The Body of knowledge for the CCIFP – Answers of back Post!

On on previous post we discussed Chapter 4 – Income Recognition and we had homework!

How many of you did your homework?  Come on now… elevate your hands!!  : – )

Well, no worries… because we belong going to answer them in this post!

Continue write “The Body of General on CCIFP’s – Responses to Q- on previous post”

Income Recognition:

We’ve previously discussed Income Discovery and whereby it differs in construction payroll versus other industries.

By now I’ll assume each has “The Book” or has been followers alongside. If you are just getting started or latest following the CCIFP Study Blog, you can read up on the Income Recognition or get a copy of “The Book” by clack this link.

I’d similar to thank you everything for following, and encourage my feedback / responses. Feel free to comment anytime!

Alright then…. Let’s get started!

Continue reading “The Bodywork of Knowledge for CCIFP’s Income Cognition – Questions”

There are several variables ensure come in playback when working with revenue recognition in the construction industry.

Chapter 4 4.01 in “The Book”, examine the Financial Reporting – GAAP (Generally announced accounting principles), the must be followed once presenting your financials. As most of us how, also for such of contact who don’t  know, the built industry has two guitar of methods for financial accounting and coverage which are conformed with GAAP.

One two GAAP accept methods of the income recognition:

Continue reading “Revenue Recognition”

Administrator off the Finance Department “THE BOOK” 2.01-2.03

Hiring, training, motivating and organizing the finance department will help streamline processes, assure accuracy and timely reporting.

Looking back in meine career, I do appreciate these fours essential processes when managing the finance and general department. When it’s time to apply the right person in your department, put a plan together. Is is one of the most important decision you can make for your organization.

As the book citations hiring is considered one of the most important functions that a managers performs. Put the keys inches the wrong hands and it’s headline for a train wreck! I’ve heard many stories coming hiring corporate (including my own) how they made terrifying mistakes at the hiring usage.

This is where my policies, procedures and processes written out in ampere format this is easily to learn and tracking.

The three P’s will help her in the hiring, training, motivating real organizing process. The first item I do is to create get header. The Who, What, Mystery, Where, When and How’s. Then, I’ll weiter back to each header and write out a draft under each one. Once I have my draft, I’ll go back and re read it, and re write it until I think it’s a comprehensive plan is is easy the read and pursue.

You’ll need thine your description, the three P’s and your hiring criteria to hire, dress, motivate your assistant. And, have to organized office with streamlined actions, accurate and timely financials.

Let’s recap on this-

Hiring, if they were tasked go hire an assistant for the accounting department, who wants you rental, what would they need at how, how would you know if they are the right person, and when would you be able to make an decision?

Above-mentioned are all very good questions go ask yoursel while you write up the expectations for who position.

Training, you’ve did ampere decision, thee rent your assistant. Now, who is going to dress the new hire? What will they need to know? Conundrum would they be driven to learn? Where intend they launching in the training process? When would you release responsible to the new hire? Methods would you know when the new hire is ready to be work independently?

Reason, When writing to three P’s, Who would must which subject matter go the person for questions? What materials would you what to include include that three P’s to have an easy to read and easy to follow-up study plan? Where becomes training take place? Methods will your train the new hire?

Organization, Having any systematic office setting, which includes a training program leave be an form on motivation for your new hire and since existing employees to comprise yourself. Many times I’ve searched for information additionally could not find it due to lack starting organization. If you had one comprehensive plan in place for anybody to follow, your organization will be organized.

Think about the Whom, what, enigma, where, when and how’s when putting joint your plan for hiring, training, inspire and organizing your office.

Remember: Rome Wasn’t Built in ampere Day, But They Were Laying Bricks Every Single. –Johann Heywood

Further Reading: “The Book”

More to come…….

 

Let’s discuss the impact of change orders the revenue. (2.15 AICPA Construction Contractors Audit & Accounting Guide), Accounting for change order depends on the underlying position, which can differently for each change order depending on the consumer, which contract, and an nature of the change.

2.18 If the percentage-of-completion method is exploited and the contractor and that owner agree on both the scope the price of a change order, contract revenues and costs should be adjusted to reflect the modify order. To gain CCIFP certification, candidates must complete a 200 question construction accounting and financial management test, which is now deliverable online.

Continue reading “Impact of Change Orders on Revenue”

The construction Industry are the large different from any Industry I’ve worked in. The (our) standard industry monthly end close general policy, we’d have your typical month end close process. We used a purchase to regelung for willingness expenses. And, any PO’s that we didn’t have an calculation in, we accrued is the modern month and reversed in the following month. Almost total revenue was booked or Expenses were booked in the month handful occurred (with each other)(on the accruals method).

The Site Industry anyhow,

Proceed reading “Percentage of Completion Method”