![]() Regular Accounting: What’s the Difference? The practice of job costing helps businesses estimate and analyze costs and revenue for each project, keeping projects on track and profitable. Much of the work of construction accountants is involved with tracking the individual projects that make up most contractors’ workloads. How to Account for ConstructionĪs in other industries, construction accountants perform critical activities to manage the company’s finances, such as recording transactions, managing cash flow and analyzing profitability. ![]() But despite being built on standard accounting principles, construction accounting is a specialized discipline because of the unique way construction companies operate.Ĭonstruction accountants focus on managing the cost and profitability of large, individual projects versus product lines, for example, while helping their firms manage industry practices such as retainage, specialized billing and revenue recognition methods and tracking frequent change orders.īecause construction accounting involves specialized concepts, it typically requires specialized accounting skills. East, Nordics and Other Regions (opens in new tab)Įfficient and accurate accounting is as vital to success in construction as in any other industry. ![]()
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