Construction comes with a set of unique challenges that make accounting difficult. Regularly revisit your forecasts and adjust them based on actual costs incurred as the project progresses. Construction payroll deals with complexities that other industries don’t normally have to worry about, like prevailing wage, union payroll, and multi-state-multi-city payroll requirements. In accrual accounting, you … Continue reading Introduction to Construction Accounting →

This means bills will be based on the percentage of a project that’s been completed. If you’ve completed 10% of the project in the last quarter, you’ll get 10% of the agreed funds. Check out this related article on using construction codes to help manage costs. Received a CP2100A Notice from the IRS? Time Is … Continue reading Construction Accounting 101: A Guide for Contractors →

When you enter any forecast activity, the double-entry process is completed for you, saving you time and giving you confidence in the numbers. To pay the rent, I’ve used cash, so my bank account (an asset account) is credited by £2000. With the outstanding bill paid, accounts payable account is debited by £700, reducing its … Continue reading T Account Examples Step by Step Guide to T-Accounts with Examples →

Doing so allows you to easily retrieve any document whenever you need it, save time and effort searching through paper files, and ensure that all your records are up-to-date and accurate. Using software and tools can help construction companies streamline their bookkeeping process and improve efficiency. There are many software options available that are specifically … Continue reading Construction Bookkeeping Tips to Maximize Contractor Success →