Recent Articles

Implement cost accounting in your construction company

It is important to understand the fundamental reasons for cost accounting. In the construction industry it is a must.

Methods to Reduce Costs in New Home Construction

01/30/2013

This article describes methods to reduce the overall cost of construction for a new home.  The new home construction industry has been hit hard by the devaluing of real estate during the four year period of 2008 to 2012.  There is no reliable [...]

Capitalizing a New Home Builder Business

01/30/2013

Bankrolling any startup business is difficult enough.  Capitalizing a new home builder operation is a leap forward in required funds.  Typically, small businesses can be capitalized on a shoestring budget, for a new home contractor, just a little [...]

Use Phase Accounting in Construction – Part II (Trades)

12/21/2012

The most effective form of a financial feedback loop in residential construction is phase accounting.  Phase accounting is a subset of cost accounting and generates accurate information in the world of new home and residential additions for small [...]

A Model of Excellence

12/04/2012

During my 17 years of doing accounting work, I had the privilege of providing temporary controller duties for a new home contractor.  He built custom homes in an upper middle class area.  The homes ranged between $450,000 to $900,000 depending on [...]

Cost Accounting – Case Study

11/26/2012

“Pull out your checkbook”.  “OK” the client responds.  I continue, “Now write out a check for $200, and leave the ‘Pay to’ spot blank.  The next time a customer for restoration work calls, get their name and address, write [...]