Article background Direct cost is comparatively easier to track and manage when it comes to construction accounting. However, it’s an indirect cost or overhead that’s highly challenging to be managed. And if this cost is not controlled/managed, it can lead to impaired financial reporting and decision making. In this article, we endeavor to understand the…
Article background Being construction professional, you understand challenges of this industry are not confined to onsite working but backup support like bookkeeping/accounting are equally challenging. Hence, there is a need to ensure you handover the task to not only competent but experienced and specialized construction bookkeeper. During my ten years of this industry experience, I’ve…
Article background As an ACCA-qualified accountant specializing in the construction industry, I’ve worked with hundreds of general contractors and I am capable of witnessing how poor books can derail even the smartest contractor. Based on my experience, here are actionable and tested bookkeeping strategies to keep your books organized, compliant, and updated all the time….
Article background I usually come across messy accounting books for construction businesses. Most of the times, it’s a case when books are managed by pre-mature bookkeeper with limited or no understanding about construction specific tools and techniques. So, I thought to compile a list of common mistakes made by generic accountants. Introduction Construction is extremely…
Article background In line with my construction accounting experience, construction entrepreneurs truly fear when talking about retention accounting. It’s a concept that creates fear and headaches among construction professionals. So, I decided to explain the concept in easy words and tone. So, you really don’t make a mistake when it comes to recording and tracking…
Cost plus construction contract can be defined in any of the following ways. Let’s discuss the situations when it’s a good idea to use a cost-plus contract. Situations when cost plus contract is a blessing You may like – QuickBooks for General Contractors! Types of cost-plus contract Broadly, there are two types of cost-plus contracts,…
In my 7 years of close cooperation with general contractors, developers, and real estate professionals, I have seen various accounting books where users were not able to properly interact with the accounting software. So, it was not like they didn’t know accounting or had issues understanding the transaction’s nature but their selection of the accounting…
VAT return filing needs to be timely and accurate. Small businesses and entrepreneurs often face challenges in terms of delayed filing, penalties, and errors. The following tips can be helpful in terms of filing the correct VAT return. 1-Understand the VAT system/return It’s important to understand the following aspects of VAT return. 1-VAT return summarizes…
Forensic audit refers to the examination of financial records and other company data to gather legal evidence for court purposes. This audit aims to investigate the financial crime and present your findings to the court of law. How does forensic audit work? Let’s have a detailed understanding in terms of working mechanics, The first step…
Highly efficient internal controls indicate a strong control environment and management’s commitment to risk management. Hence, efficient internal controls are expected to reduce audit risk, reduce audit procedures, and requires less time to execute the audit function. Conceptual understanding As part of preliminary audit procedures, the auditors assess the risk of material misstatement and the…