Job Cost Reports – Balance Sheet Set

Minimum Bottom Line Profit Should Average 9.4%!
For Trades & Subcontractors, at Least 11%
After Income Taxes Are Paid!

Construction accounting uses job cost reports to inform management of progress and existing issues with projects. There are several different sets of reports. The balance sheet set functions as an overall financial picture for the company. The balance sheet set informs us of four overall monetary pieces of information:

  1. It basically identifies how much is owed to the company for completed work to date, AND
  2. How much is invested into the respective ongoing projects, AND
  3. How much is owed to suppliers and subcontractors, AND FINALLY
  4. The total amount progress billed to date for active projects.

As the owner or controller for a small construction business the real key to success is your ability to evaluate these four valuable monetary positions quickly and easily. This article will educate you with understanding all four positions. In addition, I plan to illustrate the financial flow of construction and end by guiding you through the various analyses of the relationships of all four key pieces of information.

I will use examples and illustrations. 

Although this appears a bit complicated, I’ll reassure you it isn’t; it is simply a matter of acquiring some knowledge and understanding the relationships that exist among these reports. I’m here to help. If you want me to review your operation, current reports and design reports to suit your needs, contact me at dave@businessecon.org. My fees are reasonable and I’m responsive. You will be surprised by the outcomes and feel that you have control over your destiny.

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