Key Takeaways Working Hard, Slow Reward? If you’ve ever wondered why your business feels busy but your bank account isn’t reflecting all that hard work, it might be time to check your cash conversion cycle (CCC). You may be doing GREAT on paper—sales rolling in, jobs getting done, invoices flying out—but, if the cash isn’t […]

Key Takeaways When “Net 30” Becomes “Never” If you’ve ever extended credit to a customer and ended up chasing payment like a cat after a laser pointer—only to eventually give up—then you’ve encountered the bitter reality of bad debt, and if you’re wondering how to handle that in your books, welcome to the world of […]

Key Takeaways It’s Not Just Stuff on a Shelf If you’re in a field service business like HVAC, electrical contracting, plumbing, or any trade that relies on stocked parts and supplies, you’ve probably asked (or at least wondered), “Is inventory a current asset?” Spoiler alert: Yes, it is. But, as always in accounting, the truth […]

Key Takeaways The Importance of Good Accounting Construction accounting is the basis of a contractor’s business decisions. While you may not be an accountant, or even like accounting, you are likely a decision-maker. You are asked to make numerous business decisions every week, and your decisions need to be correct the vast majority of the […]

Key Takeaways If you’ve ever squinted at a balance sheet and wondered, “Wait, is accounts receivable an asset or a liability—or just some mystical number floating around?” —you’re not alone. For field service businesses especially, where jobs are billed after completion, understanding where A/R fits in your financial picture is critical. In this no-fluff guide, […]

Key Takeaways Is Accumulated Depreciation a Current Asset? This question is a common point of confusion—even among seasoned field service business owners and accountants. Here’s the short answer: no, it’s not. But the real value lies in understanding what it is and how it impacts the accuracy of your financial statements. Knowing this helps you […]

Key Takeaways Before You Quote That Job… I know, figuring out how to calculate manufacturing overhead isn’t the most glamorous part of running a field service or production-based business. But, if you want to stop wondering where your profits went and start quoting prices that actually make you money, understanding overhead is non-negotiable. Whether you’re […]

Key Takeaways Every field service accountant has faced the dilemma of outstanding invoices collecting dust on the books. Whether you’re tracking down payments for emergency HVAC repairs or routine electrical maintenance, unpaid invoices can quietly sabotage your business. That’s why knowing exactly what’s owed—and for how long—is critical. Enter the aged trial balance, your secret […]

Key Takeaways Learning how to create a construction budget may feel intimidating if you’ve never tackled a large project before. Even small renovation jobs can involve juggling material costs, labor expenses, and unexpected fees. In this article, you’ll discover practical strategies for drafting a construction budget in spreadsheet software (Microsoft Excel, Google Sheets, Zoho Sheet, […]

Deferred revenue, also known as unearned revenue, is a crucial concept for HVAC and plumbing companies that often receive payments in advance for services. It represents money received for goods or services yet to be delivered, making it a liability on your balance sheet. Understanding and managing deferred revenue ensures accurate financial reporting. This guide will walk you through the definition, accounting treatment, and importance of deferred revenue, complete with an example journal entry. By the end, you’ll be equipped to confidently handle deferred revenue, ensuring your business remains financially sound and trustworthy.