Author name: constructBalances

COGS for a construction company includes all the direct and indirect costs associated with completing a construction project. These costs are used to determine the actual expenses incurred to produce the completed project, including direct labor, materials, and other related costs. Calculating COGS for a construction company is more complex than for other industries. It

As an independent contractor, tax savings should be at the forefront of your financial planning. Unlike employees, contractors are responsible for paying self-employment tax on top of income tax, which can add up quickly if not properly budgeted for. So, how much money should you set aside for taxes as an independent contractor? There is

As a contractor in the United States, managing your expenses can be a complex process. One essential aspect of financial management is the categorization of expenses, which allows you to track and analyze spending, as well as accurately report expenses for taxation purposes. The process of categorizing contractor expenses can be challenging, but with the

Construction projects are complex and require significant investment. From design and architectural expenses to labor and equipment costs, the financial aspects of construction are numerous. However, identifying the major expense in the construction industry is critical to understanding the financial complexities involved in construction projects. In the United States, construction expenses have been rising steadily

Construction projects are often complex and involve multiple stakeholders, tight deadlines, and numerous challenges. One of the most significant problems that construction managers face is cost overruns. Cost overruns occur when the actual expenses exceed the originally estimated costs, resulting in budgetary shortfalls, delays, and other negative consequences. In this article, we’ll explore the most

As an independent contractor, it’s important to keep accurate records of your financial transactions and project-related activities. Maintaining detailed records is crucial for successful project management and tax compliance. In this section, we will discuss the essential items that independent contractors should track for seamless record keeping and efficient project management. Key Takeaways: Understanding the

In the construction industry, the net profit is one of the critical metrics for evaluating a company’s financial health. Net profit is the amount of money a company makes after deducting all its expenses. It indicates the company’s ability to generate revenue and control costs, making it an essential metric for determining a company’s profitability.

Construction projects involve various costs, and project managers must understand which costs can be capitalized. Capitalizing costs involves treating expenses as assets rather than expenses, thereby impacting a project’s financial statements and affecting cash flow. It is essential to adhere to the accounting standards in the United States to accurately reflect a project’s financial position