If you’re a contractor or construction business looking for accounting software that can easily help you manage your financials, then you don’t have to look any further. We’ve rounded up five of the best accounting software packages that are specifically designed to help contractors and construction businesses take control of their bookkeeping processes. With intuitive […]
Not only will the construction work suffer from delays and poor planning, but serious issues can arise, such as insufficient tax preparation, which could derail the entire business. Virtual Construction Assistants have a lot of experience working with a wide range of contractors in the construction industry. After assessing your company’s financial situation and barriers, […]
In accounting for construction companies, retainage typically ranges from 5% to 10% of each progress payment, serving as a form of security for the project owner. More importantly, your choice of revenue recognition method can significantly impact your company’s financial statements, tax liability, and business opportunities. Unlike manufacturing or retail businesses where costs tend to […]
The payback period refers to how long it takes to reach that breakeven. The answer is found by dividing $200,000 by $100,000, which is two years. The second project will take less time to pay back, and the company’s earnings potential is greater. Uses of Payback Period in Corporate Finance According to payback method, the […]
Unlike other methods of capital budgeting, the payback period ignores the time value of money (TVM). This is the idea that money is worth more today than the same amount in the future because of the earning potential of the present money. Although calculating the payback period is useful in financial and capital budgeting, this […]
The time value of money is the idea that cash will be worth more in the future than it is worth today, due to the amount of interest that it can generate. This is another reason that a shorter payback period makes for a more attractive investment. The payback period is calculated by dividing the […]
