Daniel, a CPA who works exclusively with painting businesses, and Richard Dunton, an enrolled agent, discuss the financial considerations for commercial painting as a way to smooth out seasonal dips in business. They explore the differences between direct B2B commercial relationships versus working under a general contractor, highlighting the challenges and opportunities of each approach.

• Two types of commercial painting: direct B2B relationships and working under general contractors

• Cash flow challenges in commercial painting compared to residential work

• The importance of managing accounts receivable and following up on payments

• Understanding AIA invoicing formats and progress payment schedules

• Special payroll requirements for government projects including prevailing wage certified payroll

• Using accrual basis accounting to properly match revenue with expenses

• The importance of reviewing both profit/loss statements and statements of cash flows

• Setting up financing and lines of credit before you actually need them

• Building relationships with banks when your financials look strongest

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