Knowing whether your construction business is actually making money involves more than checking sales or looking at the bank balance. Profitability becomes clearer when you understand how revenue, direct job costs, gross profit, gross margin, operating expenses, and...
A Profit & Loss statement can tell you much more than whether revenue went up or whether there is money left at the bottom of the page. Read correctly, it helps you understand how your construction business produced its financial result. You can see how much...
A busy schedule, strong sales, and money in the bank can all feel like signs that your construction business is doing well. But none of those things, by themselves, tell you whether the business is actually profitable. Use this checklist to review the financial...
Your accounting system can give you hundreds of numbers. That does not mean you should monitor hundreds of numbers every month. Revenue, profit, cash, receivables, job costs, estimated costs, actual costs, Work in Progress, liabilities, margins, and dozens of other...
Your accounting system can probably produce more financial reports than you will ever want to read. Profit & Loss Statements. Balance Sheets. Cash Flow Statements. Job reports. Work in Progress reports. Accounts Receivable Aging. Accounts Payable Aging. And plenty...
Your construction business can be busy without being financially healthy. Revenue may be growing. Jobs may be booked months ahead. Customers may be sending payments. There may even be a comfortable amount of money in the bank. Those are useful pieces of information....
