Category: Construction Accounting Basics
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Cash Basis vs. Accrual Accounting for Builders: Which One Should You Use?
Construction Accounting Basics Your P&L says you made $180,000 this year. Your bank account doesn’t agree. If you’ve ever stared at those two numbers wondering which one is lying to you, the answer isn’t a bookkeeping error — it’s the accounting method behind them. Cash basis and accrual basis tell two different stories about the…
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Job Costing 101: How to Know Which Jobs Are Actually Profitable
Construction Accounting Basics Ask most builders which job made the most money last year, and you’ll get a guess based on gut feel — not a number pulled from the books. That gap is job costing, and it’s the difference between running a business that happens to be profitable and one that knows exactly why.…
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What Is a WIP Schedule — and Why Every Custom Builder Needs One
Construction Accounting Basics If you’ve ever handed your bank a financial statement and gotten a follow-up question you couldn’t quite answer, there’s a good chance the missing piece was a WIP schedule. A work-in-progress (WIP) schedule is the single report that tells you — and anyone else looking at your business — whether your open…