When a contractor bills for less money than they have earned for work completed, as determined by the WIP schedule or the over/under billings report, underbillings occur. For example, the project is underbilled if a contractor has only billed 25% of the job's projected revenue but has already experienced half of the estimated costs. Construction CPAs and sureties often regard underbillings to be unacceptable. Significant or ongoing underbilling can result in negative cash flow and signal a variety of additional problems. Poor accounts receivable administration, imprecise estimating, or a significant number of unapproved modification orders are examples.
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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