Income Lien Profitability 
Levelset
MARCH 12, 2025
Contractors operate with low profit margins as it is, so absorbing the increased cost of materials and labor is usually not an option. 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.
Contractor Bookkeeping
OCTOBER 4, 2013
There are a number of people who pass out advice on how to start a profitable construction company; however, very few have actually done it and fewer still had a clear understanding of where they were making or losing money and fewer yet have ever gotten past the point of owning a J.O.B. 3 Your Income Tax Return Preparer.
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Contractor Bookkeeping
FEBRUARY 28, 2014
Cash flow issues kill contractors even though they have profit. Sales tax liens against contractors twenty two times higher than any other business. Ignoring Profit Centers and Key Performance Indicators (KPI). Every contractor’s income is the average of their customers and client’s income.
Levelset
JUNE 6, 2022
It can significantly impact the financial standing of contractors, especially when working on projects with a small profit margin. 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.
Levelset
MAY 2, 2022
If you can show that you’ve been growing and seen an increase in work while remaining profitable, the vendor may feel comfortable increasing your limit. A standard financial statement package includes four reports: Balance sheet Income statement Cash flow statement Work in progress (WIP) report. Provide a plan.
Levelset
APRIL 5, 2022
Most construction businesses focus on their profit margins — making sure that revenue exceeds costs for each job. Without incoming revenue to cover those costs, you’ll have to overbill another project to cover them. Otherwise, you’ll have to use another project’s profits to cover those higher expenses. But what about cash flow?
Levelset
FEBRUARY 14, 2022
These amounts withheld from project payments can be a challenge, since they often account for a contractor’s entire profit margin on a job. 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. Add Retainage to an Invoice.
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