Question 1

What is the overview of construction accounting?

Accepted Answer

Construction accounting involves tracking costs and revenue, and managing industry practices like retainage, specialized billing, and revenue recognition, ensuring financial data reflects the project’s progress and requirements.

Question 2

What is the formula for construction accounting?

Accepted Answer

The construction accounting formula is as follows: Revenue to date = % of completion * contract value. Cost to date = costs from the previous year + costs incurred in the current period. % complete = cost to date / total estimated costs.

Question 3

How to do construction accounting?

Accepted Answer

Construction accounting involves tracking project costs and revenue, and applying industry-specific methods like job costing, work-in-progress, and progress billing to ensure financial accuracy and compliance.

Question 4

Where can I learn construction accounting?

Accepted Answer

You can learn construction accounting through the PW Skills Certification Program in Finance, Tax, and Accounting (CPFTA), which covers essential accounting, tax & finance concepts.