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Types of Capital for Construction Businesses

Levelset

Several different types of capital — working capital , debt capital , and equity capital — are common in the construction industry. That’s because other forms of capital — like labor or equipment — can’t generate value if you don’t have enough cash to take on new jobs, acquire materials, or cover overhead.

Debt 97
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Contractor Bookkeeping Vs. Regular Bookkeeping

Contractor Bookkeeping

Business Owners - Need three basic reports, Cash, Profit and Equity. Assets - Liabilities) = Equity. Expenses - Overhead required to maintain business operations. Expenses - Overhead is extremely complex because some expenses in regular bookkeeping are actually Cost of Goods Sold in construction accounting.

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Contractor Accounting Vs. Regular Accounting

Contractor Bookkeeping

Business Owners - Need three basic reports, Cash, Profit and Equity. Assets - Liabilities) = Equity. Expenses - Overhead required to maintain business operations. Expenses - Overhead is extremely complex because some expenses in regular Accounting are actually Cost of Goods Sold in construction accounting.

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Construction Bookkeeping Unique Features

Contractor Bookkeeping

Business Owners - Need three basic reports, Cash, Profit and Equity. Assets - Liabilities) = Equity. -. Expenses - Overhead required to maintain business operations. Expenses - Overhead is extremely complex because some expenses in regular Accounting are actually Cost of Goods Sold in construction accounting.

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Service Agreements Can Improve Contractors Cash Flow And Profits

Contractor Bookkeeping

The Balance Sheet is the summary report which shows all of the assets minus the liabilities which equals the "Book Value" or owner''s equity. Owner’s equity is in theory what would be left over if you liquidated the company, sold the assets and paid all of the debts or liabilities.

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QuickBooks Online Converted To QuickBooks Contractors Desktop Online

Contractor Bookkeeping

Business Owners - Need three basic reports, Cash, Profit and Equity. Assets - Liabilities) = Equity. -. Expenses - Overhead required to maintain business operations. Expenses - Overhead is extremely complex because some expenses in regular Accounting are actually Cost of Goods Sold in construction accounting.

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Bookkeeper Vs. Accountant Vs. C.P.A. For Your Construction Company

Contractor Bookkeeping

Business Owners - Need three basic reports, Cash, Profit and Equity. Assets - Liabilities) = Equity. -. Expenses - Overhead required to maintain business operations. Expenses - Overhead is extremely complex because some expenses in regular Accounting are actually Cost of Goods Sold in construction accounting.