Bookkeeping plays a critical role in the success of any construction business. Managing finances effectively ensures profitability, helps track project costs, and keeps operations compliant with tax regulations. However, the complexity of construction accounting often leads to mistakes that can hurt your bottom line. Below, we discuss the most common bookkeeping errors in the construction industry and how to avoid them. 1. Failing to Track Job Costs Properly Problem: Many… Read More
Archives for January 2025
Unique Challenges Of Cashflow In Construction Industry
Cash flow management is one of the most significant challenges faced by construction businesses. The industry operates within a complex ecosystem where payments, costs, and timelines are often misaligned, resulting in frequent cash flow difficulties. Below is an expanded and detailed exploration of the various complications construction businesses face, along with their underlying causes, consequences, and strategies for mitigation. 1. Delayed Payments Delayed payments are a pervasive issue in the… Read More
The Cost of Neglect: Why Contractors Can’t Afford to Ignore Accounting and Job Costing
In the construction industry, success hinges on more than just completing projects on time and within scope. Behind every successful project is a foundation of solid financial management. Yet, many contractors overlook the importance of accounting and job costing, which can have serious consequences for their businesses. If you’ve been focusing solely on building projects and neglecting your numbers, here’s why it’s time to rethink your approach. The Risks of… Read More
How New Accounting Standards Impact Surety Bonding
The construction industry operates within a complex financial framework, and recent accounting changes like ASC 606 (Revenue from Contracts with Customers) have introduced significant implications for contractors, particularly in the realm of surety bonding. Surety providers rely heavily on accurate financial reporting to assess a contractor’s financial health and bonding capacity. This blog explores how new accounting standards impact contractors and their ability to secure surety bonds. Overview of ASC… Read More
The Cost of Surety Bonds: What Contractors Should Know
Surety bonds are an essential part of the construction industry, but understanding their cost can be confusing for contractors. This comprehensive guide breaks down the key factors, cost structure, and actionable tips to help contractors navigate bond expenses effectively. 1. How Surety Bond Costs Are Calculated Surety bond costs are typically calculated as a percentage of the bond amount, commonly referred to as the “bond premium.” This percentage can range… Read More
5 Benefits of Partnering With a Surety Bond Specialist
Discover how surety bond specialists help contractors secure better terms, increase capacity, and streamline the bonding process. Learn more today. Navigating the construction industry comes with its challenges—tight deadlines, escalating costs, and complex project requirements. For commercial contractors, one critical aspect often overlooked is the need for surety bonding. While many view bonding as just another obligation, it’s actually a valuable tool that protects your business and enhances your reputation… Read More