Billings in excess of costs is a financial accounting of project billings that are greater than the actual revenue earned from work performed on the job. This is a technique done by many contractors to cover costs during the course of a project. It also refers to the practice of sending an invoice to a client prior to the completion of a project. To help offset an inflated picture of revenue from overbilling, billings in excess of costs are recorded on a company balance sheet as a liability until the work for those billings is complete.
A GL insurance premium audit can be complex for construction companies. This guide outlines best practices, from managing vendors and segregating job costs to preparing financial records and understanding insurance policies, ensuring you stay compliant and avoid costly penalties.
Read MoreThe Construction Company Accountant plays a vital role in overseeing the financial health of construction projects, ensuring that costs are accounted for and reported accurately. They are key partners in ensuring that construction projects not only stay on track but also deliver on financial goals.
Read MoreCFMA's 2024 Financial Benchmarker shows the construction industry's strong performance in 2023 despite economic challenges. Companies achieved a 10.4% revenue increase and higher profitability, with net income before taxes at 6.3%. Top firms excelled in cost management and asset use, indicating areas for improvement industry-wide.
Read MoreCost 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.
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