Accounting in construction

To implement a successful management of a construction company, it is necessary to know exactly what and in what quantity it is necessary to produce, how much it costs to produce a construction object and so on. Together with this, for the optimal use of material, labor, monetary resources, it is necessary to measure, observe, record and control all the facts that occur in economic activities. This information more fully and authentically reflects the accounting in construction.

All business operations are seen in the financial statements, both quantitatively and qualitatively. Accounting in construction determines not only the volume of goods produced or services provided. Reporting reflects and received income, cost, distribution costs and other values.

In accordance with legislative norms, accounting in construction is an orderly structure for the registration, collection, consolidation of information in monetary terms. Reporting reflects the property condition, the obligations of the company and their direction through the documentary, continuous, continuous calculation of all transactions of an economic nature.

Accounting in construction involves the formation of reliable (complete and high-quality), as well as timely information that characterizes the economic and financial activities of the firm. This information is necessary and used by management personnel in the preparation, justification, as well as in decision-making.

It should be noted that accounting in construction has its own characteristics. These features distinguish it from other types of economic (tax, statistical, operational) reporting. So, the functions performed by accounting in construction are limited to a specific organization. Reporting reflects absolutely all the economic processes that occur in the firm, with each fact documented with the help of a primary document or a machine carrier that has a legal basis. Accounting differs in the continuity in the time of reflecting transactions that occur in the enterprise. All economic processes, obligations or property are expressed by a monetary indicator by generalizing natural values. All the facts that are happening are interdependent, and therefore there is a correlation of activity. In addition, accounting in a construction firm has its own special methods for data processing. These methods are not used in other costing methods or are rarely used.

Thus, this method of accounting allows to form indicators, according to which it is possible to draw conclusions about the size of property, capital, liabilities and their structure. The obtained data are indispensable in the implementation of forecasting and planning.

In accordance with the provisions of the current legislation, accounting should be conducted on all economic entities that have a legal status.

As the world practice shows, the reporting can change its form, content depending on changes in the social, political, economic state sector. At the same time, reporting in different countries has its own national characteristics, which have been formed over many centuries.

Today, the following main tasks of accounting in a construction company are singled out:

1. The formation of reliable information about the activities of the company.

2. Provide necessary data to external and internal users of reporting to ensure control over compliance with the state's legislative norms.

3. Prevention of negative consequences of the company's economic activities, as well as identification of on-farm resources to ensure the financial sustainability of the firm.