erhaps one of the most important topics that all construction companies need to consider, indirect costs require proper tracking and allocation to achieve financial success. Every construction business knows “their cost” because it affects project bids directly;...
Construction finance experts must constantly overcome unexpected challenges due to the abnormal complexity of the clients and markets that they provide services to. At any given time, a job site could be suspended, or short-term setbacks could create labor shortages...
While there may be many similarities, construction accounting is often vastly different from regular business accounting. In addition to the standard payroll, accounts receivable, and accounts payable, construction companies must account for job costing, progress...
For construction companies, it can often be challenging to determine which metrics are most important for effectiveness. Between P&L statements and never-ending balance sheets, it can be easy to get distracted and lose focus of what these numbers mean for the...
Since construction contracts are typically long-term with delayed payments, contractors are rarely able to complete, bill, and collect on a contract in the same month. In fact, for many contractors, this never happens. With multiple accounting options to choose from,...
Accounting and financial management is a difficult task in all industries but even more so in construction. Varying lengths of contracts along with a large, transient workforce can make accounting in construction challenging. Unlike other businesses that can take a...
While we all make mistakes, some are more costly than others. No matter the industry, accounting requires diligence and attention to detail to avoid major pitfalls. For construction companies, common errors may be hiding behind the numbers unless great care is...
All accounting uses the same accounting equation: liabilities plus equity-equal assets. Assets are what you own, liabilities are what you owe, and equity is what is leftover. While accounting is vital for any business, in the construction industry, firms and...
Cash Basis The simplest accounting method used in construction, cash basis, allows accountants to record revenue when it is received and when expenses are paid. However, once revenue is recognized and recorded, you must allocate expenses evenly, spanning the entire...
Though accounting is a vital aspect of successfully managing a construction company, mastering your business finances can be quite challenging. Due to the complex nature of the work, construction accounting differs from regular business accounting. While both have the...
