Construction Accounting: A Deep Dive into Work in Progress 2 CPE

US Bureau of Labor Statistics show that as of October 2022, there were $7.73M people working in the construction industry. In addition, data from the Association of General Contractors of America shows that the construction industry has nearly 750,000 employers in the US and creates nearly $1.4 trillion worth of structures each year.

With the continued resurgence of this industry, understanding how to do the accounting for these companies will be an invaluable skill. Therefore, this course introduces one of the most integral parts of construction accounting and project management, the work in progress or WIP report. Through the definition of useful terms and using relevant examples, we’ll examine everything from why the WIP report is important to how to compile and analyze it.

Course Key Concepts: Construction Accounting, Project Accounting, Work in Progress/Work in Process (WIP), Overbilling/Underbilling, Cost at Completion, Percentage of Completion.

Prerequisites

No advanced preparation or prerequisites are required for this course.

Learning Objective

• Explore the concepts of Construction Accounting and Work in Progress (WIP).
• Recognize why a WIP Schedule is Important to a Construction Business.
• Discover the Components Necessary to Compile a Work in Progress Schedule and Prepare a Sample Report.
• Identify how to analyze a WIP Schedule.

Last updated/reviewed: March 17, 2024