Author: David J Hoare MSA
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Purchase Orders – Introduction to Fundamentals
Purchase orders are requests to a seller to provide a certain product or service. Purchase orders are a business tool to control both physical and financial outcomes related to operational activities.
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Journals and Ledgers
Accounting is the process of recording economic activity and organizing this information in a format to inform owners about financial results. It all begins with the journals and ledgers.
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Class Accounting With QuickBooks
Class accounting is one of the options available with QuickBooks software. Most accountants and bookkeepers misunderstand its purpose and how to properly implement this wonder tool of accounting.
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Subcontractor Documentation
Similar to documentation required for hiring an employee, companies must acquire certain documentation from their subcontractors.
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Cost of Services Rendered
Service based operations do not use the traditional retail based format for the profit and loss statement which utilizes a ‘Cost of Goods Sold’ section, instead the service industry uses a ‘Cost of Services Rendered’ segment. The presentation format is very similar though.
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The Contractor Subcontractor Relationship – An Understanding
With construction, no other mutual bond has such a high dependency on each other as the contractor subcontractor relationship. If the relationship is developed properly and with a mutual understanding, it can be very successful.
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Labor Burden Rate – Introduction and Understanding
Labor burden refers to the additional costs an employer pays to have employees. The labor burden rate is a value added onto direct wages to understand the actual cost per unit of wages paid for an employee.
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Pooling of Costs – Basic Understanding
Pooling of costs is an accounting trick used to facilitate better matching of costs against the respective revenue stream or predicted cost for the respective product or function.
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Open Job Cost Status Report
The Open Job Cost Status Report identifies a project’s actual costs of construction, amounts borrowed or financed, and any customer payments made to date. The net result is the contractor’s net investment into the respective project.
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Markup in Construction – Fundamental Understanding
Markup in construction has a very simple definition, it is the amount added onto costs to create a sales price. Notice something really important with that definition, it does not define profit.