When a contractor invoices ahead of work finished as indicated on the WIP schedule or the over/under billings report, this is known as overbilling. For example, if a contractor bills 60% of a task's estimated revenue but only accounts for half of the estimated expenditures, the job is overbilled. Overbilling is often viewed positively by construction CPAs and sureties. Overbilling allows contractors to stay ahead of their cash flow, but it is essentially borrowing against future work that has yet to be completed.'
A GL insurance premium audit can be complex for construction companies. This guide outlines best practices, from managing vendors and segregating job costs to preparing financial records and understanding insurance policies, ensuring you stay compliant and avoid costly penalties.
Read MoreThe Construction Company Accountant plays a vital role in overseeing the financial health of construction projects, ensuring that costs are accounted for and reported accurately. They are key partners in ensuring that construction projects not only stay on track but also deliver on financial goals.
Read MoreCFMA's 2024 Financial Benchmarker shows the construction industry's strong performance in 2023 despite economic challenges. Companies achieved a 10.4% revenue increase and higher profitability, with net income before taxes at 6.3%. Top firms excelled in cost management and asset use, indicating areas for improvement industry-wide.
Read MoreCost codes are vital for accurate job costing in construction. This guide covers their importance, how to set them up in QuickBooks Online, and best practices for improved budgeting, financial reporting, and cost control, ensuring better project outcomes.
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