You're tracking job costs using QuickBooks or Sage. You're entering expenses and running reports. So why are you still surprised when jobs come in over budget? Here's the uncomfortable truth: Most contractors think they're doing true job costing when they are really just doing bookkeeping recording costs after the fact, not using data to protect margins in real-time. Construction job costing software is not merely about tracking what you spent. It's about understanding precis

For Small to Mid-Sized Construction Contractors in today's volatile industry, aggressively slashing your tax bill isn't just smart business, it's essential for survival and growth. With rising material costs and labor shortages, leveraging every possible construction tax saving  is the key to boosting cash flow and reinvesting in your future. The Urgency is Now: IRS rules are evolving rapidly under new legislation like the OBBBA 2025 . Missing out on these specialized deducti

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

Accounting and bookkeeping for construction companies are a bit different than those for other industries. Construction companies face a...

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

Bookkeeping may not be the most exciting part of running a construction company, but it is the most crucial defense against losing profit in a tight-margin industry. Accurate records of job costs, payroll, and billing do more than just ensure compliance, they protect your cash flow, help you price projects correctly, and serve as the foundation of your future growth. As margins tighten and project complexity increases across the construction industry, many Small to Mid-Sized

Many SMEs still rely on traditional accounting methods, which are often designed for retail businesses or service industries. This isn't just an oversight it's a financial misstep that can significantly undermine your business. When your multi-million dollar, multi-year projects are treated the same as selling a simple product, you're opening yourself up to hidden losses, tax issues, and even lost bonding capacity. The truth is simple: Construction accounting is not just an e

Accounting is one of the most important parts of business management and administration. In the construction industry, contractors face certain difficulties in accounting due to their unique challenges. In this article, we aim to provide construction business owners with the basic knowledge of construction accounting and the key differences between construction accounting and regular accounting. We will also introduce essential construction accounting concepts specialized pri

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

Working in the construction industry requires meticulous attention to tax details when you have to invest in tax planning throughout the...

Managing accounts receivable in your construction business can be tough. The construction industry is notorious for delayed payments and...

Cash vs. Accrual? This essential guide helps contractors choose the right accounting method to accurately track profitability, manage cash flow, and secure bonding.

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...

In the construction industry, Accounts Payable (AP) is more than just paying bills; it’s a critical lever for controlling cash flow and maximizing profitability. Too often, contractors manage AP reactively, focusing only on paying bills when customer payments come in, leaving vendor payments to be handled later. This reactive approach is a cash flow time bomb: it jeopardizes key vendor relationships, makes you miss early payment discounts, and introduces job costing errors a

The myth that construction is inherently a low-margin industry is perpetuated by outdated practices. While the market is fiercely competitive, the key differentiator between struggling contractors and successful ones lies in effective cost control  and proactive cash flow management . To achieve and sustain an above-average construction profit margin, your company must focus on these six strategic pillars: 1. Set SMART Goals for Profitability 2. Achieve Mastery of Job Costing