When a contractor bills for less money than they have earned for work completed, as determined by the WIP schedule or the over/under billings report, underbillings occur. For example, the project is underbilled if a contractor has only billed 25% of the job's projected revenue but has already experienced half of the estimated costs. Construction CPAs and sureties often regard underbillings to be unacceptable. Significant or ongoing underbilling can result in negative cash flow and signal a variety of additional problems. Poor accounts receivable administration, imprecise estimating, or a significant number of unapproved modification orders are examples.
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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