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

This Podcast Is Episode Number 0280, And It Will Be About Unique Contractor Bookkeeping Problems With Receivables Challenges Of Keeping Accounts Receivable Simple And Up To Date Creating an invoice for the entire project seems like it is the simple way to track payments and have the current balance. The harsh reality is that if all of the work is NOT done Accounts receivable is reflecting a balance due that is NOT REAL. With Change Orders to the projects (up or down), the original contract is usually not the end number. Accounts receivable is a reflection of money you expect to collect NOW. More extensive projects (especially new construction) the billing and payment schedule typically is a bill on the 25th of the month and hope to be paid on or before the 10th of the following month. Anything not paid is going to age on the Accounts Receivable (A/R) Aging Summary. Job Deposits, Retention, Notes Receivable (long-term payment plans) are not part of Accounts Receivable. Credits from suppliers, repayment of Loa