A job schedule—also known as work-in-progress or WIP schedule—is a subsidiary ledger that tracks actual costs and billings per project. Ideally, your job schedule should be updated and reconciled with the general ledger at least once a month. But in the fast-paced contracting world, it can be tempting to fall behind on these tasks. Unfortunately, […]
Capital Lease or Operating Lease? 4 Questions to Ask
By Stephanie Loiland, CPA Many companies choose to lease assets for a period of time instead of buying them outright. If you’re in this situation, it’s important to know whether you’re dealing with a capital lease or an operating lease. That’s because the type of lease will affect how you record it—and the payments you […]
Top 5 Ways the New Revenue Recognition Standard Will Impact the Construction Industry
By Kyla Hansen, CPA There’s been a lot of talk about the new revenue recognition standard and the effect it could have on the construction industry. Although the standard, known as Accounting Standards Update (ASU) 2014-09, was first issued by the Financial Accounting Standards Board (FASB) in 2014, it goes into effect for privately held […]
How Indirect Construction Costs Can Impact Your Profitability
By Joy McAdoo, CPA Keeping tabs on direct construction costs for a project is pretty straightforward. Take your materials costs, for instance: X number of beams used on the project multiplied by cost of each beam = total cost. Easy! Dealing with indirect construction costs, however, can be another story. Indirect costs relate to […]