Lease accounting for contractors

The wait is over. While there was a sliver of hope that private companies would not have to implement the new leasing standard, the day of reckoning has arrived.  On January 1, 2022, Accounting Standards Codification (ASC) 842, Leases became effective for privately held companies with December 31 year ends. This could have a significant …

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Better fade and gain tools to monitor construction contracts

One of the important trends for contractors of all type is to monitor construction contracts fade or gain. This is an analysis, by contract, of evaluating your original estimated gross profit against your current or final estimated gross profit. Jobs that improve their margins from the original estimate are considered contract gains, and conversely jobs …

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Key financial indicators for construction – Receivables to payables ratio

The receivables to payables ratio is simple and can be an effective tool to identify problems with billings and collectability issues. The ratio is calculated by dividing the receivables balance by the payables balance. Don’t miss: Working capital is a key financial indicator for construction companies The ratio is unique to each company and is …

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Working capital is a key financial indicator for construction companies

Does your construction company have enough resources to perform the work in current backlog? Working capital is a key financial indicator that can help answer this question. Don’t miss: Key financial indicators for construction The basic equation for working capital is: Current Assets – Current Liabilities = Working Capital. Creditors and bonding companies will typically …

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Vaccine for economy – infrastructure investment?

As we wait our turn in line for the COVID-19 vaccine, our economy stands right beside us. With the risk of sounding bias towards the construction industry, I believe that giving our nation a “remodel” will help our economy bounce back from the pandemic. Don’t miss: Managing construction company overhead While certain sectors of our …

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