construction accounting

Construction accounting is a specialized financial method focused on managing the finances of construction projects. It involves tracking costs, revenues, and budgets to ensure projects are profitable and completed on time. Key elements include job costing, where expenses are linked to specific projects, change orders for adjustments, and progress billing for work completed. This type of accounting addresses unique challenges in the construction industry, such as fluctuating costs, subcontractor payments, and regulatory compliance, allowing companies to maintain financial control and make informed decisions throughout the project lifecycle.