Accounting Standards Codification (ASC) 606- Revenue Recognition, among other things, changed the way we present financial statements....

Here's another way to calculate revenues earned using the percentage of completion method. Just thought I'd share. ***DISCLAIMER*** This...

So you've calculated work in progress (WIP) on open jobs but something seems off. You think to yourself, "there's no way I could be...

So you've calculated work in progress (WIP) on open jobs but something seems off. You think to yourself, "there's no way I could be...

You have a high overbilling on a project but it doesn't make sense. First, remember this! Actual Gross Profit* % > Estimated Gross Profit...

On to Scenario 4 or the "Going through the punch list” scenario. Keep your subsequent activity nearby for this scenario. In the example...

On to Scenario 3 or the "Really? Are you sure?" scenario. This scenario often results in significant changes to total estimated cost. In...

In this lesson we'll cover the second common scenario with underbillings, the "nothing to see here folks" scenario (2). Let's get to it!...

It's December X3 and you just started a new project. You’ve incurred (and recorded) costs on the project but didn’t get around to billing...

A question that always comes up is "How do I know if I'm calculating work in progress (WIP) correctly?" Unfortunately, we'll never really...

Two points I want to emphasize with completed contracts method of revenue recognition: Billings to date and cost to date on open projects...

I ordered some shirts with the Percent Complete logo! Who ever comments first below wins one!!! I haven't looked at international...

Unfortunately, not all projects make money. You've got delays, the project owner is throwing a fit, the site conditions are unruly, etc....

Yes, overbillings reduce revenue. Yes, overbillings are a liability. BUT, they're not bad once you understand them more. Brief overview...

Chances are you have unallocated job costs. Usually it's from repairs and maintenance on equipment or vehicles, fuel, insurance or...

It's recommended that you create three accounts to record your over/underbillings: Underbillings (Asset/Balance Sheet)- Current Asset...

If you haven't figured out the topic of this article, yet, I'll give you a hint, it's about working capital. What is working capital?...

It's January 2024 and you found a new CPA for your annual review for 2023. You hand the new CPA the 2022 year end review with financial...

There are many ways to calculate cash flows by project. I've seen some pretty complicated worksheets out there so I've put together a...

A lot of contractors recognize revenue after every billing. Meaning, the entire amount of that progress billing you just sent out for...