Worker classification is one of the biggest compliance risks in construction payroll, and it’s an area where many contractors unintentionally make costly mistakes. Many contractors assume they can simply label someone an “independent contractor” to avoid payroll taxes, workers’ comp, or benefits. But the IRS, state agencies, and the Department of Labor all have strict […]
Author Archives: Liz
If you run a construction business, you’ve probably heard the term COGS—short for Cost of Goods Sold—and wondered whether it applies to you. After all, you’re not selling retail products or manufacturing items on an assembly line. You’re building projects, managing crews, and coordinating subcontractors. So, do construction companies have COGS? The short answer is […]
Running a construction business means juggling a lot at once — job costs, subcontractors, materials, change orders, progress payments, and the never‑ending flow of receipts. With so much happening on every project, it’s easy for your books to drift out of sync without you even realizing it. That’s where monthly bank and credit card reconciliation […]
Building a construction business takes hard work, know-how, and plenty of long days. But when it comes to bookkeeping, even the pros can slip up. The good news? Dodging a few common mistakes can save you cash, stress, and headaches. Let’s break down the top three trouble spots and how to steer clear of them. […]
Individuals who receive non-employment income are generally required to report that income to the IRS using a 1099 form. Unlike wages or salaries reported on a W-2, 1099 forms capture income from sources beyond traditional employment—making them essential for accurate tax reporting. Why Are 1099 Forms Important? The IRS uses 1099 forms to cross-check the […]
Every construction company—large or small—faces cash flow difficulties at some point. Some struggle more than others. Many confuse cash flow with profit, yet even highly profitable businesses collapse when cash flow runs dry.