Industry Standards

Learn about performance standards and methods to monitor your company’s results against industry standards. There a multitude of tools and principles to guide the business owner to success.

Railroad Stock – Discovering Opportunities

Railroad stocks are solid and steady investments. There is limited downside risk and adequate historical data to illustrate buy and sell points for an investor. If properly applied, an investor should earn yields of 18 to 30% year on year. Learn how to develop the investment model for this particular industry.

Railroad Stock Investments – The Standard of Measurement to Buy and Sell Railway Stock

The transportation sector of the United States economy is comprised of nine industrial groups.  One particular group moves more volume of tonnage based on ton miles than any other form of transportation – Railroads.  In accordance with the Federal Department of Transportation, railroads move 39.5% of all freight in the US (based on ton miles which is the length freight travels).  It’s a $60 Billion industry with over 140,000 miles of track.  It is dominated by seven major carriers (referred to as Class I Railways).

Billings in Excess

‘Billings in excess’ is a construction industry financial term referring to the dollar value of charges to customers in excess of the costs and profits earned to date.  It is reported on the balance sheet in the current liabilities section.  It is in effect, the dollar value the contractor owes back to the customer for incomplete work.

Hard and Soft Costs With Construction

Tangible and Intangible Meaning

All hard costs are directly assignable to a job.  These costs are most often tangible in nature, but there are many intangible costs that can be directly assigned to the job.  Thus some intangible costs are ‘Hard’ costs. A contractor must understand the difference between hard and soft costs in order to properly markup assignable costs to determine the final sales price of the project built.

Restoration Contractors – Business Dynamics

Restoration Contractors

Restoration contractors face a different set of business dynamics than the traditional new home builder or remodeler. Unlike the builder and remodeler, restoration companies deal with a third party in their contract negotiations and performance. The new home builder uses the market to determine the value of their product, whereas the restoration contractor is forced to perform services based on pricing models set by insurance underwriters.

Setting Up Item Codes for Contractors

Item Codes

A common problem for contractors is setting up item codes in their accounting software. Most accountants and bookkeepers fail to fully understand the concepts behind item codes and how it works with the construction industry. This article is designed to explain to you the underlying concepts and how to set up item codes for contractors.

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