What is an Equity Turnover Ratio?

Self-perform, in the context of the construction industry, refers to the ability of a construction company to use its own workforce to accomplish certain specific tasks or projects, rather than outsourcing or subcontracting to external teams or entities. By opting to self-perform, the company can have direct control over the quality of work, project timeline, cost management, and overall productivity. For example, a construction firm may choose to self-perform tasks like concrete placement, plumbing, electrical work, and roofing operations, maintaining stringent quality standards all along. However, it is essential for companies undertaking self-perform tasks to have skilled and trained personnel who can efficiently execute the work. To sum up, self-perform allows construction firms to maintain better control over the project while potentially saving costs and enhancing efficiency.

A Cash Flows Statement, specifically in the construction industry, serves as a financial document that provides a detailed summary of a company's cash inflows and outflows over a certain period. This statement plays a crucial role in understanding the liquidity and solvency of a construction company as it helps track where the funds originate and where they get spent. It is segmented into three elements: operating activities (day-to-day operations of the construction business), investing activities (acquisition or disposal of assets), and financing activities (transactions with owners or lenders). It provides invaluable information for contractors, investors, and stakeholders, enabling them to scrutinize the financial health, operational efficiency, and investment potential of the construction company.

Cost accounting in construction is a specialized accounting practice that captures, records, and analyzes all costs incurred during construction projects. This includes direct costs like materials, labor, and equipment, as well as indirect costs such as project management, insurance, and overhead allocation. 

Unlike general accounting, which focuses on overall financial reporting, cost accounting drills down into the specifics of where every dollar goes on each project. It's designed to provide detailed insights into project profitability by tracking costs against budgets in real-time, helping construction teams understand not only how much they're spending, but also whether that spending aligns with projected margins and timelines.

Siteline helps subcontractors maximize the value of their cost accounting by streamlining the entire accounts receivable (A/R) process that turns project costs into collected payments. Our platform generates custom pay applications, manages compliance documentation, tracks change orders, and provides real-time A/R reporting, ensuring that all the financial insights from your cost accounting translate into faster, more predictable cash flow. Request a personalized demo here.