Tag: Project Accounting
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Construction Accounting: What Is a Schedule of Values?
A Schedule of Values is an essential tool used in construction project accounting that represents a start-to-finish list of work items on a project with corresponding values that represent the entire contract price. The article includes a free Schedule of Values Excel template download.
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Pay Apps: A Simple Overview – Common Forms and Parts
Generally, the pay app provides an accounting of the work/materials/product furnished through a certain time under the contract and any change orders, along with their price and quantity – and subtracts retainage and the amount previously paid to determine the amount due. Supporting and/or additional information is usually required to be provided as well. While…
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Common Pitfalls in Construction Project Accounting
Contractors can take on a job after decent planning and enthusiasm, only to wonder what happened when they see a tiny profit or worse at the end of the project. Sometimes the reasons are elusive, but several of them show up in the post mortem time and time again. Below are some issues not immediately obvious…
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Top 3 Causes of Hidden Losses for Contractors on Construction Projects
The construction industry operates on such razor-thin margins that the slightest issue or problem on a job can be the difference between making money and losing money. The construction industry is also very complicated, and this complexity allows problems to be “hidden” or buried in the everyday operations of an already complicated business with a…
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You Know What Is Expensive? Bad Debt
To illustrate how tight margins make bad debt even more expensive, we have actual data on bad debt losses from 7 new zlien customers. Each of these customers signed up with us in 2017, and each of them had recently written off a bad debt from a non-paying customer before they signed with us. We’re not…