construction bookkeeping

What Are Financial Statements? Financial statements are formal records that document a company’s financial activities. They serve as crucial tools for assessing a company’s financial health and performance. These statements are often subjected to audits by government agencies and professional accountants to ensure accuracy, compliance, and transparency. Financial statements are essential for various purposes, including […]

Understanding Project Budgets A project budget encapsulates the anticipated expenses required to execute a project within a specified timeframe. It serves as an estimation tool for forecasting the expenditures across each phase of the project. Developing a project budget constitutes a pivotal aspect of project planning. Comprising elements such as labor expenses, material acquisitions, and

This guide explores AIA invoicing, a standardized method commonly used in commercial construction projects across the United States. What is AIA Invoicing? AIA invoicing is based on the AIA Document G702 Application for Payment and its companion G703 Continuation Sheet. These forms provide a structured approach to invoicing for construction projects. While originally introduced by

Understanding Labor Expenses: Definition and Importance The labor expense refers to the total expenditure incurred by a company on its workforce, encompassing wages, employee benefits, and payroll taxes. It is a crucial component of overall operational costs and is typically divided into direct and indirect expenses. Direct labor costs pertain to wages paid to employees

What Does a Cash Flow Statement (CFS) Mean? A cash flow statement (CFS) keeps tabs on cash coming in and going out, offering a glimpse into a company’s financial well-being and how smoothly it runs its operations. It assesses how effectively a company handles its cash reserves, which entails its ability to generate cash for