Recent Articles

Project Accounting

One of the several different sub-types of managerial accounting. It is used to provide a feedback loop on production issues related to large scale complex functions. A good example would be the construction of a hospital, the erection of a tower or installation of a manufacturing process system.

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 [...]

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.  [...]

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 [...]

Project Accounting – Introduction and Value

10/17/2014

In the world of accounting, project accounting is a subset of financial accounting.  Many folks believe it is a form of cost accounting and it is not.  Cost accounting is more formally a function of manufacturing and deals with large quantities of [...]