December 5, 2017

Yes, you most likely should track WIP.

You might say, "What's the big deal anyway? I'm busy. I've got jobs stacked up. In fact I have to turn down people.  My bank account is full. My big problem is getting all the work done."

So, why would I spend time on the details of WIP and over-under billing? 

There are some very good reasons that will pay off for your business if you do track WIP.

Before we get to those reasons, WIP is especially important when your company: 

  • Has jobs that will be completed and billed over a few months. 

  • Multiple jobs underway. 

  • Wants to secure more or larger bonds, construction loans. 

  • Needs smoother, cleaner cash management. 

Conceptually, tracking WIP and over/under billing is relatively straightforward. If you are 10% through a job and have billed 10% of the total, there is no over/under. You are in good shape. 

The issue arises when your billing and percent complete don't match. Let's say you complete 25% of the job and have only billed 10% a...

September 15, 2017

The local Portland, Oregon, CFMA chapter held an Emerging Issues meeting, at which cybersecurity and legislative issues took front and center in the latest meeting. Michael and I attended, and there were many useful tidbits, which I've summarized here.

Cybersecurity threats and best practices

An opening statement by one attendee pointed out that, "Construction companies keep their valuable data on site, on their own servers, with on-site software. And they don't do regular security updates to the software."  

At first glance, this does not seem too bad of a process. After all, most small companies do exactly this. 

Enter "ransom-ware" or "Cry-ware" as some call it. Take a guess why it's called "cry-ware."  

An example given during the meeting involved a construction company (about 20 million in revenue) that had their internal servers taken over by ransom-ware recently. The company lost access to all project information, accounting information, customer information. Everything that they kep...

Please reload

Also see:

Silvertrek Systems LLC - Copyright 2020