116: When Do You Actually Earn Revenue? (The 5 Rules You Must Know)

Building Profit For Construction

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In this episode of Building Profit, Steve dives into one of the most misunderstood topics in construction finance: revenue recognition. Just because the money hits your bank account doesn’t mean you’ve earned it, and messing this up could lead to chaotic books, cash flow surprises, and even bankruptcy-level mistakes.

Steve breaks down the five key rules every contractor must follow when it comes to recognizing revenue, even if you’re not a “numbers person.” From deposits to change orders to percentage-of-completion billing, he walks you through what matters, why it matters, and how to fix your process before it bites you later.

If your income statement swings like a rollercoaster—or you’ve ever looked at your profit one month and thought, “That can’t be right”—this episode is for you.

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