The article argues that the work-in-progress (WIP) schedule — commonly used merely for revenue recognition — can be transformed into a strategic tool for contractors. Rather than a year-end formality, monthly WIP updates can gauge cash flow, estimate-to-complete accuracy, project health and bonding strength.
By Collin Temple, CPA, CCIFP In the world of construction accounting, the allocation of indirect costs, or overhead, continues to be one of the most consequential and misunderstood areas in both financial reporting and job costing. For CPAs working with contractors, a clear grasp of indirect cost allocation is not just a technical exercise but a strategic opportunity to enhance financial accuracy, improve competitiveness, and support better business decisions.
