Financial Reports for Construction Bookkeeping

Every industry has its unique needs and distinctions when it comes to finances and bookkeeping. In construction bookkeeping, certain financial statements only exist for construction. These statements provide stakeholders with accurate, relevant, and actionable financial data.

Work-in-Progress (WIP) Schedule

Since there are many ongoing projects in the construction industry, the Work-in-Progress (WIP) Schedule provides projected total cost, costs incurred to date, billed revenue, and recognized revenue. This report is an aid in guiding financial decision-making for ongoing projects.

Construction-in-Progress (CIP) Report

The Construction-in-Progress (CIP) Report is designed to track financial data for projects that have commenced but are yet to be completed. The CIP report includes a detailed account of ongoing costs, including labor, materials, and overhead. It also shows data on cumulative revenues based on the percentage-of-completion or other recognition methods.

Job Cost Sheets

This report includes a breakdown of individual job costs, from materials to subcontractor fees and ongoing comparison of actual costs against budgeted amounts, making project planning more efficient and successful.

Profit and loss (p&l) statement and balance sheet

  • Profit and Loss (P&L) Statement: This statement will show a project’s revenues and expenses, giving stakeholders insights into the project's profitability.

  • Balance Sheet: The construction industry balance sheet reflects assets and liabilities unique to the sector, including retentions, advances, construction equipment, and project-specific financing. If kept up-to-date, it offers a holistic view of a company's financial position.

In construction, these specialized financial statements play an important role. If you need to outsource your construction bookkeeping, you can start by getting a free estimate!

ConstructionLindsey Sryockconstruction bookkeeping, bookkeeping, financial statements, WIP, CIPComment