article thumbnail

Accounting for Retention Receivable & Payable: A Contractor’s Guide

Levelset

Peterson , a construction finance educator and author, “The retention in the retention receivable account is not collectible yet because the contractor has not earned the right to receive it.” Debit Credit Income $100,000 Accounts receivable $90,000 Retention receivable $10,000. According to Steven J.

article thumbnail

Construction Company Failure Root Causes

Contractor Bookkeeping

Education is the foundation for shifting paradigm. In ancient Greece, Socrates argued that education was about drawing out what was already within the student. "I Cash flow issues kill contractors even though they have profit. Poor scheduling affects production and cash flow.

professionals

Sign Up for our Newsletter

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

article thumbnail

Process Dependent Vs. People Dependent Increases Contractor's Profits

Contractor Bookkeeping

Then suddenly you decided they needed to get an education in return you were still expected to continue to provide their food, clothing and shelter for another twelve years or so. Education is the foundation for shifting paradigm. Cash flow issues kill contractors even though they have profit.

article thumbnail

Sparkie, Bricky, Drippy, Chippy and all fluent in BIMmy!

DebunkTheBIM

The small operators lug the costs of working in a volatile industry, expensive tools, taxes and regulations, uneven cash-flow, bad weather. The ones employed by large corporations are burdened by disproportionally large armies of managers with often disproportionally large income expectations.

BIM 48
article thumbnail

Unique Bookkeeper Errors Reduce Contractor Profits

Contractor Bookkeeping

Financial Reports Were Worthless Profit & Loss Reports showed massive income because Cost of Goods Sold (COGS) accounts were understated. This One Bookkeeper Error Caused the contractor to OVERPAY HIS ANNUAL INCOME TAX. The Key Colum - Is the Percentage (%) of Income. Education is the foundation for shifting paradigm.

article thumbnail

Starting Profitable Construction Company Unique Secrets Revealed

Contractor Bookkeeping

Education is the foundation for shifting paradigm. In ancient Greece, Socrates argued that education was about drawing out what was already within the student. "I 3 Your Income Tax Return Preparer. Cash flow issues kill contractors even though they have profit. Poor scheduling affects production and cash flow.

article thumbnail

Is There a Future in Commercial Investment Properties for You?

Wolgast Corporation

On a surface level, it seems like a long-term, but easy investment that will generate ongoing income and also potentially appreciate in value the longer you own it. Prior to selecting a property and submitting a purchase agreement, you’ll want to evaluate and compare your options to make an educated decision on the best potential.