Bookkeeping

You can use this method of revenue recognition even if you’ve received payments during the contract period. The more projects your construction company manages and the more workers you contract, the more important it is to have your accounts in order. If you operate across state lines, you may also need to account for additional […]

Additionally, handling subcontractor payments—often with complex contract terms—requires precise record-keeping to avoid disputes and ensure compliance with labor laws. Accurate records make tax filing easier and help ensure compliance with tax regulations. Keep track of deductible expenses, such as equipment depreciation, and ensure taxes are filed on time to avoid penalties. Use time-tracking software or

Accurate and well-organized bookkeeping provides a clear and comprehensive view of the company’s financial position. It allows construction company owners and managers to have real-time access to crucial financial data, such as income, expenses, assets, liabilities, and equity. This transparency is vital for making informed decisions, tracking financial progress, and identifying areas that require improvement.

It is imperative that all stakeholders commit to this call to action for the benefit of the industry as a whole. In the construction industry, project delays and cost overruns are significant challenges that can impact the overall success of a project. These issues often arise due to various factors, including unforeseen site conditions, inadequate

They should be experienced in construction bookkeeping and accounting, including handling construction contracts and managing the financial details of every project. The best construction accounting software makes it easier to track projects fully, estimate building costs and manage teams — whether it’s through built-in tools or direct integrations. It took a hit in pricing because

Eligible care costs are those incurred while you work or look for work. If these requirements aren’t met, then you must report the rental income (if you rented the property for 15 days or more per year). As rents continue to rise in many areas, you may decide to help your financially challenged family members

Individuals and C corporations are eligible to claim the NOL deduction. Partnerships and S corporations generally aren’t eligible, but partners and shareholders can calculate individual NOLs using their separate shares of business income and deductions. While taking current deductions can significantly lower your company’s taxable income, it isn’t always the smartest move. The right amount

These can’t go to managers, administrators, clerical workers or other professional employees. Also, safety awards won’t qualify for favorable tax treatment if the company grants them to more than 10% of eligible employees in the same year. To qualify for favorable tax treatment, achievement awards must be granted to employees for either promoting safety in

In addition, the result obtained can also be used to calculate the net profit, which is also known as bottom line. Therefore, like the use of valuation multiples on comps analysis, the gross profit must be converted into a percentage, i.e. the gross margin, as we illustrated earlier. Generally speaking, a company with a higher

Kanban boards are less effective for managing complex projects that require detailed planning and long-term strategy. Their focus on current tasks and short-term planning can make it difficult to visualize and manage projects with multiple phases and dependencies. For instance, a Kanban board may not adequately capture the project’s full scope and sequence in construction