the construction industry. That’s because other forms of capital — like labor or equipment — can’t generate value if you don’t have enough cash to take on new jobs, acquire materials, or cover overhead.

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Forward or lagging: The variable marketing challenge

Construction Marketing Ideas

Some taking the lead with sustainability and environmentally-creative construction; others (fighting for traditional fixed bid work) have discovered their businesses struggling under the new trend for public-private partnerships, with massive and risky project bundling. innovations'

Debt 48
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10 Contract Terms for Higher Profitability

PSMJ Resources

Receiving money up front, depositing it, and not crediting it to the client until the last invoice has been submitted allows you to avoid a bad debt, and earns maximum interest on the deposit. With government clients, this term can reduce overhead, making your contract price more attractive. Shorten the billing/payment cycle.

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Construction Bookkeeping Unique Features

Contractor Bookkeeping

Expenses - Overhead required to maintain business operations. Expenses - Overhead is extremely complex because some expenses in regular Accounting are actually Cost of Goods Sold in construction accounting. Chart of Accounts Bad Debts. Chart of Accounts Bad Debts. Item List Bid Bond Deposits. Billing Rate List.

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Contractors Are Renting Rather Than Buying More Equipment.

ENR Construction

The increased competition has narrowed already slim bidding margins, forcing contractors to eke out a financial edge wherever possible. Equipment rentals allow contractors to shift downtime risk while trimming expenses, including licensing, insurance, taxes and debt, among others. rental business grew an estimated 18.6%

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Bookkeeper Vs. Accountant Vs. C.P.A. For Your Construction Company

Contractor Bookkeeping

At that, sadly, is during the bankruptcy proceedings or at the auction where their entire construction company is being sold for pennies on the dollar to pay off some of the mountain of debt they accumulated. Expenses - Overhead required to maintain business operations. Cost of Goods Sold - If they sell products with 1-4 categories.

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Unique QuickBooks Setup For Contractors

Contractor Bookkeeping

Chart of Accounts Bad Debts. Item List Bid Bond Deposits. Chart of Accounts Intercompany Transfers. Chart of Accounts Payroll. Chart of Accounts Payroll Taxes. Chart of Accounts Payroll Tax Liabilities. Chart of Accounts Customer Discounts. Chart of Accounts Customer Checks Returned From Bank. Chart of Accounts Jobsite Costs.