NSW, sydney, March 25, 2014Construction companies need good construction accountants. The ever growing construction business employs a good number of accountants and pays them nicely. If you are looking for a good career, find it in the construction industry and educate yourself accordingly. The job of a construction recruitment is same as of other accountants in spirit, but this job differs in the very basics and includes a lot more complex accounting areas and theories. An aspiring accountant of this segment has to equip himself for these special tasks.

Accounting in the construction sector is basically a type of project accounting and production accounting applied to construction work. A construction accountants has to undertake different procedures for maintaining fixed assets, inclusion of new additions, write-offs and deletions, progress billing, invoicing and vendor payment. Some of these items are not required in conventional accounting. He needs to calculate monthly depreciation of fixed assets and tax deprecation and review fixed asset balance sheet account periodically. These accounts may have to take into account vehicles and equipments which may not be owned by the company. Method of progress billing complicates issues in construction accounting because these invoices are to be prepared for tax audits.

Budding accountants, who aspire to build a career in the construction segment of the industry, should prepare for handling industry specific accounting demands. The basics of this accounting are charging costs of construction and revenue recognition. Construction costs fall into three categories like land cost, labor cost and cost of equipments and tools or subcontracting for supervision. Other costs include support and security costs, insurance and selling costs. Construction projects are always in progress and there is a unique method of revenue recognition as the project progresses. This is done by estimating the overall profit proportioned according to the progress report at a particular point. This is dependent on estimation. Generally in other accounting segments, revenue recognition is not allowed until the project is substantially completed.

The job of a accounting for construction contracts becomes difficult as he has to look into the process of bidding and multiple tenders. Deriving the actual cost of a product is complicated in cases construction projects because the production involves several services hired from different sources and the projects span over a long period of time causing escalation of costs and reduced profits. Thus, this job of accounting is challenging and rewarding at the same time. It is rewarding because a construction accountant gets higher recognition for all the troubles he undertakes and the challenges he faces to keep the management clear of litigations. The salary and the parks are enviable. Moreover, there is competition among employers to recruit experienced accountants. The job provides variety in the form of movement between on-site duties and in-house desk-works. Exposure to advanced methods and international procedures make an accountant a true professional.

If you are pursuing a course of accountancy, prepare for construction accounting. This segment of accounting will give you honor, recognition and a good living that is worthy of the challenges of this sector.

Duncan Dovico is an Accounting Firms, Sydney based in North Sydney. Click here to contact the Duncan Dovico, or follow on : Google+

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