Staying compliant with these regulations is essential to avoid fines, legal issues, and reputational damage. It also ensures that financial statements accurately reflect the company’s financial position. Retainage billing is a practice where a portion of each progress payment is withheld until the project is substantially complete. In construction, several billing methods are commonly used, […]
This means that you recognize income in the accounting period when it’s collected, and not The Significance of Construction Bookkeeping for Streamlining Projects at the time of sale. The high price and length of construction projects make payment scheduling and collection unique. Indirect costs are those which are essential to running your business across projects. […]
Effective cash flow management is essential for the financial health and sustainability of a construction business. For instance, the cost of a piece of machinery used across multiple projects should be distributed based on usage. Ignoring or inaccurately allocating indirect costs can skew the profitability metrics of a project. Construction accounting software can help in […]
