Category: Bookkeeping

At its simplest, the debt-to-equity ratio is a quick way to assess a company’s total liabilities vs. total shareholder equity, to gauge the company’s reliance on debt. The debt-to-equity ratio is calculated by dividing total liabilities by shareholders’ equity or capital. It is essential to recognize that the debt-to-equity ratio should not be evaluated in…

Higher D/E ratios can also tend to predominate in other capital-intensive sectors heavily reliant on debt financing, such as airlines and industrials. Short-term debt also increases a company’s leverage, of course, but because these liabilities must be paid in a year or less, they aren’t as risky. Your company’s equity is the total value of…

For example, knowing the number of partially completed units can help managers decide which products to prioritize for completion and which ones to delay or discontinue. Therefore, to convert the work-in-process inventory into equivalent units, it is important to keep the percentage of completion in the calculation. Thirdly, the equivalent units of production for the…

This KPI analyzes and compares similar equipment, production lines and manufacturing plants. It’s calculated by dividing the total number of good units produced by the specific time frame. A manufacturing KPI is a metric to understand the efficiency of the production process. Ask a Financial Professional Any Question This data encompasses a wide array of…

In conclusion, construction companies need to use specialized bookkeeping practices to effectively manage their finances. It helps track expenses, manage cash flow, and make informed financial decisions. However, bookkeeping for construction companies can be complex and challenging. It requires an understanding of unique accounting principles and regulations specific to the industry. Reconciling Bank Accounts They…

After the project is completed, construction companies perform a post-job review to analyze and assess the job’s overall profitability. Procore is solely dedicated to the construction industry, unlike the other software options on the list. It’s important to note that, while Procore does offer financial management tools and reporting, it’s more of a project management…

When considering scalability, contractors should look for accounting software that can grow with their business. This includes handling increasing construction projects, users, and financial transactions. The software should offer The Importance of Construction Bookkeeping For Streamlining Business Operations customizable features and integrations that can be adapted as your business needs evolve. Plus, cloud-based solutions often…