Industry Standards

Learn about performance standards and methods to monitor your company’s results against industry standards. There a multitude of tools and principles to guide the business owner to success.

Contractor’s Chart of Accounts – Completed Contract or Percentage of Completion Method

Contractor's Chart of Accounts

The  contractor's chart of accounts is significantly different than the traditional chart of accounts.  First off, the layout is more dependent on the balance sheet than the income statement (profit and loss) accounts.   Furthermore, the income statement accounts are laid out to present a resource based costing presentation than a job costing format.   To add another layer of complexity, the chart of accounts is somewhat oriented to the method of accounting selected by the contractor.

This content is for Bronze, Silver, One-Time and Contractor's Diagnostic members only.
Log In Register

Cost of Services Rendered

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.

This content is for Bronze, Silver, One-Time and Contractor's Diagnostic members only.
Log In Register

Open Job Cost Status Report

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.

This content is for Bronze, Silver, One-Time and Contractor's Diagnostic members only.
Log In Register

Cost Codes – Subset of Item Codes

Cost Codes

Cost codes are unique identifiers assigned to items in an inventory sold individually or as a part of an assembly. The goal is to track the final outcome of the item(s) sold against the original estimated cost of the item. It is used in both financial and cost accounting.

This content is for Bronze, Silver, One-Time and Contractor's Diagnostic members only.
Log In Register

Capitalization of Overhead in Construction – Section 263(a)

Capitalization of Overhead

There are two exceptions allowed for small business residential contractors to escape the requirements of Section 263(a) - Capitalization of Overhead. The first is the $10,000,000 in sales per year threshold. The second exception is allowed for contractors that build residential homes and are able to complete the contract within two years.

This content is for Bronze, Silver, One-Time and Contractor's Diagnostic members only.
Log In Register

Occupancy Rate – How to Evaluate

Temporary housing includes hotels, motels, resorts, apartment complexes and rental homes.   The number one tool to measure performance is occupancy rate.   This is the number of nights the facility is occupied against total available nights. 

This content is for Bronze, Silver, One-Time and Contractor's Diagnostic members only.
Log In Register

P&L Statement – Best Format for Salons

P&L Statement - Best Format for Salons

An owner of a hair salon needs a well organized and properly formatted profit and loss statement (income statement) to properly evaluate performance.   There are multiple presentation formats used in the service industry, but after 25 years of accounting I advocate for the functional presentation arrangement.   This form of a profit and loss statement allows the owner to quickly and decisively determine performance throughout the entire operation.

This content is for Bronze, Silver, One-Time and Contractor's Diagnostic members only.
Log In Register
Follow by Email
Facebook
Google+
https://businessecon.org/category/performance-standards-in-various-industries">
Twitter
LinkedIn