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

This Podcast Is Episode Number 0333, And It Will Be About Why High Demand Doesn't Always Equal High Profit In Construction   The business cycle operates like ocean waves that cause a lot of construction business to go out in a year or two. Some grew too fast without reliable financial reporting tools and proper guidance.   As you may know, there is an expansion and contraction Isoquant that occurs in all businesses. For construction companies, it is accelerated because of the enormous risks in project work. The changes in demand for Labor, Material, Other Costs, Subcontractors can occur almost overnight which often causes a financial death spiral, and the contractor does not know they are in trouble before it is too late.   We have discussed time and again that construction accounting is different from regular accounting because of the confusion between Costs of Goods Sold and Expenses, and that is one of the significant issues here. Also billing and invoicing is a bit more complicated because the sales ar