Master Construction Accounting and Reporting

Construction accounting requires a different approach than regular accounting. The very nature of the construction industry requires us to shift paradigms.

We'll go over some best practices for setting up the chart of accounts for construction companies.

This is the heart of construction accounting. It is critical we control construction project costs if we intend to stay in operation.

Construction involves all sorts of costs. But, they can usually be boiled down to five major cost categories.

Cost codes are the most granular costs involved with construction projects. We'll discuss how to use them in the accounting process.

The Work Breakdown Structure is where Project Management and Accounting comes together.

Construction is always unpredictable. Change orders allow us to at least keep track of the changing nature of construction projects.

When change orders take place, they impact the construction project's revenue and costs. This is how we can track them.

Like job costing and change orders, retainage is one of those unique factors of the construction industry.

We'll discuss the basic debits and credits of recording retainage.

We'll take a look at some of the major methods of contract billing in construction.

Time and Material is a popular billing method. We'll take a look and see how it works.

There are times when cost-plus billing is better. And there are times when time and material billing is beter.

AIA-style billing is the preferred billing format in the construction industry.

The unique nature of the construction industry requires us to track revenue differently. The WIP report helps us do that.

We'll take a look at a sample construction project and see how it works into the WIP report.

After the WIP report, the job profitability report is probably the most important report in construction accounting.