When a contractor invoices ahead of work finished as indicated on the WIP schedule or the over/under billings report, this is known as overbilling. For example, if a contractor bills 60% of a task's estimated revenue but only accounts for half of the estimated expenditures, the job is overbilled. Overbilling is often viewed positively by construction CPAs and sureties. Overbilling allows contractors to stay ahead of their cash flow, but it is essentially borrowing against future work that has yet to be completed.'
Before ditching QuickBooks Online, construction firms must carefully evaluate their growth-driven needs. Supplementing QBO with specialized apps like Knowify and Hammr can bridge functional gaps effectively, often providing better value than switching entirely to a complex ERP system.
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Read MoreConstruction M&A is surging as PE capital and infrastructure funds chase niche contractors, while aging owners face succession gaps. This article compares ESOP exits versus PE/strategic sales, details buyer criteria and risks, and gives a readiness checklist powered by RedHammer expertise.
Read MoreExplore how AI is revolutionizing construction—from smarter bidding and automated takeoffs to real-time safety monitoring and predictive scheduling. This guide breaks down key AI concepts and showcases tools that enhance efficiency, safety, and profitability.
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