Billings in excess of costs is a financial accounting of project billings that are greater than the actual revenue earned from work performed on the job. This is a technique done by many contractors to cover costs during the course of a project. It also refers to the practice of sending an invoice to a client prior to the completion of a project. To help offset an inflated picture of revenue from overbilling, billings in excess of costs are recorded on a company balance sheet as a liability until the work for those billings is complete.
The construction industry faces economic challenges, including inflation, interest rates, and supply chain issues, requiring firms to adopt strategic financial planning. By managing cash flow, securing financing, and monitoring economic indicators, construction businesses can adapt to volatility and position for future growth.
Read MoreA well-structured Chart of Accounts is crucial for construction companies. This guide covers best practices, including categorization of costs, job costing integration, retainage, and WIP accounts. Streamline financial reporting, enhance project management, and maintain compliance with industry standards.
Read MoreThis is RedHammer's comprehensive guide to successful construction software implementation. It covers best practices, common pitfalls, and software recommendations tailored to companies of all sizes. With expert insights, this guide helps construction businesses optimize processes, ensure smooth transitions, and achieve long-term success.
Read MoreAvoid the 10 most common software implementation mistakes, from underestimating complexity to insufficient planning and poor change management. This guide provides practical solutions to ensure your project is completed on time, within budget, and fully utilized.
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