What are Underbillings? 5 Easy Ways to Stop Cash Flow Drain
Underbilling is the opposite of overbilling and occurs when a contractor does not invoice their customer for completed work. Not complete pr
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Hannah Nguyen
- Mar 23, 2022
- 4 min
8 Most Common Construction Accounting Mistakes That Cause Catastrophic
Incorrect overhead rates create problems because they do not accurately describe the current overhead of a business
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Hannah Nguyen
- Mar 2, 2022
- 3 min
Calculating Cost of Goods Sold for Contractors - Expert Guide
As a contractor, you are working on many projects, whether it is a small task or a big project, it requires months, years, or even decades to complete. Thus, meticulously tracking the cost of goods sold and keeping them separate from regular business expenses is key when it comes to measuring job profitability. What is the Cost of Goods Sold in Construction? Cost of Goods Sold (COGs) refers to the direct costs incurred in the production of any products and services by a compa
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Hannah Nguyen
- Feb 16, 2022
- 4 min
Everything Contractors Need to Know About Retainage
Construction is one of the hardest industries to manage cash flow in. For many projects, general contractors and subcontractors often face large up-front costs and frequent, long delays between expenses and payment. As a business owner, you may know that you aren’t getting paid in full until the work is completed and accepted. The construction retainage practice throws another wrinkle into the process. The retainage allows a project owner to hold off on paying the full price
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Kieu Nga
- Nov 13, 2021
- 2 min
Difference Between Debtor And Creditor
Debtor and Creditor are common terms when it comes to bookkeeping. Although these two terms might seem straightforward, it's important to make clear the difference between the two and how both need to be accounted for in your financial records. Simply put, a debtor is a person or a legal body (such as a company, organization, or government) who owes money to another party. For a business, the amount to be provided is usually a result of a loan provided, goods sold on credit,
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Tammy Hoang
- Nov 11, 2021
- 1 min
What Is An Overbilling In Construction?
Overbilling in construction occurs when a contractor bills for contracted labor and materials before that work is actually completed
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Miley Nguyen
- Oct 14, 2021
- 5 min
How To Improve Your Construction Company’s Profitability
Construction companies do not only build structures, they head for building profits also, of course. Although most of them know how to control their constructive projects pretty well, not many can be that good when it comes to the aspects of structuring their profits. There are reasons for this, but the main factor would come from the operation way of the building industry. Specifically, to be competitive in the market, many business owners have a tendency to focus on bidding
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Miley Nguyen
- Apr 20, 2021
- 2 min
12 Job Costing Tips for Quickbooks
Whether you're using jobs or sub-jobs, each one should have its own Estimate
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Miley Nguyen
- Apr 13, 2021
- 3 min
How To Get Government Construction Contracts?
Winning government construction contracts may be a lucrative method for business growth if your construction company is ready.
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Tammy Hoang
- Aug 19, 2020
- 3 min
Common risks in Construction Project Accounting
After a cheerful and enthusiastic project planning, many contractors are left wondering what happened to the expected enormous profit and only saw little, or worse, negative profit at the end of the project. One time, maybe you were unlucky. But then the third or fourth times it happened, you seriously need to look into identifying and solve the problems. Here are some of the reasons, which are not really obvious at first glance, but definitely affect contractors' bottom line
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