• 90% of construction jobs go over budget

• Essential that you factor in unexpected costs and changes into initial estimates

• Have agreements in place help finance increased costs

• Bill for the right amount after work completed

  Understand That Time Is Money:

• Knowing true costs is essential in service-based business

• Labor typically biggest expense

• Must keep track of direct materials

• Direct and indirect labor + other indirect expenses (operating costs)

  Establish Your Business's Best Practices for Cash Flow:

• Effective cash flow management make or break construction business

• Essential establish back-office system to help improve cash flow management + forecasting with variety of cash flow best practices

Net 30 - whoever you’re invoicing has 30 days after they received your invoice to make a payment.

Retainage- holding back/ asking for a portion of payment to ensure a job is successfully completed. Between 5-10%.

Progress payments- bill on a month-to-month basis based on the amount of work completed. Can use a schedule of values.

• The tax brackets and rates are used to calculate taxes for people whose taxable income was over $100,000 in 2024.

• You have to file a California state tax return if you’re a resident, part-year resident or nonresident

• Here are some requirements

  • You’re required to file a federal tax return.

  • You got income from a source in California during the tax year.

  • You have income above certain thresholds

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