Many contractors don’t have a strong financial background, nor do they like accounting. However, there are simple procedures and financial logic that can help contractors avoid negative financial situations. This article is designed to identify simple errors contractors may make.
How much cash is in the bank can be a misleading factor when studying the health of a business. Cash makes us feel good and is deeply ingrained in our psyche. As a kid, if you made a few bucks mowing a yard or running an errand, it was great — you had money to spend. Business doesn’t exactly work this way. Just because we have cash on hand, doesn’t mean the business is making money at that moment.