Two Methods for Recognizing Revenue in Construction
Revenue Recognition, ASC 606, and Cabbage for Sage 300 Construction . The construction industry is a diverse one, relying on a variety of machines and many types of laborers to complete projects on time. However, the accounting practices a company uses are just as important. For businesses in the construction industry, there are two approaches…
How is Cost Contingency Calculated?
How is Cost Contingency Calculated? Cabbage for Sage Blog Contingency: the estimated amount added to the project base estimate to cover project risks. Having cost contingencies helps prevent cost overrun issues, which can be disastrous to a project. But how do you estimate project contingency correctly? While it can be tempting to add a flat…
The Difference Between ‘Estimate at Completion’ and ‘Estimate to Complete’
‘Estimate at Completion’ and ‘Estimate to Complete’ in financial forecasting Construction projects don’t always run on time, so construction and real estate companies must adjust their estimates as project variables change. When that happens, you need to know the difference between ‘estimate at completion’ and ‘estimate to complete.’ WHAT IS ESTIMATE AT COMPLETION? An estimate…
Why Verifying Project Profitability is Important
Verifying Profitability in Sage 300 CRE (and beyond) is important When taking on a new project or analyzing an existing one, you should complete a project profitability verification. Confirm Accuracy Before starting a new project, or when assessing an existing one, you need to verify the project profitability to confirm the accuracy. The financial success…