Recognizing Revenue At The Right TimeShare
Keeping track of revenue isn’t always easy in the fast-paced construction business. As buildings are constructed over time and projects change frequently, it can be difficult to calculate a project’s percentage completed at the end of a period and the actual profit from the job. AGH discovered that one of our construction clients was calculating its year-end revenue by adjusting projects’ actual costs for customer change orders but not adjusting the revenue on their job schedules. As a result, profits seemed lower than they actually were, and the job schedules used to manage each project did not match the company financial statements. We helped the company devise a better way to track revenues and calculate profits, and with more accurate information, this company now is armed to make better decisions.
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