Accounting and Bookkeeping

  • 5 Reasons You Need Electrical Contractor Software

    Thousands of electrical contractors struggle year after year. Their operations are not finely tuned, profits never seem to climb, and the stress level is always high. Their owners never seem to have enough time for relaxing vacations or much-needed family time. To make matters worse, many of these businesses are completely dependent on its owner’s daily […]

  • Service Business Escrow Accounting

    Any service company that sells planned maintenance and service agreements, especially HVAC service companies, should be setup for escrow accounting.  However, many service companies do not know what escrow accounting is or how to implement this practice within their business model. What is Planned Maintenance and Service Agreement Escrow Accounting? Explained simply, escrow is when […]

  • Advantages and Disadvantages of SaaS (Software as a Service)

    Software as a Service is a type of software in which applications are hosted by a vendor or service provider over a network (typically the internet). Also known as ‘on-demand software’, SaaS is a distribution model where software and all of its data are hosted on the cloud. This data is typically accessed by users […]

  • The Five Biggest Problems With Flat Rate Pricing

    Below is an informative flat rate report which contains detailed information on how flat rate pricing actually works in the real world. We have identified five major problems with flat rate systems on the market and how Flat Rate Plus combats those problems. This comprehensive report will help you make a more informed decision about flat rate pricing. 1. Hard […]

  • Increase Efficiency With Service Business Software

    Each year, thousands of service contractors struggle with mismanaged operations, profits that never climb, high stress levels and more. To make matters worse, many of these businesses are dependent on the owner’s daily involvement in order to function properly. With service business software, you can run your business more efficient and become more profitable. It is […]

  • Support Vs. Training

    From time to time, questions arise about whether or not a particular request is covered under a technical support agreement, or if the issue is one requiring training. This question is sometimes very subjective and not always clearly classified. At other times, the difference can be difficult to define, but easy to recognize. In a […]

  • Cash Basis versus Accrual Basis Accounting

    Cash Basis versus Accrual Basis Accounting There are basically two accounting methods for managing your contracting or service company’s books. These accounting methods include “cash accounting” and “accrual accounting”. In this article, I want to discuss both of these and explain which is most appropriate for you and why. Please understand that these methods apply […]

  • Financial Ratios and KPIs

      Please Note: This is part of a series of articles titled Accounting and Bookkeeping Principles for Contractors Written by James R. Leichter Using Financial Ratios and Key Performance Indicators to Monitor Your Business In baseball, pitching managers use statistics to help them make important decisions; such as which pitch to throw, to what player, and under […]

  • Accounting and Bookkeeping Principles Intro

    Please Note: This is article numner one in a series of nine articles titled Accounting and Bookkeeping Principles for Contractors Written by James R. Leichter Overview Accounting is the process of compiling and organizing financial information to produce reports for financial analysis, the process of reading and interpreting financial data. Similarly, bookkeeping is the process of gathering raw financial data, paying […]

  • Chart of Accounts for Contractors

      Please Note: This is part of a series of nine articles titled Accounting and Bookkeeping Principles for Contractors Written by James R. Leichter Chart of Accounts for the Service and Contracting Business Introduction A Chart of Accounts is a list of the financial accounts (bookkeeping) for a business, systematically arranged, generally according to assets, liabilities, equity, […]

  • Income Tax Accounting

      Please Note: This article is part of a series of articles titled Accounting and Bookkeeping Principles for Contractors Written by James R. Leichter Income Tax Accounting Contracting businesses must pay income tax based on their calculated taxable income. There are typically two ways of approaching income calculations: The GAAP-established measurement of income, called the financial accounting income, […]