Cash flow management is crucial for any construction business. As the owner, you understand the importance of maintaining your finances....

In the construction industry, efficient cash flow management is crucial for success. One of the most powerful metrics to help you...

Here's a comparison table that highlights some key differences between accounts payable and receivable

In construction accounting, understanding overbilling and underbilling is essential for contractors. While underbilling may lead to cash flow deficits, overbilling can have significant legal and financial consequences if not managed carefully. Contractors need to balance their billing practices to maintain healthy cash flow, adhere to contractual terms, and avoid unnecessary risk. This article will explain what overbilling is, why contractors use it, and how it can affect yo

If your bonding company rejected your application or your bank denied your line of credit, your working capital turnover ratio might be the culprit. This single metric tells lenders, sureties, and investors whether you're efficiently managing your cash or drowning in it. For construction companies operating on razor-thin margins, understanding and optimizing your working capital turnover isn't just good accounting practice. It's the difference between winning that next big j

If you're a business owner, you're likely to receive cash payments from your customers when you sell goods or provide services. Recording these cash transactions accurately is essential for maintaining organized financial records. This is where a cash receipt and a cash receipts journal come into play. In this article, we’ll explain what a cash receipt is, how to use a cash receipt template, and guide you through the process of managing and recording cash receipts in your a

Whether you’re steering a bustling construction firm or a dynamic service-based business, a finely tuned Chart of Accounts (COA) is your key to unlocking a clear, confident view of your company’s financial health. At its core, the COA is the bedrock of a seamless bookkeeping and accounting system. It empowers you to meticulously track every financial transaction—revenues, expenses, assets, liabilities, and equity, while effortlessly generating vital reports like income stat

Sage 100 Contractor is a better solution that fully supports your construction company as it grew and expanded. 5 keys to convert from Quick

In this guide, we discuss what construction work in progress (WIP) is, why work in progress reports are important, how to create WIP...

Overhead costs are all costs associated with any construction or renovation project, and they make up generally a substantial portion of...

In the construction industry, managing cash flow is one of the most difficult yet critical tasks. While many construction projects appear to be profitable on paper, many contractors face financial difficulties due to poor working capital management. Working capital, often referred to as the “cash cushion,” is the liquidity needed to cover short-term obligations, such as materials, labor, and equipment costs. Without adequate working capital, even the most successful projects

Indirect costs in construction can often be the silent profit killers, creeping in without much fanfare and eating away at the profit...