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Although the commercial construction industry in the DC Metro area seems to be picking up, gross profit margins continue to be tight. These continued tight margins make it ever so important to have timely, accurate, monthly financial statements so the proper business decisions can be made. Nothing drives the financial statements for a contractor more than the calculation of the under and overbillings on a work-in-progress (WIP) report. This report allows the financials to accurately recognize earned revenue on contracts under the percentage of completion method. Without this data on a monthly basis, the financial statements are not worth the paper they are printed on. While cash might still be king in today’s business world, data is its first-born heir. It is this data that feeds the decision making processes of a successful business.
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