Levelset

AUGUST 4, 2022

Where direct labor is the percentage of salaries that are spent on billable work (rather than overhead time). Knowing that it’s difficult to estimate exactly how long a project takes, it’s a best practice to be very conservative with the estimated time needed, and add a buffer of 20% or more to the estimated total hours.

Cash Flow 52

Cash Flow Budgeting Budget Forecasting 52

PSMJ Resources

JULY 10, 2013

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.

Profitability 43

Profitability Contract Negotiation Debt 43

Contractor Bookkeeping

AUGUST 16, 2013

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. Chart of Accounts Estimates. Estimates By Job.

Work in Progress 59

Work in Progress Accounting Construction Leases 59

ProcurementExpress.com

JANUARY 2, 2019

In the construction industry, WIPs cover the raw materials, plus labor and overhead, used as part of a project. Meaning, they’ve likely paid for most of the materials, labor, and overhead a while back. Or, worse, your company could go into debt should things slow down later in the year. Well, not exactly. Final Thoughts.

Work in Progress 52

Work in Progress Accounting Inventory Budgeting 52

Contractor Bookkeeping

AUGUST 29, 2013

For example let''s examine a contractor who is paying an estimator or field employee responsible for gather information $25.00 an hour plus overhead. The calculations for fully burdened labor rate would look something like the diagram below: In this example the estimated cost per hour including payroll taxes and benefits is $37.72

Contractors 51

Contractors Accounting Banking Project Management 51

ProcurementExpress.com

JANUARY 2, 2019

In the construction industry, WIPs cover the raw materials, plus labor and overhead, used as part of a project. Meaning, they’ve likely paid for most of the materials, labor, and overhead a while back. Or, worse, your company could go into debt should things slow down later in the year. Well, not exactly. Final Thoughts.

Work in Progress 40

Work in Progress Accounting Inventory Budgeting 40

Contractor Bookkeeping

MARCH 9, 2013

Some Contractors Hire Part Time Secretaries to do everything including construction bookkeeping and then wonder why their company debts keep growing and crushing them. Following up to be sure a written estimate has been sent to every customer. Separate direct and indirect job costs from overhead. Maintain the petty cash journal.

Contractors 48

Contractors Cash Flow Banking Change Orders 48