Invoicing is just one of those humdrum aspects of business that every contractor has to deal with. Because of this, it’s easy to think, well, what could go wrong? In our experience though, some business owners forget to give invoicing the same level of scrutiny they would to their quality of work – and end up dealing with the consequences later.
Revolutionize your construction accounting with accounting software made for you. Simplify document management, streamline expenses, and optimize change orders. Take charge of your projects’ financial health today.
Navigate the complexities of what costs can be capitalized during construction and how it impacts your financial statements. Gain insights into this vital aspect of construction accounting.
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.
Job costing is what allows construction contractors to increase their overall profit margin and to maintain better cashflow. In a nutshell, job costing is the process of setting a budget for a job, tracking expenses against that job’s budget and then using the information gained once the job is complete to improve future bids.
Job costing is the process of tracking and measuring your estimated project expenses against actual costs. When done well, it can help you manage your spending, keep each job on budget, and ensure you and your team take home the highest profit possible at the end of the day.
Discover how a construction loan draw schedule works and the right approach to project financing.
Learn the advantages of a schedule of works for a construction job.
Learn the importance of contractor payment schedules in construction projects.
Navigate construction contracts effectively as a subcontractor.
Effective cash flow management is crucial for construction contractors, as the cash-intensive nature of the industry, coupled with slow payments and long billing cycles, can pose challenges to financial health and business longevity.
Every business, especially in the construction industry, needs a budget.
It’s not uncommon for contractors to spend thousands of dollars on a project before they ever receive a payment from their client.
Things like materials prices, weather conditions and indecisive clients can all create major changes to a job at any phase.
Deductive change orders are required when part of a project needs to be removed from the overall job.
Project estimates are the key to maximizing profits.
If you’re not paying attention to what’s happening in the materials market, you could put your construction business into a risky situation.
Creating cost estimates can be tough.
Correctly estimating the total costs of your project is crucial to profitability.
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.
