Why Do You Need To Make A Profit?

By Michael Stone

Don’t confuse profit with salary or hourly wages. Making a profit isn’t optional: Your business needs profit to survive.


Taxes and Profit and Markup

By Michael Stone

Michael addresses a few different questions we’ve heard recently, primarily dealing with taxes and profit and calculating your markup.


Know Your Numbers: Current Ratio

By Michael Stone

There is a measure you can use to determine how financially solid your company is at any given point in time. It’s called the current ratio, and it’s a good idea to check it regularly.


Estimating, Labor Burden, and Cost of Goods Sold

By Devon Stone

When you own a small business you wear a lot of hats. Understanding the numbers might not be your favorite hat, but numbers are important because they show where you stand financially.


What Should You Do With Your Profit?

By Michael Stone

The best way to avoid paying taxes is to not make a profit at all, but it’s a rough way to live. 


Profit and Loss and Markup

By Michael Stone

When your books are set up properly, it’s easy to calculate your markup, and it’s also easy to compare your actual results to your estimates.


Calculating for Taxes

By Michael Stone

Taxes are the price you pay for being profitable. It’s a good thing when your business is in the black and you need to pay taxes on it. It’s not good when you’re taken by surprise.


Construction Business Safeguards: Fraud and Embezzlement

By Michael Stone

We hear many stories from business owners who have had to recover from the theft of funds by their own employees. Today we’re sharing a list of things you can do to protect yourself and your business.


Job Costs and Overhead

By Michael Stone

I’ve seen contractors try to apportion overhead on a daily, weekly, monthly or per job basis when compiling their estimates. I don’t recommend any of those approaches.


Bookkeeping, Markup, Taxes, Advertising

By Michael Stone

This week I want to catch up on a few things that have been bothering me.


Accounting – Keeping Track of Your Jobs

By Michael Stone

It’s easy to know if you’ve made a profit when every transaction is complete in a day. It isn’t as easy in construction, where a job might take a week, a month, or even more than a year to complete.


Paying Yourself

By Michael Stone

You’re in business to provide a service and make a profit doing it. Having the financial info you need to make decisions is critical for your business success.


Know What You Need, and When

By Michael Stone

In order to have a positive cash flow, it helps to know what your cash needs are today, in six months, and a year from now.


Recover Overhead and Profit in your Labor Rate

By Michael Stone

There are four basic ways to charge for construction services. These are fixed fee or lump sum pricing, Time & Material pricing, Cost Plus, and using an hourly rate.


Labor Rate for Construction

By Michael Stone

I’m frequently asked for the “industry standard” rate per hour for various types of work. There isn’t an industry standard markup, and there isn’t an industry standard hourly labor rate.


Is It Gouging or a Fair Price?

By Michael Stone

An earlier post of ours is getting a few homeowners riled up. The post discusses homeowners who have contacted us, unhappy about the prices their contractor is charging.


Overhead Expenses in Accounting Software

By Michael Stone

I was reminded again this week by a dear friend who is an expert in the use of QuickBooks of the necessary care that needs to be taken when you set up your accounting.


Provide a Service, Make a Profit

By Michael Stone

A young businessman called. He was in a state of shock after checking his books over the weekend and found over $11,000 in receivables, much of it over 30 days.


Salary and Markup

By Michael Stone

One of our clients called with cash flow problems. Leads were coming in, sales and production was good, correct number of employees for the volume of work, but no money.


Definition of Terms – Construction Accounting

By Michael Stone

Time for a quick review of some terms: gross profit, net profit, owner’s salary, owner’s wages. Owner’s salary is overhead, owner’s wages are a job cost.


Play By The Rules

By Michael Stone

I was recently involved as an expert witness for a contractor who wasn’t getting paid for work completed. The hardest part will be proving actual expenses for the job.


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