What is Job Costing and Work-in-Process Accounting?
Did you know that Check & Balance Solutions specializes in construction based business finances? Although we do offer services to all small business, our CEO Donna Sovie, spent15+ years in the industry, eventually becoming a controller of a multi-million dollar construction company. In this blog we discuss exactly what is Job Costing and Work-In-Progress Accounting.
Job costing is an accounting method of tracking all the costs and revenue associated with a unique project. Process costing is an accounting method deployed when there is mass production of similar products by collecting and assigning manufacturing costs to the units produced. Customized.
Work in process (WIP) inventory refers to the total cost of unfinished goods currently in the production process at the end of each accounting period. It is also considered a current asset on a company's balance sheet. While most business will use WIP, the construction field has a unique plethora of materials and sub-contractors.
As a construction or service-based business owner, you have very specific processes and requirements to follow. You need an expert who understands how your business and industry works. Our outsourced accounting services will help you to be more profitable and compliant through:
A review of your construction or service industry job costing system.
Improvement/development of the process so you can track the progress of your projects in real-time.
Maintenance of your job costing system.
Work-in-process reports to improve the accuracy of your accounting records by recognizing expenses and revenue within the month in which the work was performed.
If you have questions about job costing or work-in-progress accounting, and the bookkeeping has become too much for you to manage on your own, contact Check & Balance today by scheduling a free consultation! We’ll be happy to ensure your records are always accurate.