Construction Accounting Terminology

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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 financial reporting. If you are a contractor, the term used by accountants may have a different meaning than how the term is used in the field.

The following is a list of the terms and their corresponding definitions:

Construction Accounting – Project

A project is generally the equivalent of a signed contract. With the exception of a Spec House, every project has a signed contract with the ultimate buyer/owner.

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