Contractor Success Map With Randal Dehart | Contractor Bookkeeping And Accounting Services

This Podcast Is Episode Number 521, And It's About Unlocking The Secrets Of Small Construction Business Cash Flow Cash is king! Construction Company cash flow is the movement of money in and out of your Construction Company; these movements are known in accounting circles as inflow and outflow. Inflows for your Construction Company primarily come from selling goods or services to your customers, but keep in mind that inflow only occurs when you make a cash sale or collect on receivables. Other examples of cash inflows are borrowed funds, income derived from sales of assets, and investment income from interest. Outflows for your Construction Company are generally the result of paying labor, material, other direct and indirect costs of goods sold, and overhead expenses. Is Cash Flow Same As Profit? While they might seem similar, profit and cash flow are two entirely different concepts, each with completely different results. Profit helps calculate your taxes and report to the IRS. The idea of profit is somewhat