How to Create a Construction Accounting Document in Google Docs?
One of the major challenges of the construction industry involves cost and financing, according to Deloitte. Hence, to ensure healthy cash flow in every construction company, proper accounting documentation is needed. To help you come up with a well-detailed one, read the well-researched guide tips that we have listed down below.
1. Know What you Need
Construction accounting documents come in different kinds of sorts. From contractor estimates to construction balance sheets, your choices are endless. So for your first step, know what type of document you have to work on. This will act as your guide for the succeeding steps.
2. Conduct Research
Construction accounting documents mostly entail critical pieces of information. And if you want to make them functional and more detailed, you have to allot time with your thorough research. For instance, if it's an account receivable document you're creating on, then it would be best if you'll take reference from construction invoices or other related documents.
3. Construct its Framework
By now, you should focus on visualizing the look for your construction accounting document. Instead of creating it directly in Microsoft Excel, it would be best if you put it in a draft. With the help of your gathered data, strategize an effective framework for the document. Be sure to finalize it because this will serve as your reference in wrapping up your construction document-making.
4. Be Consistent
Consistency is the most important element that should be present in your document. To attain this, make sure that there are balance and accuracy in presenting its details. This step particularly applies not just with creating construction accounting documents but also when it comes to creating construction project management reports.
5. Integrate Branding
To wrap up everything, it would be strategic on your part if you integrate your business logo in the document. Place it in either the top center of the document to make it noticeable. As much as possible, try to make it engaging and relate it to the business.
What is Construction Accounting?
Construction accounting is a form of financial management that helps contractors keep track of the total cost needed to complete a construction project. These costs are mostly comprised of materials and labor and other related additional charges.
What is Construction Job Costing?
Construction job costing is a method used to break down the entire project cost into smaller details. This is done to be able to keep track of the expenses required in the different areas of the project. Job costing helps business owners identify what particular project is profitable and which isn't.
What are the different Construction Accounting Methods?
There are four different construction accounting methods for contractors: 1) cash method, 2) accrual method, 3) completed contract method & 4) percentage of completion method.
What is the difference between Construction Accounting & Regular Accounting?
Construction Accounting tracks the total costs required to complete a certain project. On the other hand, regular accounting is basically about financial reports and tax returns.
What are the best accounting software programs for construction businesses?
Some of the well-recommended accounting software programs for running construction businesses are the ff:
1. Jonas Construction Software
2. QuickMeasure OnScreen
3. B2W Estimate
4. WinEx Master