INBOOKS · PRACTICAL GUIDANCE
Accounting for Construction
Organise the accounts by project and contract milestone, with separate visibility over certified amounts, invoicing, collections and retention. Agree the accounting approach for work in progress with the appropriate reviewer instead of deriving revenue solely from bank receipts.
Records and controls to prioritize
- Contracts, variations and approved milestone evidence
- Project purchase orders, supplier bills and subcontractor certificates
- Retention, advance and customer-balance schedules
- Project-cost coding and period-end work-in-progress review
Practical questions
Why keep retention separate from overdue invoices?
Retention may follow different contractual release conditions. A separate schedule helps distinguish contractual timing from collection problems.
What evidence supports a variation?
Keep the change request, approval, scope and value together, then link the approved variation to project reporting and billing.
Scope the work around your operations
Describe the channels, entities, accounting system and periods involved. Agree the review and reporting scope before work starts.
Discuss your business →