Proper construction bookkeeping lets you better understand and control your financial position and cash flow. Many industries operate using billing processes like fixed-price and point-of-sale billing. However, since construction companies use a number of billing methods, specialized software might be required to track those billings. Construction contracts can often take years, which is longer than […]
We will explain the concept of undeposited funds and why it is important to clear them. We’ll also provide you with a step-by-step process to help you confidently clear undeposited funds in your QuickBooks Online account. As you can see above, my reconcile screen shows one deposit for those three payments and makes it easy […]
For the past 52 years, Harold Averkamp (CPA, MBA) has worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. If the GP has control but not absolute power then we would apply a discount for lack of control between 5% and 10%. First, when computing the non-controlling interest, we […]
Between mutually exclusive projects having similar return, the decision should be to invest in the project having the shortest payback period. Management uses the payback period calculation to decide what investments or projects to pursue. In essence, the payback period is used very similarly to a Breakeven Analysis, but instead of the number of units […]
It is crucial to carefully review and select the transactions to be removed before confirming the changes. Once the adjustments are made, the platform recalculates the account’s reconciliation status to reflect the accurate financial position. Undoing a reconciliation in QuickBooks Desktop involves a distinct set of actions and interface navigation to ensure the accurate adjustment […]
The current ratio is a broader measure considering all current assets, while the quick ratio is a more conservative measure focusing only on the most liquid current assets. Analyzing the quality of a company’s current assets can provide insights into its liquidity. For example, a company with a high proportion of current liquid assets, such […]
By calculating direct labor costs, companies can evaluate the efficiency of their workforce and identify areas for improvement in productivity. Many factors make it challenging for companies to accurately track and report their financial activity. Income recognition is an important part of the construction project cycle and construction bookkeeping a feature of accrual accounting. Also […]
First, take into account their expertise and familiarity with the construction industry, as this can make a significant difference in the quality of service they provide. Next, assess their reputation by looking into client testimonials, reviews, or case studies, which can give you insight into their credibility and reliability. This comprehensive guide is designed to […]
