Using the formula sales / working capital, the working capital turnover ratio shows how a contractor utilizes its capital to make sales. A high ratio could imply a lack of capital to sustain sales growth, whilst a low ratio could indicate that working capital is being used inefficiently. Contractors with a lower fast ratio may find it difficult to meet their obligations without selling goods.
President Trump’s second term will shape the construction industry with policies focused on infrastructure spending, tax reform, and streamlined permitting. Challenges like labor shortages and material costs remain, but initiatives like the Department of Government Efficiency (DOGE) aim to reduce bureaucracy and drive transformative projects.
Read MoreTo Overbill or Not to Overbill, That Is the Question" explores overbilling in construction as a financial strategy to boost cash flow, weighing its benefits against ethical risks. It emphasizes aligning billing with project progress and stresses ethical practices and transparency to maintain client trust.
Read MoreIn construction, effective Work-In-Progress (WIP) management is crucial for financial health. This blog provides a guide to avoiding common WIP pitfalls and enhancing project profitability through accurate forecasting, documentation, and alignment between accounting and project management.
Read MoreAs 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.
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