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…
Why cost codes are critical to construction business success
No matter the size of your construction business, cost codes are essential for tracking where and how you incur project costs. Although a job’s overall cost will tell you what was spent and how much was made, it won’t tell … Read more…
Dos and don’ts of crisis management for contractors
From the Great Recession of more than a decade ago to the ongoing COVID-19 pandemic, construction companies have endured some tough lessons over the years. To help you avoid learning some things the hard way, we’ve compiled a list of … Read more…
Updates on Revenue Recognition & Lease Accounting for Construction Companies
Knowing when to adopt and how to apply the new Revenue Recognition and Lease Accounting standards can be a confusing and daunting task for many construction companies. Preparing for this process can take time and effort. The Journal of Accountancy … Read more…
Considerations for Construction Companies Regarding Revenue Recognition Standard Topic 606
Owning and operating a business is tough. It comes with a sometimes overwhelming amount of stress and responsibilities; maintaining client relationships, meeting deadlines, retaining and recruiting invaluable employees, adapting to new technology, keeping up with the latest laws and regulations, … Read more…
