This is the second part of a three-part series examining the business side of the construction business. You can see the first part, How to Learn the Business Side of the Construction Business , by using the link.  Know Your Numbers Understanding the business side of the construction business begins with the vital component of knowing your numbers. It is a core skill for construction company owners. It is: The foundation for making informed decisions  The walls for understand

The Piano Example When I was a youngster, I bugged my mom for several weeks to let me take piano lessons. She finally agreed, found a piano teacher, and arranged for my first lesson. Imagine my surprise when I learned that my piano teacher expected me to know such odd things as where the C note was on the keyboard, what each symbol on the row of lines represented, how long my fingers should remain on any individual key, and all sorts of other rigamarole.   And on top of that

The purpose of this article is to discuss construction liens (also known as mechanics' liens) and how construction accounting is a vital component in reducing the risk of not getting paid for labor or materials expended on construction projects. However, before delving into that discussion, we must first address an essential aspect of dealing with the legal side of construction liens. While, when followed correctly, lien laws create a legal claim on the property’s title, ther

Adjusting the Flow For healthy and profitable construction businesses, it comes down to adjusting the flow of cash effectively. That means that construction accounting is the groundwork for establishing stability, security, and confidence for contractors.   The key to adjusting the cash flow in construction is to recognize some fundamental elements that come into play at various stages – they are:   Revenue Recognition Progress Billing Job Cost Tracking Work in Progress (WIP)