article thumbnail

5 Ways to Stop Your Company’s Money Leaks & Blockages

Construction Business Owner

The funnel absorbs and reduces the profit output by paying invoices for job costs and overhead expenses. The leftover flow is net profit cash exiting the end of the funnel into your equity account. A steady flow of sales volume enters the funnel in the form of revenue. In addition, leaks cause some money to flow out of the funnel.

Equity 246
article thumbnail

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.

Debt 97
professionals

Sign Up for our Newsletter

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

article thumbnail

Contractor Bookkeeping Vs. Regular Bookkeeping

Contractor Bookkeeping

Business Owners - Need three basic reports, Cash, Profit and Equity. Assets - Liabilities) = Equity. Expenses - Overhead required to maintain business operations. Expenses - Overhead is extremely complex because some expenses in regular bookkeeping are actually Cost of Goods Sold in construction accounting. Cash On Hand.

article thumbnail

Contractor Accounting Vs. Regular Accounting

Contractor Bookkeeping

Business Owners - Need three basic reports, Cash, Profit and Equity. Assets - Liabilities) = Equity. 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. Cash On Hand.

article thumbnail

QuickBooks Online Converted To QuickBooks Contractors Desktop Online

Contractor Bookkeeping

Business Owners - Need three basic reports, Cash, Profit and Equity. Assets - Liabilities) = Equity. -. 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.

article thumbnail

Latest Trend, Bookkeeper Works For Contractor That Goes Bankrupt

Contractor Bookkeeping

If your bookkeeper is an employee and they have no equity interest in your company they do not have the same concern about your construction company''s cash flow and bottom line profit that you do because when it fails they can blame you for "Not knowing how to run a business" and go wreak havoc elsewhere.

article thumbnail

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

Contractor Bookkeeping

Business Owners - Need three basic reports, Cash, Profit and Equity. Assets - Liabilities) = Equity. -. 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.