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Restoration: How to Manage Cash Flow While Waiting for an Insurance Check

Levelset

A cash flow statement is an analysis of incoming and outgoing cash for a certain time period (usually one month). Each project you work on has expenses that need to be paid and income that will be received. Protect your lien rights. The right to file a mechanics lien is the most powerful tool in your toolbelt.

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How To Negotiate A Higher Credit Limit With Your Building Material Supplier

Levelset

A standard financial statement package includes four reports: Balance sheet Income statement Cash flow statement Work in progress (WIP) report. Showing them proof of expected income will go a long way to calming their fears. Provide a plan. Often you can request an increase in credit by showing the supplier how you plan to repay it.

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

Levelset

The invoice is recorded in the chart of accounts with a credit to the income account for $100,000, a debit of $90,000 to accounts receivable, and a debit of $10,000 to retention receivable. Debit Credit Income $100,000 Accounts receivable $90,000 Retention receivable $10,000.

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How to Avoid Running Out of Cash on a Construction Project

Levelset

Without incoming revenue to cover those costs, you’ll have to overbill another project to cover them. You can save your existing cash reserves to cover payroll and overhead costs, and the extended repayment terms ensures that you’ll have project income in the bank when the bill comes due. Underbidding. Learn More.

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#130:  Secured Lenders' Rights to Construction Contract Payments

NH Construction Law

It happens this way: A contractor or subcontractor borrows money from a lender, and as security for the loan it gives the lender an assignment of or lien on its receivables and contract rights. ” Thus far New Hampshire has enacted no such protective law for homeowners.

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9 Tips for Starting an Architecture Firm

Levelset

Bill monthly for consistent income. This ensures that you will have a regular stream of income and allows you to budget for monthly income and expenses. . If your clients are slow to pay (a common problem in construction), you need to know your legal rights, including the right to file a mechanics lien.

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A Cash Flow Guide for Architects

Levelset

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. Operating activities include income from sales minus labor expenses and other costs of doing business. Cash flow basics. You can think of cash flow as your business’s wallet.