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Restoration: How to Manage Cash Flow While Waiting for an Insurance Check

Levelset

A cash flow statement is an analysis of incoming and outgoing cash for a certain time period (usually one month). Each project you work on has expenses that need to be paid and income that will be received. Protect your lien rights. The right to file a mechanics lien is the most powerful tool in your toolbelt.

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3 Ways to Reduce Payment Risk With The New Tariffs And Rising Construction Costs

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Protect your Lien Rights Protecting your lien rights is one of the most critical steps in protecting your right to payment for what has been delivered to a job site. You may be limited in your ability to recapture that lost income. Other contractors may not be keeping pace with pricing changes.

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The 40 Best Construction Podcasts

Lets Build

The Lien Zone. A team of construction lawyers provides knowledge about different legal issues in the construction industry such as construction and engineering contracts, mechanics’ liens, insurance. This podcast gives a lot of useful information how to gain new management and business skills for a better income and work structure.

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Accounting for Retention Receivable & Payable: A Contractor’s Guide

Levelset

The invoice is recorded in the chart of accounts with a credit to the income account for $100,000, a debit of $90,000 to accounts receivable, and a debit of $10,000 to retention receivable. Debit Credit Income $100,000 Accounts receivable $90,000 Retention receivable $10,000.

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How To Negotiate A Higher Credit Limit With Your Building Material Supplier

Levelset

A standard financial statement package includes four reports: Balance sheet Income statement Cash flow statement Work in progress (WIP) report. Showing them proof of expected income will go a long way to calming their fears. Provide a plan. Often you can request an increase in credit by showing the supplier how you plan to repay it.

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How to Avoid Running Out of Cash on a Construction Project

Levelset

Without incoming revenue to cover those costs, you’ll have to overbill another project to cover them. You can save your existing cash reserves to cover payroll and overhead costs, and the extended repayment terms ensures that you’ll have project income in the bank when the bill comes due. Underbidding. Learn More.

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Recording & Tracking Retainage Receivable: QuickBooks for Contractors

Levelset

As a result, the deadline to file a mechanics lien for retainage also differs from regular payments, as does the deadline under Prompt Payment rules. Choose the Retainage Receivable account under Income Account Click Save. When you submit an invoice or pay application, you subtract retainage from the total currently due.