Don't get too excited about your income statement if you have unadjusted WIP on your books at year end. WIP needs to be adjusted by year...

Time for a demonstration! Even if you're pretty familiar with how WIP works, it's always helpful to run different scenarios using the WIP...

So, you’ve decided to prepare a WIP schedule this year and to make all the necessary journal entries. That’s great! I typically see two...

The approach to recording billings and costs on small jobs is a bit of grey area. Some companies create separate project IDs for every...

I know there is software out there that allows you to create your chart of accounts without assigning numbers. That's great, but it's...

Get in the habit of generating a new trial balance every time you record a journal entry (or entries) to double check your work. Did you...

According to the completed contract method of revenue recognition, an entity recognizes revenue on a project when it's completed. So any...

Your CPA will always want to know which jobs were open at year end. Meaning, which jobs had costs to be incurred in a future period. So...

Here's how the process of issuing a review or compilation report with financial statements should look like: 1) Your CPA sends you a...

Whether you're making payments out of the company account to pay down a personal loan, or to pay for a subscription service for your...

Overbillings/Billings in excess of costs and estimated revenues/Contract Liabilities: Just because your billings are higher than your...

The term underbilled sounds simple enough. When you have more costs on a job than you have billings, there's an underbilling and the...

Unrecorded job costs can really mess with your financial statements and WIP report. I've chalked up an example to help demonstrate this...

It’s after year end and you’re patiently waiting for the most anticipated email of the year; the email from your CPA asking if your books...

What's considered a closed project can vary. Typically, when the project is substantially complete with all costs incurred, and no...

I've seen it done many times. Accountants progress billing without recording retainage. Why is this an issue? Two reasons: 1) You're...

We're all working with limited resources these days, however, that shouldn't limit your ability to manage your vendor list. Consider...

It's likely that you dispose of assets every year. Waiting until year end to adjust the gain-loss on disposals could skew your financials...

So you're on completed contract basis looking to convert to percentage of completion for your compilation, review, or audit. There's a...

It's very likely you have outstanding long-term debt that spans across multiple years. A portion of that debt is due within 12 months (or...