Recent Articles

Use Phase Accounting in Construction – Part I

Covers the costing elements of phases 1 – 4 in phase accounting. This includes cost drivers for admin, site development, footer, and the framing of the house.

Using QuickBooks in Construction Accounting

06/08/2013

Over the last 17 years I have become a fan of QuickBooks over other accounting software.  Having been involved in construction accounting, I have set up over 9 different construction clients on this software.  Overall it is the easiest and one of [...]

Construction Draw Schedule – Ranch Model Home

05/07/2013

This is a basic draw schedule explanation for an A-frame ranch model home.  This article details the draw schedule format illustrated below.  It details the approximate percentages for the respective phases of construction and explains how the [...]

How to Use Class Accounting in Construction

02/05/2013

Class accounting is a form of accounting whereby the revenues and direct costs are grouped into divisions within the company.  It is a very effective form of accounting in construction.  Learning how to use class accounting in construction is easy [...]

Construction Draw Schedule

01/22/2013

A construction draw schedule is a financial tool used by contractors in identifying percentage of completion points in the project for the bank to advance proceeds to the contractor. The construction draw schedule is instrumental in keeping the [...]

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 [...]