Chelsea Stenson

In a service-based business, time is literally money, and every day an invoice goes unpaid, your margin shrinks. Unlike product businesses that can rely on physical inventory to back up value, service providers face a unique cash flow vulnerability: you've already delivered the work, paid your team, and covered overhead long before the client settles the bill. That makes managing your Accounts Receivable (AR) aging schedule critical to survival. But how do you know if your outstanding invoices are normal or a sign of trouble?  Understanding key AR aging benchmarks, and where your service business stands relative to industry standards, is the first step toward reclaiming your cash flow and protecting your bottom line.This article walks you through the 30-60-90 AR Health Check and what healthy numbers look like for your business.

Between tracking fluctuating material costs, managing subcontractor fees, and juggling multiple active jobs, contractors face a unique set of financial complexities. At the heart of keeping these moving parts organized is the Chart of Accounts (COA), the foundational index of every financial transaction your business makes. For a contracting business, a well-structured COA does far more than just keep the tax preparer happy. It serves as the backbone for accurate job costing, allowing you to see exactly which projects are driving profits and which ones are eating into your margins.  This article will guide you through the essentials of building a specialized Chart of Accounts tailored specifically for contractors, highlighting the unique categories you need to track, and sharing best practices to streamline your bookkeeping and elevate your business insights.