Of the four methods used to recognize income, costs, and profits on construction contracts, cash and accrual are most familiar. The best accounting method for remodeling projects is percentage of completion because it recognizes revenue, cost, and gross profit throughout the life of each contract based on a periodic measurement of progress.
I find that service contracts on copiers usually make good sense, but not those on computer hardware.The effective interest rate charged may be higher than what you would pay to finance a purchase.
Every remodeling company should have a detailed marketing plan and operating budget broken out month-by-month. Start by identifying the kinds of marketing activities you plan to pursue and the month you expect to incur the cost. As you develop and monitor your marketing plan in the coming year, here are some tips for controlling expenses: Substitute "free" advertising for paid.
A list of New Year's resolutions that will help you improve your bottom line.
