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...
The percentage of completion method calculates the ongoing recognition of revenue and expenses related to longer-term projects determined by the proportion of work completed. By using this method, a company can recognize any gains or losses related to a project during...
Payroll will always be one of the top priorities for any company. After all, its management directly impacts the relationships with its employees and the quality of work. Unfortunately, construction payroll is one of the most unique and complex payrolls due to the...
