4Thought Blog

4thought graphic - blog 2020

Cash Flow Management for Construction: 9 Strategies to Consider

Posted by Concannon Miller on Tue, Oct 11, 2022

Construction business owners know that cash is king. However, managing cash flow in an industry known for its ebbs and flows isn't easy.

And when you throw in the steady rise of inflation and ongoing supply chain issues, cash-flow management has become more important than ever.

Here are nine tips to consider:

Read More

Topics: Construction & Real Estate Development

Own a Construction Business? Tips to Diversify Wealth

Posted by Concannon Miller on Thu, Sep 8, 2022

Many contractors prioritize business financial management over personal wealth management. It's an easy trap to fall into given how competitive the construction industry can be.

Let's discuss some ways to manage your wealth while you run your business.

Read More

Topics: Construction & Real Estate Development

Common Billing Methods in Construction: What’s Best for Your Company

Posted by Concannon Miller on Tue, Aug 23, 2022

Your neighborhood ice cream shoppe no doubt operates under a simple fixed price, point-of-sale billing method. Construction companies don't have it so easy.

Because of the project-based, decentralized nature of construction work, contractors need to use various billing methods. Let's review the five most common in case you might be overlooking an approach that could better suit your business needs.

Read More

Topics: Construction & Real Estate Development

Revenue Recognition in Construction: How to Choose the Right Method

Posted by Concannon Miller on Thu, Jul 21, 2022

While many businesses handle sales in a single transaction, construction contracts often cover months or even years and include multiple payments.

As you're well aware, the longer-term nature of construction projects can prevent contractors from billing and collecting on a timely basis, which can lead to accounting, tax and cash flow complications.

From an accounting perspective, the term "revenue recognition" refers to precisely how you determine when you've received payment and when you can record the revenue. Let's review the three most commonly used types of revenue recognition in the construction industry.

Read More

Topics: Construction & Real Estate Development

Could the Work Opportunity Tax Credit Help Your Construction Company?

Posted by Concannon Miller on Thu, Jun 30, 2022

The construction industry has been facing a labor shortage for years. Although there are various ways to tackle the challenge, one approach to keep in mind is expanding your hiring pool to, in part, avail yourself of a potentially valuable tax break: the Work Opportunity Tax Credit (WOTC).

The WOTC is available to employers as an incentive for hiring individuals who receive government assistance and reintroducing them into the workforce.

Depending on the targeted group to which a worker belongs, as well as the wages earned, the maximum credit can range from $2,400 to $9,600 per new hire. So, it's well worth determining whether the tax credit could help your construction company.

Read More

Topics: Construction & Real Estate Development

The Real Estate Investor’s Dilemma: Industrial or Multifamily?

Posted by Concannon Miller on Thu, Jun 16, 2022

The global events of the past two years have had a profound impact on real estate, from the disruption to office real estate to the rise of secondary markets. In terms of sectors that have seen positive growth, industrial and multifamily have emerged as clear frontrunners.

Multifamily owners and investors have benefited from the shift to remote and hybrid work environments as employees sought homes with more space and amenities, and industrial owners and investors benefited from an increase in e-commerce demand.

Now these sectors are in a proverbial horse race as they compete for labor, materials and investment. Investors wondering which will come out ahead should be aware of current trends in both sectors.

Read More

Topics: Construction & Real Estate Development

Ensure Your Construction Accounting System is Up-to-Speed

Posted by Concannon Miller on Tue, May 10, 2022

Construction accounting is distinctively complex. Unlike other businesses that rely heavily on a general ledger to track finances, construction companies need to master a project-based approach to accounting.

After all, each of your jobs serves as an individual profit center — with its own scope, timeline, payroll, revenue and expenses.

That's why your accounting software shouldn't function like any other company's off-the-shelf solution. Here are some key features to ensure that your system gives you the right functionality.

Read More

Topics: Construction & Real Estate Development

Should Your Construction Firm Expand Your Facility or into New Markets?

Posted by Concannon Miller on Thu, Apr 14, 2022

When business starts to increase, it's time to dig in your heels a little deeper to turn your construction firm's revenue growth into an upward trend — rather than just a good month. Buying or renting a larger facility can help.

There are certain key factors to consider when making a decision to expand or consolidate your physical plant operations base. Here are some questions to consider before you start allocating dollars to the plan:

Read More

Topics: Construction & Real Estate Development

3 Numbers To Know in Construction: Costs, Markup and Profit

Posted by Concannon Miller on Tue, Mar 15, 2022

Running a successful construction company calls for more than just winning bids and doing great work.

To get ahead and make money, you need to carefully track your costs and accurately calculate how much to charge to turn a profit. To this end, there are three numbers that every construction business owner should know, review and update.

Read More

Topics: Construction & Real Estate Development

Construction: Tips to Fix Time Tracking to Avoid Fines

Posted by Concannon Miller on Thu, Feb 10, 2022

For construction businesses, time tracking is about more than capturing labor hours to issue paychecks. It's a complex, critical administrative task directly tied to your company's financial stability.

Improper time tracking can lead not only to payroll mistakes, but also, when working on public projects, to compliance failures with prevailing wage and tax laws. The latter can lead to adverse legal actions and penalties.

By standardizing processes, training employees and using automated tools, contractors can tackle time-tracking troubles and score a big win in this challenging area.

Read More

Topics: Construction & Real Estate Development

Subscribe for more Timely Tips for Businesses

Recent Posts