Tag: Project Accounting
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The Future of Construction Payment Is Technology-Enabled Collaboration
After talking to literally thousands of GC’s, subs, and suppliers, we’ve seen that many project issues arise because of distrust that’s caused by a lack of visibility and collaboration. To illustrate this point, let’s consider a typical project where a GC withholds payment to a sub (or multiple subs). There are many possible justifications the GC…
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Construction Payment Technology Can Present Difficulties to Set Accounting Procedures
It’s no secret that the construction industry faces difficulties in payment and associated problems related to cash-flow management. Because of these difficulties, it’s usually important for a construction company accountant (or the person wearing the cash-management hat) to be exceptionally organized and follow set procedures, even if those procedures are sometimes pushed aside. The business…
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A Day in the Life of a Construction Accountant
Often accountants will take on many important administrative tasks in addition to their accounting work. Therefore, they tend to wear many hats around the office. Some may include stocking the company kitchen with goodies for employees to enjoy throughout their work day or scheduling team bonding events around the office. Within the construction industry, another…
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The Accountant’s Guide to Lien Waivers
Construction accounting has a peculiar challenge: lien waivers. Learn why accountants must deal with this, how they make mistakes, and best practices. Lien waivers are – in a sense – nuanced legal documents, yet in nearly every construction organization across the United States lien waiver documents are exchanged between the organizations’ financial professionals. The truth…
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Construction Accounting: What Is a Work in Progress Schedule?
The Work In Progress (WIP) schedule is an accounting schedule that’s a component of a company’s balance sheet. It’s calculated for each accounting period, and required (according to GaaP principles) on projects where the Percentage of Completion (POC) accounting method is used (link to POC article is below). Though the format of the WIP will…