In construction accounting, the percentage of completion method is the preferred tool to account for revenues and direct costs of construction. If you are an owner of a contracting business, this is the best method of accounting. Learn how percentage of completion method for accounting in construction is calculated and recorded in the financial books of record for construction. Find out the advantages of this method over the completed contract method of accounting in construction.
A second and easier method of accounting with project accounting (construction) is the completed contract method. This method does not utilize an engineering or detailed production schedule (chart) like the percentage of completion method. It […]