The phone call came on a Tuesday afternoon: a contractor friend learned he owed $47,000 in back wages, overtime, and penalties. His crime? Treating workers as 1099 independent contractors when they should have been W-2 employees. The Department of Labor had been watching, and his documentation couldn’t withstand scrutiny. This scenario remains disturbingly common across the construction industry. With mandatory W-2 overtime reporting now required under the new Box 12 Code TT

Picture this: You just completed a $150,000 commercial renovation. Your crew worked 800 hours, you came in on schedule, and the client is thrilled. But when you run your job costing report, the numbers tell a different story, your estimated profit of $22,500 (15%) has shrunk to just $4,800 (3.2%). What happened? The culprit is often hiding in plain sight: inaccurate labor burden calculations . While you carefully tracked material costs and equipment rentals, your labor esti

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

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

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