Choosing the wrong cost accounting method can mean the difference between profitability and loss on every project. Understanding whether job costing or process costing fits your business model isn't just an accounting exercise, it directly impacts your bidding accuracy, project profitability, and long-term success. While most construction companies naturally gravitate toward job costing due to the custom nature of their work, understanding both methods helps you make informe

Every construction owner knows this pain: You finish a project thinking you made 8% profit, but when the books close, you're lucky to see 2%. Without accurate, real-time cost tracking by phase and cost code, you're flying blind. You can't make informed buyout decisions, you over-bill or under-bill clients, and you don't catch cost overruns until it's too late to fix them. This is where   Sage 100 Contractor  becomes your financial control tower. In this guide, we'll show you

In the construction business, cash flow is as crucial to your success as bricks are to a building project. Effective invoicing can't be an afterthought; it is a key ingredient for maintaining healthy cash flow. Timely, clear and detailed construction invoices minimize disputes and ensure faster payments. Let's dive into the fundamentals of contractor invoicing and how it can supercharge your cash flow. Table of Content: Why Do You Need a Contractor Invoice in the Construction

One of the most common reasons contractors and subcontractors become insolvent is they run out of cash. In the construction industry, you...

One of the three financial statements that companies provide on a regular basis is a balance sheet. Another is a profit and loss (P&L) statement. These statements give creditors, market analysts, and investors the means of evaluating the financial strength and growth potential of a company. The third financial statement is called the cash-flow statement. While the balance sheet and the P&L statement may seem similar at first glance, they serve completely different purposes

If you are working in the construction industry, you might be familiar with the term “Job costing”. But how do you describe it in words? What is job costing? Do you truly know enough about job costing to make a better budget and plan for similar projects in the future? Why do you have to know about job costing? In this article, we will bring you a clear picture of the term "Job costing" and make it easier for you to understand other related terms that you should distinguish i

Over the last year, the Paycheck Protection Program (PPP) has assisted numerous company owners, including general contractors,...

A risk management strategy is required for any project, no matter how large or small.

Job costing means income and expenses tracking by a job, and then comparing its actual amount to its estimated amount.

Whether you’re using QuickBooks Desktop or QuickBooks Online, managing bad debts is crucial to maintaining accurate financial records. In...

it is essential for you to write off the uncollectible invoices.

Overbilling can become an issue and may lead to a situation called “job borrow”

Payroll is one of your biggest expenses, often accounting for 40-50% of total project costs. For construction companies, payroll isn't just about cutting checks. It's about managing prevailing wages, union rates, certified payroll reporting, workers' comp classifications, and complex job costing. Get it wrong, and you're not just wasting money you're risking penalties, losing profit margins, and damaging employee morale. Here's the hard truth: most construction contractors ar

Construction projects always require a large number of funding sources, including costs related to office space, equipment, materials

This is the most used and helpful report for contractors. By showing both estimate and actual cost and estimate and actual revenue, this rep

It can be said that accounting is a necessary part of every business to ensure the financial matters of the company.

Creditors can be used to describe a person who gives a loan to any other person and in return

Financial statements (financial statements) are a form of documents showing quarterly and annual business results of a company.