Recent Articles

Construction in Process

Sometimes referred to as ‘CIP’ it reflects the total direct costs of construction for various projects. It is customarily found in the current assets section of the balance sheet and is used as a tool for management to evaluate their respective financial position.

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 [...]

Project Reports – Introduction

06/09/2015

There are basically three groups of financial based project reports.  Each set has its own priorities and purposes.  Project reports are a function of production reporting with the exception of the balance sheet set (commonly used for cash flow [...]

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 [...]

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 [...]