Implement Cost Accounting in Construction – Document Flow System
Minimum Bottom Line Profit Should Average 9.4%!
For Trades & Subcontractors, at Least 11%
After Income Taxes Are Paid!
This is the second article in a series of articles walking the small business contractor step by step in implementing cost accounting in construction. This article focuses on designing and developing a document flow system for use in cost accounting. The next step after creating a document flow system is learning how to sort and process the documents that come into the office. Finally, the last set of articles in this series helps the accountant/bookkeeper choose the best accounting software to match the business operations and illustrates the different types of reports you’ll need for information and how to interpret the reports.
Document Flow System
A document flow system in construction provides many benefits. If well designed and implemented it reduces office stress, minimizes labor resource consumption, and makes it easy for the owner to retrieve needed documents. The whole system is