Quarter Academic Credit
This course will introduce students to the basics of construction accounting and the importance of strong financial management in the construction industry. Students will learn about and conduct exercises in payroll, purchasing, job costing, revenue recognition, double entry bookkeeping, financial statements, selection of entity structure, insurance, surety and cash management. In addition, internal controls and risk management are reviewed as part of successful financial management in the construction industry.
- Identify basic fundamentals of construction accounting including, but not limited to, job costing with direct/in-direct costs, revenue recognition, union and open-shop payroll calculations, equipment costing, basics of cash management, and liquidity factors.
- Evaluate basics of risk management including insurance coverage and surety.
- Assess issues of double entry bookkeeping through the use of T-accounts.
- Defend the importance of liquidity in the viability and longevity of a construction company.
- Judge options for entity structure and hypothesize general income tax implications and concerns.
- Simulate how to estimate a project to completion, and how to track job costs against original budgets developed from the original estimate for a project.