Results 1 to 2 of 2

Thread: Accounting for construction companies

  1. #1
    New Member
    Join Date
    Nov 2014
    Location
    South Africa
    Posts
    2
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Accounting for construction companies

    Can anyone help with regards to the accounting for construction companies? I am doing the books for a builder, and need to know how to recognize income and expense in order to calculate the VAT. I know that income and expense are recognized on a stage of completion basis, but how does one put this into practice?
    Any help would be great!

  2. #2
    Full Member
    Join Date
    Jun 2012
    Location
    Eastern Cape
    Posts
    41
    Thanks
    1
    Thanked 3 Times in 3 Posts
    Expenses= Everything he buys when he buys it and Income = The invoices he gives to the customers.

    The expenses are recognized when it happens, you can make use of cost codes to link them together for jobs. Claim the VAT the moment it happens otherwise you will confuse yourself.

    Income is realized the moment that invoice gets handed to the client.

    Hope this helps, if not you will need to explain your question in more detail

Similar Threads

  1. New companies Act legal and accounting requirements for a Private Companies
    By Dastan Kieton in forum Business Finance Forum
    Replies: 8
    Last Post: 08-Nov-12, 07:47 AM
  2. [Article] New companies Act legal and accounting requirements for a Pty
    By Dastan Kieton in forum Business Finance Forum
    Replies: 1
    Last Post: 24-Oct-12, 08:46 PM
  3. Safety inspection blitz on construction companies.
    By Dave A in forum General Regulatory Compliance Forum
    Replies: 1
    Last Post: 08-Mar-07, 07:40 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •