Reviewing revenue recognition for construction companies
While many businesses handle sales in a single transaction, construction contracts often cover months or even years and include multiple payments. As you’re well aware, the longer-term nature of construction projects can prevent contractors from billing and collecting on a … Read more…
Give your construction company’s bonding capacity a solid foundation
A high bonding capacity is a strategic objective of many construction businesses. Knowing you can get the necessary underwriting from your surety gives you the freedom to bid on jobs well suited to your strengths — not to mention bigger … Read more…
5 change-order pitfalls construction companies should avoid
Properly documented and handled change orders can mean more profitable jobs for construction companies. When the process doesn’t go smoothly, however, you risk not getting paid on time — or at all — for the extra work. Here are five … Read more…
Could the Work Opportunity Tax Credit help your construction company?
The construction industry has been facing a labor shortage for years. Although there are various ways to tackle the challenge, one approach to keep in mind is expanding your hiring pool to, in part, avail yourself of a potentially valuable … Read more…
Ensure your construction accounting system has the right features
Construction accounting is distinctively complex. Unlike other businesses that rely heavily on a general ledger to track finances, construction companies need to master a project-based approach to accounting. After all, each of your jobs serves as an individual profit center … Read more…
Tax-saving fundamentals for construction companies
By the time you read this, you might have already filed your construction business’s federal tax return for the 2021 tax year. Or maybe you’ve requested an extension while you pull together more documentation. Whatever the case may be, now’s … Read more…
Don’t let profit fade dim your hopes for a good year
A gradual decline in expected gross profits over the course of a project is known as “profit fade.” It not only undermines the financial performance of construction companies, but also may raise red flags with sureties and lenders. For these … Read more…
Bookkeeping for builders: 8 tips to consider
As you’re no doubt aware, bookkeeping for builders is challenging. Construction companies tend to have unstable workforces, wage rates that can change by location, and multiple ongoing projects with various costs and durations. Here are some bookkeeping tips that can … Read more…
Boost cash flow with savvy accounts payable strategies
Managing accounts payable is a critical task for any business, but it’s particularly important for construction companies. General contractors juggle payments to a variety of subcontractors, suppliers and other entities. (We’ll refer to them collectively as “vendors.”) And the players … Read more…
How creditworthy is your construction business?
As you probably know, construction businesses are frequently scrutinized for their creditworthiness and financial stability by sureties, banks, insurers and other parties. Your ability to build and protect your financial reputation is critical to winning work and managing risk. Building … Read more…
