Recent Articles

Construction Accounting

A type of accounting used to identify costs associated with the physical costs of building residential homes or additions.

Job Cost Reports – Balance Sheet Set

06/15/2015

Construction accounting uses job cost reports to inform management of progress and existing issues with projects.  There are several different sets of reports.  The balance sheet set functions as an overall financial picture for the company.  The [...]

Markup Percentage for Remodelers

05/20/2015

In the construction industry, remodelers face a different set of criteria than your traditional new home builder.  Because of these issues the markup percentage on costs is generally much higher than other forms of construction.  If you are a [...]

Construction Accounting Terminology

05/15/2015

In construction accounting accountants and bookkeepers use certain terms and there are distinct meanings associated with these terms.  This article is designed to introduce beginner accountants and contractors to these terms from the perspective of [...]

Branching Out in Construction

05/05/2015

When you own a small construction company many people depend on you.  There is your family, employees and subcontractors.  A typical $2,000,000 per year operation will have upwards of 20 people dependent on the contractor for their livelihood.  [...]

Progress Billings in Construction

04/27/2015

Just like a tip of an iceberg, a progress billing for a construction project is an invoice for a small part of the overall contract value.  It needs to be recorded correctly and presented to management in a way that is understandable and beneficial [...]

Project Accounting Principles for Residential Contractors

04/04/2015

Almost every residential contractor I had as a client had no clue of their financial position as it related to any one of their residential contracts.  None of them knew whether the project was fully funded, over funded or unfunded at any point in [...]

Contractor’s Profitability

01/09/2015

I’m surprised at how many visitors to this section of the website are oriented to what is a fair profit for a contractor.  I’m not referring to the industrial or the commercial contractor; I’m referring to your standard residential [...]
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