US Bureau of Labor Statistics show that as of January 2020, there were $7.59M people working in the construction industry. In addition, data from the Association of General Contractors of America shows that the construction industry has more than 600,000 employers in the US and creates nearly $1.3 trillion worth of structures each year.

With the continued resurgence of this industry, understanding how to do the accounting for these companies will be an invaluable skill. Therefore, this course will introduce the basic concepts surrounding construction accounting needed to do just that. We’ll cover a variety of topics aimed at familiarizing you with how to properly understand construction accounting.

Through the definition of useful terms and using relevant examples, we examine everything from paying subcontractors and billing clients to recognizing revenue and understanding project profitability.

Course Key Concepts: Construction Accounting, Project Accounting, Subcontractor, Prime Contractor, Work in Process.

Learning Objectives

  • Discover Construction Accounting.
  • Explore Project Costs.
  • Recognize Revenue Recognition for Construction Companies.
  • Explore Typical Contract Types Used in Construction.
  • Identify the Billing Process.
  • Discover how to Delve into ASC 606 – Revenue from Contracts with Customers.
  • Identify How to Measure Completion and Calculate Revenue Earned based on Completion.
  • Explore the Basics of Contract Assets and Contract Liabilities.
  • Identify the Components Impacting Project Profitability.
Last updated/reviewed: April 19, 2020

4 Reviews (19 ratings)Reviews

4
Anonymous Author
This is a good overview of issues specific to construction accounting. I would love to see more courses offered on this topic, particularly geared toward small business contractors.
4
Member's Profile
Good course and instructor however explanation of the A1A form would be more effective if larger and populated with figures.
5
Member's Profile
Great run down of the rev rec changes. Good use of clear, practical examples.
4
Anonymous Author
I would recommend to put on a slide all examples explained

Prerequisites

Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  2:12Introduction to Construction Accounting
  2:46Construction Accounting Defined
  6:02Understanding Project Costs
  8:44Billing
  14:01Revenue Recognition
  5:00Measuring and Calculating Completion
  3:33Contract Assets and Liabilities
  5:20Project Profitability
  2:12Conclusion
CONTINUOUS PLAY
  49:49Introduction to Construction Accounting
SUPPORTING MATERIAL
  PDFSlides: Introduction to Construction Accounting
  PDFIntroduction to Construction Accounting Glossary/ Index
REVIEW AND TEST
  quizREVIEW QUESTIONS:
 examFINAL EXAM: