Additionally, equipment and labor costs always have to be tracked to each job site with the varying wage rates.Ĭonstruction also works on long and seasonal production cycles. Equipment use and labor frequently move, which results in mobilization costs. Production happens on various job sites rather than set locations unline retail and manufacturing. Most importantly, construction companies have to control costs and bid rationally, and that is to track accurate costs for individual projects and job costs. Company’s profit margins determine the contractors’ livelihood so it’s essential to stay organized with bookkeeping. Depending on the job, the financial focus changes. Below are the variables.Ĭontractors operate their business primarily around projects with billing, production, or labor. Photo by ESB Professional on Shutterstock Why is Construction Bookkeeping different?Ĭonstruction contracting has several distinct factors that differ from other industries, like manufacturing or retail.
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