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.
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.
The best way to manage multiple RFIs is by developing and actively maintaining a good RFI tracking log. An RFI tracking log is a list of all of the RFIs that have been generated on a project.
The reality is, change is inevitable. The reactivity of responding to those changes quickly and efficiently is what allows projects to keep moving forward on time and on budget, and reduces the risk of tarnishing the ability to achieve company growth.
A cost-plus contract reimburses you directly for all costs associated with the assigned project – plus a fee which takes into account your overhead and profit. Let’s dive into how they work and the pros and cons to contractors.
In a Time and Material (T&M) contract the project owner will pay you for all your time (labor) and materials, plus a markup, for the project. Your fee structure is tied to the amount of time and materials spent on the project, versus a fixed fee which can be found in a lump sum project. Best for projects in which the scope of work or project duration are unknown, these contracts provide flexibility and protection to your bottom line.
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.
It’s easy to see the stakes for both owners and contractors. For owners, it’s the budget and schedule that are always at risk. For GCs and speciality contractors, good risk management is simply a matter of survival. Effective financial risk management is a necessity, especially when you consider the state of construction today.
From small home renovations to 20-story skyscrapers, every successful project is the culmination of dozens of different puzzle pieces. Procurement is how you bring these pieces together. Also known as the buying process, construction procurement is the process of contracting for any labor, materials, or equipment needed to effectively complete a job.
A well-scripted RFI can have a massive impact on the success of a construction project, both from a cost and schedule standpoint.
Value engineering is the practice of increasing the value realized from a construction project. That could mean finding an alternative permanent material or product that has higher quality and will make the end result last longer, providing a substitute material or design idea that meets the same quality standards for a lower cost, or developing alternative means and methods for constructing the design that reduces the overall construction costs.
