Tag: Accounts Receivable
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Collection Tips for Construction Industry Managers and Business Owners
Many, if not most, of the construction payment issues and delays that arise can be directly attributed to the circumstances created by the project payment chain. Read on to learn a little bit about why customers don’t pay and to learn some collections tips specific to the construction industry.
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The Construction Office Manager’s End of the Year Checklist
With the end of the year fast approaching, there’s no better time to review and reflect on how your business did over the last 12 months, and to make preparations for the coming year. Since the holidays are about to begin, it’s time to start making your reports, checking your books twice, and finding out…
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Preliminary Notices: 3 Myths About Filing Preliminary Notices
There are several reasons why it’s a good idea. Perhaps the most compelling reason is that zlien’s data shows that sending preliminary notices helps construction companies get paid faster. zlien customers have been able to shave up to 38 days off of their DSO, just by implementing a preliminary notice process. One explanation for this…
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Construction Accounting: What Is a Work in Progress Schedule?
The Work In Progress (WIP) schedule is an accounting schedule that’s a component of a company’s balance sheet. It’s calculated for each accounting period, and required (according to GaaP principles) on projects where the Percentage of Completion (POC) accounting method is used (link to POC article is below). Though the format of the WIP will…
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What Is Underbilling? | Construction Accounting
Underbilling occurs when a contractor does not bill for all the labor and materials delivered in a billing cycle. It can lead to serious cash flow problems.