If you’re in the construction industry, you know that accounting and financial management can be more complex than in other industries. In this guide, we’ll review construction accounting processes and how they differ from standard accounting processes. You’ll also read about specific elements of construction accounting that are unique to the industry and how construction accounting software can empower construction firms to manage their finances more effectively.

KEY ASPECTS OF CONSTRUCTION ACCOUNTING THAT MAKE IT UNIQUE

  1. Job Costing
  2. Sales and Costs of Sales Categories (diret / indirect / committed)
  3. Revenue Recognition (5 steps to recognize revenue, cash / accrual / percentage of completion method, ASC 606 standards)
  4. Mobile Workforce
  5. Payroll Requirements (prevailing wage, union and multi-level payroll)
  6. Retainage