How to Become a Construction Accountant Blueprints to Success

Columbia Engineering Executive Education is collaborating with online education provider Emeritus to offer executive education programs through a dynamic, interactive digital learning platform. These programs leverage Columbia Engineering Executive Education’s thought leadership in engineering practice developed over years of research, teaching, and practice. This course is designed for new Construction Finance Managers, Construction Project Managers, Project Accountants and leaders of construction firms who are non-financial managers. You don’t need to be a lawyer to read a contract (though you absolutely want one to), but you do need to understand what you are reading. You also need to understand the major differences between the AIA documents and the new Consensus DOCS.

Step 3: Gain Knowledge of the Construction Industry

If your business has any unique bookkeeping needs, you’ll want to look for a solution that caters to those needs as well. While there are many places where you can find a certified accountant, your best option is to browse the American Institute of Certified Public Accountants database. It lists thousands of licensed CPAs who can help with all your accounting needs. Additionally, while a non-certified accountant could handle some of your bookkeeping needs, you should focus on certified and licensed accountants to stay on the safe side.

How to choose the right construction bookkeeping software

As long as construction projects continue to be undertaken, there will be a need for accountants who specialize in this industry. As a Construction Accountant, you need to interact with a diverse range of people, including project managers, contractors, vendors, and other financial professionals. These subjects will help you understand how to keep track of a construction company’s expenses, make financial predictions, prepare financial reports, and ensure legal compliance. During your degree program, you may have the chance to take courses in subjects like cost accounting, auditing, taxation, business law and financial management. You would also handle tasks like job costing, progress billing, recording receipts and expenses, managing payroll, and other construction-specific financial tasks.

• “The Basics” Workshop begins with an overview of the construction industry, then moves from the contract life cycle to job costing issues to financial reporting concerns and beyond.
• To actually be effective, your cost coding system needs to be used consistently by everyone in your company.
• This complimentary tool is designed to provide tailored advice and resources to help you effectively navigate your career path.
• The Construction Finance Fundamentals course is part of 38 other courses in the Commercial Banking & Credit Analyst program.
• Also, invest time in learning new software tools and technologies relevant to construction accounting.
• These may include percentage-of-completion method, completed contract method, and other techniques used to recognize revenues and costs.

Understanding Retainage

• Reconciling your bank accounts protects you from costly errors, mistakes and even fraud.
• Therefore, you should hire an efficient outsourcing company and save your costs and time.
• In construction, this may include analyzing costs for materials, labor, and overhead, among others.
• While it is not the fanciest bookkeeping responsibility, it is one of the most important.
• Construction accounting and its lingo are the language of construction businesses.

Alternatively, you could start gaining practical experience in the field to complement your theoretical knowledge. The requirements for receiving CCIFP certification vary based on education level. You can now use this percentage to calculate the amount of revenue to recognize for a specific project milestone or pay period. Alternatively, you can take advantage of a dedicated bookkeeping software solution to manage your bookkeeping more easily. Construction bookkeeping is a crucial part of running a construction business.

Is Construction Accounting a stressful job?

Start by researching extensively about the role, responsibilities, and challenges faced by a construction accountant. You will be responsible for preparing regular financial How Construction Bookkeeping Services Can Streamline Your Projects reports, forecasting future costs, and advising on financial decisions related to the projects. Bridgit Bench is the #1 workforce planning software built for the construction industry. Our mission is simple — help contractors streamline operations and navigate workforce planning complexities.