TLDR: A Work-In-Progress (WIP) schedule is a valuable tool for construction companies to track project finances, determine revenue recognition, and make informed managerial decisions by providing a snapshot of project profitability and identifying areas for improvement. 00:00 📊 A work-in-progress (WIP) schedule provides a snapshot of a construction company's profitability on a project-by-project basis, helping to identify areas for improvement and ensure accurate financial reporting. 01:47 📊 A Work-In-Progress (WIP) schedule tracks construction project finances to determine if a project is over or under billed. 04:29 📊 The WIP schedule calculates percentage of completion by dividing cost to date by total estimated cost, which is used to determine revenue recognition and WIP adjustment. 06:28 💡 Revenue recognition is calculated by matching 67% of the total estimated revenue ($1 million) to the 67% completion rate of the project, resulting in $678,000 recognized revenue. 07:55 📊 A journal entry is made to recognize revenue and report "under billing" as an asset on the balance sheet to accurately portray the company's financial situation. 10:22 📊 To recognize revenue, calculate 57% of the contract amount ($1.2M) based on the percentage of total estimated costs incurred ($1.06M), resulting in $705,000, which is less than the $710,000 already billed, indicating overbilling. 11:46 📊 A non-cash basis WIP schedule helps construction companies make managerial decisions by showing project progress, as cash basis financial statements can be volatile and unreliable. 12:38 📊 A WIP schedule can be set up on a weekly, monthly, or quarterly basis, depending on the company's needs and accounting team.

TLDR: Cash flow projection is essential for construction companies to anticipate and address potential cash problems, track and manage finances, and make informed decisions for a more lucrative business model. 00:00 💰 Cash flow projection is important for construction companies to predict future cash flow and spot trends for accurate reporting. 00:49 💰 Construction companies need to create cash flow projections to anticipate and address potential cash problems in order to stay in business. 01:57 💰 Integrate your financials and be honest when creating a cash flow projection for your construction company. 02:52 💰 Be accurate with your cash flow projections, account for anomalies, and use the report to identify inefficiencies and make necessary changes for a more lucrative business model. 03:53 📊 Create a cash flow projection by analyzing historical financial statements for a more accurate report. 04:32 💰 Projected cash flow statement helps track cash position each month to accurately reflect real cash on hand. 05:22 💰 Projected cash flow statements are important for construction companies to track and manage their finances. 06:33 💰 Cash flow projection is essential for construction companies to create financial structure and make informed decisions.

TLDR: Construction expenses for developing property should be treated as inventory on the balance sheet rather than as direct costs on the profit and loss statement, and adjusting entries are needed to accurately reflect the financial position of the company. 00:00 🏗 Accounting for developing property involves treating all expenses as direct costs on the profit and loss statement. 01:31 💡 ABC construction company owns and is building on land, with expenses being reported on the P&L but should actually be recorded as inventory on the balance sheet. 02:24 💡 Adjusting entries are needed at the end of each month to remove construction costs from the profit and loss statement in QuickBooks. 02:58 💡 When building on purchased property, incurred costs can be recorded as inventory through a journal entry creating a dummy income account. 04:32 🏗 Create a construction in progress account to track each development property separately. 06:17 💰 Inventory of development property is not an expense until it is sold, at which point the expense is reported and the property is removed from the balance sheet. 07:17 💰 Construction in progress should be moved to the balance sheet to accurately reflect liabilities and equity when borrowing for development property. 08:38 💰 Construction expenses need to be capitalized monthly to accurately reflect the balance sheet and profit and loss statement.

TLDR: Cost codes are essential for organizing and tracking expenses efficiently in the construction business, and contractors should carefully consider which cost codes to use to avoid confusion and inefficiency. 00:00 🏗 Different construction companies use different cost codes, so it depends on what you need for your business. 00:35 🏗 Each cost code corresponds to a specific job cost and is important for job costing in the construction business. 01:36 🏗 Commercial contractors use cost codes for categories like site work, concrete, masonry, metals, woods, plastics, thermal protection, doors, windows, finishes, and specialties, while residential contractors use cost codes for categories like permitting, site work, foundation, framing, exterior, windows, doors, roof, columns, brick, mechanical, electrical, insulation, and flooring. 02:48 🏗 Having a large number of cost codes works for some contractors, but for most it can lead to confusion and inefficiency. 03:56 🏗 Contractor uses cost codes for different construction categories to organize and track expenses efficiently. 04:24 💰 Cost codes are specific expenses on the general ledger, such as direct labor, subcontractors, and materials, and are used to track specific items or expenses. 05:16 🏗 Edit cost codes for different construction items to accurately track direct costs and subcontractor expenses for better profit and loss reporting. 06:26 💡 Use cost codes to track detailed job costs, labor, materials, and expenses for tax returns, as well as to compare estimates with actual expenses for budgeting purposes.

TLDR: Evan Hutcheson offers efficient and affordable bookkeeping services tailored to small construction companies, helping them keep track of their expenses and stay on top of their finances. 00:00 📚 Evan Hutcheson offers bookkeeping services tailored to small construction companies, providing efficient and affordable solutions for messy books and financial statements. 01:47 📝 Affordable rates for bookkeeping services, quick review of work, and great rates offered. 02:11 💼 Construction company profit and loss statement shows $300,000 net income, and bookkeeping involves exporting and categorizing bank and credit card transactions. 03:18 📝 Keep track of your construction company's expenses by creating a job code spreadsheet and inputting it into QuickBooks for accurate bookkeeping. 04:36 💼 Use job numbers and expense codes to track construction company expenses and overhead in QuickBooks for detailed reporting and budget analysis. 06:26 💼 Keep track of your actual costs, use a strategy that works for your business, and provide your CPA or bookkeeper with the necessary documents for a quick and minimal fee monthly review. 07:35 📚 Reviewing QuickBooks regularly with an accountant can help construction companies stay on top of their finances and understand their books. 08:28 💡 Construction company bookkeeping is the best and most efficient option, and the speaker is available to help with any questions or assistance needed.

