Here's a sobering reality: most construction companies lose 15-20% of their potential profit simply because they don't track job costs accurately. They bid projects based on guesswork, discover hidden costs too late, and wonder why profitable-looking jobs end up in the red. If you've ever finished a project thinking you made money, only to discover later that you barely broke even or worse, lost money, you know exactly what we're talking about. Accurate job costing isn't jus

For individuals in the construction industry, deciphering overhead expenses can be a complicated task, and calculating overhead accurately is a crucial part of this process. Excelling in this area requires understanding and estimating these additional costs, thereby preventing any unwanted cost escalations, as overhead is one of the significant costs that can impact profitability if not managed properly. Proper handling of overhead costs is essential in simplifying complex p

COSG stands for Cost Of Goods Sold , is a critical factor influencing the financial health of construction firms. It plays a vital role...

Sadly, disputes are all too common in the construction industry. A wide array of issues can give rise to them, such as disputes over work...

Construction contracts are the backbone of every project you take on. Whether you're a general contractor bidding on a commercial build or a subcontractor negotiating terms, the type of contract you sign directly impacts your cash flow, profitability, and risk exposure. Yet too many construction businesses sign contracts without fully understanding the financial implications. The wrong contract type can drain your profits, create cash flow nightmares, or leave you exposed to

In the competitive world of construction, laying the foundation is as crucial as building trust with customers. If customers don't have...

Construction is about much more than the physical act of building. Effective cost management plays a huge role in this industry. Among...

Construction businesses differ from other businesses in that they must deal with liquidity issues that other businesses do not face. It...

If you own a construction business, you're probably familiar with the term "overhead cost". But what do general overhead costs mean in...

Construction contracts are the lifeblood of your project. As a contractor, one of the biggest decisions you'll face is deciding on the...

In the world of the construction business, a general ledger (GL) is like your financial journal. It keeps track of every penny flowing in and out. You can view the general ledger as your company's financial storybook. We will get into the specifics of a general ledger construction this post, discussing its importance, how it works, and why the construction industry needs one. Table of Content: What is Inside a General Ledger? How Construction Businesses Use a General Ledger

As a construction project manager, you have to handle many complex tasks, and one of the most critical ones is managing finances....

In the world of construction, there's always a buzz of innovation. This industry never stops evolving, bringing fresh methods, materials,...

For a construction business owner, the income statement  serves as a key tool for financial evaluation. It’s a financial document that...

Are you wondering how much cash flows in and out of your construction business? The cash flow statement is your essential financial tool...

Every successful business owner knows how important it is to keep an eye on their business's finances . One indispensable tool for this purpose is the balance sheet. However, if you own a construction company, you might find the term "construction balance sheet" a little intimidating. Let's demystify it! According to industry research, poor financial management is a leading cause of construction business failures, with over 50% of contractors citing cash flow issues as their

Many construction business owners have a common question. What access should they give to their bookkeeper? It's about finding the right...

Effectively managing your construction business finances is crucial for maintaining financial stability and achieving long-term success....