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Accrued revenue is the income a subcontractor has earned for work performed or in progress but has not yet billed (the general contractor or client) or received payment for. This typically happens due to the nature of construction contracts, where payments are often tied to milestones or project completion.

Example: An electrical subcontractor working on a large commercial building is paid based on completed milestones, with invoices due at the end of each month. By June 30th, they've finished 75% of the $100,000 job, but can't invoice until month-end. The $75,000 earned but not yet invoiced is their accrued revenue.

Tracking accrued revenue is crucial for accurate financial reporting, as it reflects the subcontractor’s economic activity for the period—even before invoicing or receiving payment. To gain even deeper financial insights, many subcontractors turn to Siteline. Our tool is tailored to help track pay application statuses and amounts owed, empowering subcontractors to make more informed, strategic decisions. Experience the benefits firsthand by scheduling a Siteline demo today.

A Conditional Lien Waiver is a legal document used in the construction industry that states a contractor, subcontractor, or supplier will give up or waive their right to place a lien on a property, under the condition they receive their expected payment. This waiver serves as a protection mechanism for the party responsible for payment, ensuring that once the payment is made, no future lien could be placed on the property for the services or materials provided.

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Long-term debt, in the context of the construction industry, refers to financial obligations that a construction firm or contractor needs to pay back over a period extending beyond one year. This could include bank loans, bonds, lease obligations, or mortgages secured for construction projects that are due over an extended time period. The purpose of such debt typically covers buying equipment, land acquisition, building construction, or any major capital-intensive activity that is invested in the growth and expansion of the company's operation. It is key for cash flow management and financial planning, as repayment schedules are set over multiple years which reduces the immediate financial burden. However, this requires effective management to avoid risk of default. Therefore, managing long-term debt is a critical aspect of a construction firm's financial strategy. If not handled properly, high long-term debt can affect a company's credit rating and financial stability.