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When a loss occurs, it can put a real crunch on a contractor’s cashflow. It also helps contractors manage cashflow during a loss. How project loss insurance works. A contractor applies for a PLI policy and provides financial statements and work in progress reports. Project loss insurance coverage.
To make matters worse there are a never ending parade of consults and hucksters ready to solve all your problems and make everything right as if by magic; and you know that''s not going to happen! Construction Company Failure Root Causes: Working for customers instead of clients and not charging enough (The 80-20 Rule).
What we can share is something that has been going on for hundreds if not thousands of years and is so simple that it hurts me to know that most contractors who need more cashflow and profit will do it and contractors who don''t need more cash and profits do it regularly. Work-In-Progress (W.I.P.). Job Scheduling.
How can we be of help with accounting, bookkeeping or consulting? Step 2: One hour FREE Consultation. Is your #1 Favorite Customer adding or taking away profits and cashflow? Consulting is adding the processes, strategic analysis and ongoing client support to grow your construction company. Your Answer: 3.
You Need To Track Job Deposits - Customer down payments can be input many different ways and there is one method that works best and helps you manage cashflow and it can save you money on taxes. Work In Progress (WIP) Reporting. Job Deposit Tracking. Quarterly Tax Returns. Sales Tax Returns. Payroll Processing.
Spec Home Builders - Who also do some remodel work, buy houses for rental inventory and buy houses to fix up and sell, house flippers, create special problems for regular bookkeepers. Work In Progress (WIP) Reporting. We know what to do! Job Deposit Tracking. Quarterly Tax Returns. Sales Tax Returns. Payroll Processing.
Working for customers instead of clients and not charging enough (The 80-20 Rule). Not using Additional Work Orders or Change Orders (Click For FREE Change Order Template). Cashflow issues kill contractors even though they have profit. Poor scheduling affects production and cashflow.
Also, a professional producer will be able to introduce you to other professionals and consultants, such as accountants and attorneys who can help grow your business. After you have obtained your bond, the surety will likely ask you to prepare quarterly schedules of work in progress.
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