A contractor's ability to pay current liabilities without having to convert non-cash assets to cash is measured by the quick ratio. The formula for computation is� (cash + receivables) / current liabilities. As a result, unlike the current ratio, the quick ratio excludes assets such as prepaids, inventories, and underbillings. Without selling goods, a contractor with a lower quick�ratio may not be able to meet their obligations. A high quick ratio indicates ineffective cash management.�
As construction companies grow, managing complex workflows and detailed job costing becomes essential. Intuit Enterprise Suite extends QuickBooks Online, adding advanced features like automation, multi-entity management, and project tracking to streamline operations and support scalable growth.
Read MoreStreamline your construction accounts payable with software tailored for job-specific workflows, cost codes, and vendor management. Learn about key features, integration tips, top providers, and how AP automation can enhance efficiency, reduce errors, and boost project profitability.
Read MoreA 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.
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