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.
A $750 Billion industry encompassing home construction to industrial development. The construction industry section of the website has over 50 articles related to proper administration and accounting for construction. Learn the nuances that create success in construction.
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.