Percentage-of-completion (PCM) is a technique of revenue recognition which occurs when a contractor records money based on how much of the project they've completed. Because PCM is an accrual approach, earnings are recognized when the contractor invoices, not when they are paid. Contractors can seek advice from construction CPAs on a variety of PCM approaches for determining how much of a project "count" as completed. Cost-to-cost approaches, physical completion methods, and labor methods are among them. For tax purposes, the IRS mandates contractors with revenue exceeding a specific yearly average or contracts of a certain length to employ this method.
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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