It’s Friday afternoon. Your crew just wrapped up another big project $400,000 in revenue, $75,000 profit on paper. But your checking account is nearly empty. Payroll hits Monday, and the numbers just don’t add up. If that sounds familiar, you’re not alone. Over 80% of construction business failures are caused by cash flow problems, not lack of work. The culprit usually traces back to the same root: inaccurate estimating . An accurate construction estimate is more than a price

What is Progress invoicing? Let’s take the scenario at the beginning of the blog. The contractor sent over the estimate and started...

In the fast-paced world of construction, business owners need to grasp the intricacies of construction accounting, particularly...

Your balance sheet is one of the most scrutinized financial statements in construction. Lenders review it before approving loans. Sureties analyze it before issuing bonds. Project owners examine it before awarding contracts. When negative liability accounts appear on your balance sheet, it raises immediate red flags that can cost you opportunities and credibility. Understanding why negative liabilities occur and how to fix them isn't just about clean bookkeeping. It's about

Accounting and financial management is a challenging task in all industries. Cash Basic Cash basic accounting is the easiest and simplest...

Running a construction business means constantly juggling job sites, materials, crews, and client demands. The last thing you need is financial chaos . Modern cloud accounting platforms are specifically designed to give small to mid-sized contractors the control, speed, and accuracy needed to maximize job profitability. Here are the three core benefits of leveraging specialized construction accounting tools: Real-Time Control from the Field (24/7 Access) The profitability of

On June 5, 202, the Paycheck Protection Program Flexibility Act (PPPFA) was signed into law. The PPPFA makes a handful of significant...

In order to earn a success in Construction industry, we need a broader understanding about effective Construction Accounting and expense...

1. Access everything 24/7. In the field or on location Manage job costs Stay on schedule and stick to a budget. Easily track time and expenses for each project. Run valuable profit and job cost reports to always know where you stand. Automate accounting tasks Your data quickly and securely syncs across devices so you never have to fool with paperwork. Add tools and apps Create AIA-compliant invoices, track working crews with GPS, track time on the phone, and more. 2. Get p

1. Review the Requirements of PPP Congratulation! You got a PPP loan for your business. Before using, let’s review all the requirements...

Now, we hope that you have received PPP funds to support the business. It is time to think about what you should do after receiving the...

Managing Accounts Payable (AP) in a construction company is a vital part of maintaining the company’s financial health and ensuring smooth project execution. Accounts payable in construction company refers to the money owed to suppliers, subcontractors, laborers, and other service providers for materials, labor costs, and general business expenses. Proper accounts payable management helps construction firms keep track of their payment records, avoid late payments, and mainta

As a contractor, your focus must extend beyond the job site to securing your financial foundation. While managing crews and projects is essential, mastering Accounts Payable (AP)  is the unsung hero of cash flow and profitability. For a construction firm, AP is not a simple liability; it's the core system for tracking Cost of Goods Sold  and managing legal compliance. Failing to properly manage this area from correctly allocating costs to handling complex lien waivers and ret

In the high-stakes world of US construction, many small to mid-sized contractors (SMEs) treat budgeting as a "one-and-done" task, something performed during the bidding phase and then tucked away in a folder once the contract is signed. This is a critical mistake. A budget isn’t just a static estimate; it is a dynamic financial roadmap. For General Contractors and Subcontractors, failing to establish and track a rigorous budget is the fastest way to "profit bleed" the slow, i

Accounting is an essential part of every business to ensure proper financial management. However, construction accounting and regular...

In the world of Percentage of Completion (POC) Project Accounting, two critical terms often dictate a contractor's financial health: overbilling and underbilling. While overbilling may signal potential risks, underbilling  is often the silent culprit, slowly eroding cash flow and distorting the true profitability of your projects. For Small to Mid-Sized Contractors (SMEs) , chronic underbilling reflects flaws in project accounting, turning earned revenue into cash you can’t a

As a contractor, managing your finances can be a daunting task. QuickBooks, a leading software in bookkeeping and accounting, promises to...

Do you often lost track of your invoices and billing statements? In just 7 minutes, you'll learn how to manage your billing by using...