The basics of accounting for construction companies also include revenue recognition and cost allocation. On the balance sheet, CIP is presented as a non-current asset, typically within the Property, Plant, and Equipment (PP&E) section. It is distinctly identified as “under construction” or “not yet in service” to indicate its incomplete status. For example, when a company pays for materials, the … Read More

Each cell in the sales tax rates column inside the Monthly sheets is linked to this rates table using a drop-down selector. The main objective of the Cash Book is to put your income and expenses into manageable categories and summarize the totals of those categories. Create a summary of the daily cash book using the SUM function and Mathematical … Read More

For example, dividing the gross margin by revenue equals 0.5, which multiplied by 100 gives a 50% gross margin. It accounts for all the indirect costs that the gross margin ignores, as well as interest and tax expenses. This is why the net margin is considered the most comprehensive profitability metric and is very useful alongside gross margin when evaluating … Read More