Bookkeeping

That means a contractor’s profit margin may be held back long after their portion of the work is complete. You can avoid a fair bit of cash flow problems by negotiating more favorable retainage rates/terms with project owners. For example, instead of a fixed 10% holdback on each progress billing, you might negotiate terms that reduce that rate to 5% once the job reaches the halfway point. Maintaining a healthy business also means learning how to correctly recognize and report