Construction accounting is a form of project accounting applied to construction projects. See also production accounting. Construction accounting is a vitally necessary form of accounting, especially when multiple contracts come into play. The construction field uses many terms not used in other forms of accounting, such as draw and progress billing. Construction accounting may also need to account for vehicles and equipment, which may or may not be owned by the company as a fixed asset. Construction accounting requires invoicing and vendor payment, more or less as to the amount of business done.
In the United States, the authoritative literature on Construction accounting is AICPA Statement of Position SOP 81-1 (SOP 81-1).
Read more about Construction Accounting: Construction Costs, Revenue Recognition
Famous quotes containing the words construction and/or accounting:
“There’s no art
To find the mind’s construction in the face:
He was a gentleman on whom I built
An absolute trust.”
—William Shakespeare (1564–1616)
“At the crash of economic collapse of which the rumblings can already be heard, the sleeping soldiers of the proletariat will awake as at the fanfare of the Last Judgment and the corpses of the victims of the struggle will arise and demand an accounting from those who are loaded down with curses.”
—Karl Liebknecht (1871–1919)