While it might seem like a daunting task at first, properly prepping your data for transfer will ensure a smooth migration and help you keep the most accurate financial records possible. Ready to dig into your new accounting system? Follow these five steps to make sure your data is transferred correctly and completely.
Fringe benefits are extra benefits that employees receive from their employer in addition to their regular salary or wages. We’ll dive into everything you need to know about what they are, how they factor into your overall cost and the tax implications of these benefits.
Certified payroll is part of the requirements set out in the Davis-Bacon act and is intended to make sure workers are getting paid fair wages. It requires a regular (most often weekly) report to be sent to the owner to prove how the funds were used and that workers were compensated fairly.
Labor represents the largest expense for many construction companies, so it pays to have an efficient payroll system to manage the complexities involved. In this quick guide, we’ll outline the best practices for gathering payroll data, calculating withholdings, paying taxes and filing payroll.
As soon as you know or even think you can’t make payroll, you need to start getting backup options in place. Even better, it’s good to know your options and prepare yourself before you’re down to the wire.
Navigating payment terms in construction is crucial for effective cash flow management. This post unpacks common terms like “Paid when paid”, Net 30, and retainage, highlighting the importance of good relationships in negotiating favorable terms.
The Percentage of Completion (POC) method is an essential accounting technique in construction, determining revenue and costs based on work progression. Various methods, including cost-to-cost and efforts-expended, help calculate POC. Accurate reporting is vital, and specialized tools like CrewCost aid in ensuring precision.
Construction retainage withholds a portion of progress payments to ensure contractual compliance. While it safeguards project owners, it can strain contractor cash flow. The CrewCost platform streamlines retainage management, enhancing project success and profitability.
Accurate accounting of overhead costs is vital for construction profitability. These indirect expenses, separate from specific jobs, include office rent and insurance. CrewCost software helps contractors streamline this allocation, offering precise insights for informed decision-making.
Effective cash flow management is pivotal for construction businesses, often challenged by slow payments and cash-intensive projects. Essential practices include precise tracking of cash movements, strategic forecasting, and leveraging tools for real-time financial insights. Contractors prioritizing these practices can navigate unexpected costs, negotiate better terms, and ensure long-term success.
Retainage is funds withheld from a project to ensure contractors fulfill their contract duties. Typically, it ranges from 5-10% of the project cost. It acts as informal insurance, ensuring quality work. These funds become receivables for contractors and payables for project owners. Proper accounting practices, like adding specific retainage accounts, are crucial for clarity.
Explore the complexities and methodologies behind overhead allocation in construction accounting. Learn how software like CrewCost can automate this crucial aspect of financial management, leading to more accurate job costing and improved decision-making.
Discover the keys to setting up an effective construction accounting system that addresses job costing, labor costs, and more. Learn how purpose-built software like CrewCost can automate complex processes and boost your project’s profitability.
Overhead costs, such as administration and utilities, are ongoing indirect business expenses. They can be fixed, variable, or semi-variable. Precise allocation is vital for accurate estimates and profitability.
Discover strategies to avoid overbilling, maintain transparency, and strengthen business relationships with stakeholders.
Underbilling in construction can lead to financial instability and project delays, causing strain on a contractor’s resources and relationships with clients.
Running a contracting company has a lot of moving parts.