The Work In Progress (WIP) schedule is an accounting schedule that’s a component of a company’s balance sheet. I am reviewing a schedule of value for a project that does not have a % of the project total assigned to project closeout. I have heard the industry standard is 10% of the overall project is given to project closeout.
This can be a benefit for the company, but it certainly makes arranging contracts complex. Typically in industries or other business areas, traditional records are expenses, revenues, profits, etc. Construction projects are usually won and allocated through the bidding process, where companies compete with each other to provide high-quality bookkeeping austin services at reasonable prices. It is independent of other projects in the same company, so the same share of expenses, revenues and profits cannot be recorded in the records. That means the company may improve its logistic services a lot as it will transfer equipment and machinery to more than one location and by more than one carrier.
Track many things with bookkeeping
Heather N. Sellers, CPA/CFE/CFF, is a partner at GMP, having worked in accounting for more than 15 years. She has extensive experience in the construction industry, in both accounting and tax matters. She’s also a member of the Construction Financial Management Association (CFMA) and the Construction Industry CPAs and Consultants Association (CICPAC).
Bryce Stewart CPA is more than a construction accountant—they’re a business advisor too. That’s because they understand that implementing and maintaining good, thorough financial practices is the backbone to any construction company. Maintaining tidy and accurate financial books in good records helps eliminate errors that can be costly to businesses. It also helps protect the company from potential accounting audits and checks to ensure sound financial practices are in place and followed.
Construction Industry Resources
Construction accountants not only keep track of each transaction and compile reports on a project-to-project basis. They can also use their knowledge of the construction industry to help put your business on an upward financial trajectory. The work of the bookkeeping team in construction companies is different from the rest of the other companies. Construction and contracting businesses usually do retail jobs or manufacture products only in very few cases, which may affect the financial book records. For contractors, using a construction accountant allows you to focus on what you do best. An accountant or bookkeeper with construction industry knowledge can take over the burden of monitoring your company’s finances as closely.
Bryce Stewart has been helping construction companies achieve their financial goals for the past 6 years. CICPAC members are dedicated to bringing the latest resources to our construction industry friends. Check out our published resources below by clicking on the image, by visiting our Construction Industry Resources page for a detailed description of each publication, and/or locate your local member firm for further guidance.
Bookkeeping Guides
In that case, it may lose bids—or worse, win a bid only to find that the requirements are much more expensive than what you pay for. Supporting Strategies provides outsourced bookkeeping services, controller services and operational support to growing businesses. Whether you hire an outside accountant or you do the work yourself, organization and accuracy is important. Whoever is managing your books, generating financial reports, and keeping your cash flowing should understand the best practices for construction accounting. They provide the construction accounting services that Houston contractors need for growth.