Excellent. Thank you.

Excellent! Exactly what is needed. : ))

Very informative session about 1040 ,Thank you so much sir

Just moved here and naturally closed llc in NY and opened one here for wife's coaching business here. Just realized the llc is gonna cost 6.5% a year and the savings for scorp election for SE Tax only makes sense for 125k to 175k income. Is it worth it considering the paperwork and reporting.

Thank you for the video!!! We learn a lot from you! Thank you!

Found your post interesting to watch. I can't wait to see your new videos soon. Good Luck with the upcoming update. This KZbin channel is really very informative and effective.

This is a fantastic video. It's clear and easy to understand your explanations. Thank you for providing this information.

I need to sell a property and buy three. Nerve wracking.

Wow this video is great. Is there a way that I would be able to get a copy of the spreadsheet from you with the codes? I am starting the books for my husbands construction company and a little overwhelmed. I have no idea where to start but this seems great!

So as you have this information - how does it feed into the basis of new property for depreciation?

I like your video presentation. It is informative too, at the same time. Thanks a lot for your guidance!

This was great Much appreciated

Thank you!

Quick Question if I subcontracted a lot of work this year to other contractors what section do i put that in?

Thank you!

Accounting convention: Enter all the debits first and all the credits last. I have a Settlement Cost (COGS) account however, I nest all the COGS under that, in this manner when I print the P&L there is no question as to what the settlement costs are. Taxes are expensed, so they will not show in COGS. The Fixed asset sold, in this case a building is entered as COGS. Cost of property acquisition. Debit COGS and credit the Fixed asset. Some CPA deduct the cost of the acquisition from the revenue, however, I prefer to debit COGS. and leave the sale of the property intact.

Do I have to file my taxes with my S corporation even if I didn’t do any business or make any money And if so can you help me

My dad basically took some money from me, and is now paying me back without interest. Where do I report that?

Speed 1.25% and enjoy

please do ones like this showing how us smllc can get the llc dissolved and all things changed to the sp that will have to be changed. and how to file the f&e tax would be great, that form is so hard to understand. strange how our state we have to pay 6.5% on excise tax just selling mainly out of state clothing.

In TN an LLC has to pay 6.5% excise tax on net income. only a few are exempt from this. It is something I wish I knew ahead of time and now have tons of things to do to dissolve the llc and just have it as a SP who doesn't have f&e tax in TN.

Thanks for sharing your time to provide us with this information! ❤️

Thanks for making video on this.

Thank you so much for this

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Great video, help a lot.

Hi Evan, thank you so much for this video, it really thought me alot. You're the best Please Evan how can I contact you privately maybe your email or something PLEASE DONT TURN ME DOWN☹☹

Thanks ☺️

your link is to a asian site

Evan you the man i searched and looked at 1,million videos With CPA in front of a board just showing how nice their well press dress shirt looks on you tube ( all useless videos ) you Evan are the only one who explained it simple & clearly from beginning to end on how to do the 1040 as self employed plus you did not waste our time showing off your nicely pressed dress shirt thank you were can i send you some money for this valuable information

I need help please

Does a sole proprietor with no employees don’t fill out line 1 correct??

I really like this method. The only I thing I noticed is that this entry adds a line for the sales tax code that has to be adjusted from the actual revenue declared (Canadian tax code).Any suggestions ?Thank you.

If I am selling T shirt on Amazon, importing from China. Can I use cash method? Where do I claim for start up cost and organization cost? If I buy computer after my business open. Is that still consider start up cost?

how would i do this with 2 sole proprietorships? would i just add the income from both business and add it to one 1040?

What is the fastest way to get my taxes registered to the IRS? Efile 1040ez or turbotax?

Your support and encouragement have always been the driving factors in my life.#kellyytoolzsz on IG I want you to know that.🙏

Your support and encouragement have always been the driving factors in my life.#kellyytoolzsz on IG I want you to know that.🙏

Evan, thank you SO much for taking the time to share this. Your voice and the flow of explaining is so calming and on point-- saving this and sharing with everyone!

Hi. Just came across this and had a quick question - I started a small business (by myself; one employee) in late 2019). I didn't make much because it was new and I started in mid October. I'm trying to file for loans/grants, but I'm needing to file that years taxes first. Is this the form I'd use and if so, is there a way for me to file them online? ANY help/advice would be greatly appreciated. Thank you in advance!

I have a property with suspended passive activity losses. I sold the property in January. As the property was being sold, it was not being rented out, and does not qualify as rental property in the year of sale (i.e. I can't use Schedue E). How do I claim the suspended passive activity losses in the year of sale when the property was not classified as a rental in the year of sale?

dude Mr. Even you made everything down to earth where a person does know s..t about taxes have to learn more from your video than the rest thanks

So Quickbooks is basically the go-to for small business book keeping once you get cost codes set up?

Dear Sir How to submit online and where please when I fill it out?

Would i have to file taxes for myself as a sole proprietor ANDa separate one for my business ?