To successfully manage a construction company, you need to know exactly what and how much should be produced, how much it costs to manufacture a construction project, and more. Along with this, for the optimal use of material, labor, financial resources, it is necessary to measure, observe, register and control all the facts that take place in economic activity. This information more fully and reliably reflects accounting in construction.
The reporting shows all business transactions, both quantitatively and qualitatively. Accounting in construction determines not only the volume of goods produced or services rendered. Reporting reflects the income received, cost, distribution costs and other values.
In accordance with legislative norms, accounting in construction is an orderly structure for registration, collection, generalization of information in monetary terms. Reporting reflects the property status, obligations of the company and their direction with the help of documentary, continuous, continuous calculation of all operations 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 company. This information is necessary and is used by management personnel in the preparation, justification, and also when making decisions.
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 that accounting in construction performs are limited by the framework of a certain organization. Reporting reflects absolutely all the business processes that occur in the company, with each fact being documented using the primary document or a machine carrier that has a legal basis. Accounting differs in the continuity in time of reflection of operations taking place in the enterprise. All business processes, liabilities or property is expressed in terms of money by summarizing the physical values. All occurring facts are interdependent, in connection with which there is an interconnectedness of reflection of activity. In addition, accounting in a construction company has its own special data processing methods. These methods are not used in other types of costing or are rarely used.
Thus, this method of accounting allows you to generate indicators in accordance with which you can draw conclusions about the amount of property, capital, liabilities and their structure. The data obtained are indispensable in the implementation of forecasting and planning.
In accordance with the provisions in the current legislation, accounting should be kept at all business entities that have legal status.
As world practice shows, reporting can change its form and content depending on changes in the social, political, economic public sector. Moreover, reporting in different countries has its own national characteristics that have been formed over many centuries.
Today, the following main tasks of accounting in a construction company are distinguished:
1. The formation of reliable information about the activities of the company.
2. Providing the necessary data to external and internal users of reporting to ensure control over compliance with the state legislative norms.
3. Prevention of the negative consequences of the economic activity of the company, as well as the identification of internal resources to ensure the financial stability of the company.