WIP (work-in-progress) is a report that tracks the progress and financial performance of active jobs. It assesses if a task is overbilled or underbilled in relation to its progress, in addition to looking at the percentage of completion and the cost to complete. Companies incorporate a WIP schedule with their financial statements when employing the percentage-of-completion technique for revenue recognition.
Cost codes are vital for accurate job costing in construction. This guide covers their importance, how to set them up in QuickBooks Online, and best practices for improved budgeting, financial reporting, and cost control, ensuring better project outcomes.
Read MoreIn the fast-paced world of construction, managing finances can be especially challenging due to the complexity of long-term projects, multiple job sites, and changing contracts. Construction companies must adopt construction accounting software that complies with Generally Accepted Accounting Principles (GAAP).
Read MoreBehind every successful project is a construction accountant, working diligently to ensure that the financial foundation is as strong as the physical structures being built. Their role, often behind the scenes, is crucial in maintaining financial stability despite the industry's complexities.
Read MoreThis guide helps construction companies navigate 1099 reporting, covering IRS mandates, vendor classification, and the use of third-party software to streamline the process. Learn how to stay compliant, manage subcontractors effectively, and avoid costly penalties.
Read More
