Construction
Reading Job Cost Variances Before They Become Losses
A variance report tells you a cost code went over. It does not tell you why, or whether it matters. Here is how to read one properly.
Read ArticleAccounting tips, CFO insights, and construction finance guides — written for US business owners.
A variance report tells you a cost code went over. It does not tell you why, or whether it matters. Here is how to read one properly.
Read ArticleEvery WIP schedule rests on a cost-to-complete number. Most are produced by taking budget minus actual, which is not an estimate at all.
Read ArticleCosts incurred tell you where a job has been. Committed costs tell you where it is going — and most job cost reports leave them out entirely.
Read ArticleThese two structures answer different questions, and collapsing them into one is the most common setup mistake in contractor accounting.
Read ArticleJob cost reports are only as good as what the crew writes on a time sheet. Here is how to get coding right at the source rather than fixing it in the office.
Read ArticleFourteen jobs, one schedule, and the five things it tells you that a profit and loss statement never will. Walked through line by line with the template you can download and use.
Read ArticleRented equipment costs are obvious. Owned equipment costs disappear into overhead, which quietly distorts every job margin you report.
Read ArticlePaying a subcontractor without the right paperwork transfers their risk to you. Collecting it takes minutes at onboarding and is nearly impossible afterwards.
Read ArticleBonding capacity is decided largely by numbers you control. Understanding what an underwriter looks for is the difference between a limit that grows and one that stalls.
Read ArticleThe default QuickBooks chart of accounts was not designed for construction. Rebuilding it is the cheapest improvement most contractors can make to their reporting.
Read ArticleIf you are estimating labour at wage plus a round percentage, you are guessing. Here is how to calculate what an hour of your crew actually costs.
Read ArticleUnapproved change orders are the most common reason a job that looked profitable closes at break-even. The accounting treatment matters as much as the negotiation.
Read ArticleSigning the wrong lien waiver can waive rights to money you have not been paid. The four types differ in ways that matter, and the differences are easy to miss.
Read ArticlePublic works jobs come with payroll reporting that will stop your payments if it is wrong. The requirements are strict, but they are not complicated once set up properly.
Read ArticleThe revenue recognition method you use changes what your financials say about you — to your surety, your lender, and the IRS. They may not all get the same answer.
Read ArticleRetainage is usually the single largest chunk of a contractor’s working capital, and most books track it badly. Here is how it should be recorded on both sides.
Read ArticleHow much does a fractional CFO actually cost? We break down pricing models, what affects the rate, and how to evaluate if it's worth it for your business.
Read ArticleEverything US small business owners need to know about outsourcing their accounting — what's included, how much it costs, and how to choose the right provider.
Read ArticleA fractional CFO gives a contractor senior financial leadership without the full-time salary. Here is what the role actually covers on a construction business, and when you are ready for one.
Read ArticleGeneral accountants often get construction wrong. Here's what specialized construction accounting actually covers — and why it matters for your profitability.
Read ArticleIf you don't know which jobs made money until months after they're done, your job costing is broken. Here's how to fix it.
Read ArticleYour WIP schedule is the most important financial report in construction. Here's what it is, why it matters, and how to get it right.
Read ArticleRunning out of cash is the #1 reason businesses fail — even profitable ones. Here's how to build a cash flow forecast that keeps you safe.
Read ArticleAIA billing is the standard payment format for commercial construction. Here's exactly how G702 and G703 forms work.
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