Sample Chart Of Accounts For Small Construction Company
A chart of accounts is a list of all the accounts used by a business to record its transactions. It is an essential tool for managing finances and keeping track of expenses. A small construction company needs a chart of accounts that is specific to its business. This article will provide a sample chart of accounts for a small construction company.
Asset Accounts
Asset accounts are used to record the resources owned by the business. These accounts include:
Cash
This account is used to record all cash transactions, including payments made and received.
Accounts Receivable
This account is used to record money owed to the business by customers who have not yet paid their invoices.
Inventory
This account is used to record the cost of materials and supplies held by the business for use in construction projects.
Equipment
This account is used to record the cost of equipment owned by the business, such as vehicles, tools, and machinery.
Liability Accounts
Liability accounts are used to record the money owed by the business to others. These accounts include:
Accounts Payable
This account is used to record money owed by the business to suppliers and other creditors.
Loans Payable
This account is used to record the amount of money owed by the business for loans and other financing.
Revenue Accounts
Revenue accounts are used to record the income earned by the business from its operations. These accounts include:
Construction Revenue
This account is used to record the revenue earned from construction projects.
Service Revenue
This account is used to record the revenue earned from services provided by the business, such as consulting or project management.
Expense Accounts
Expense accounts are used to record the costs incurred by the business in its operations. These accounts include:
Cost of Goods Sold
This account is used to record the cost of materials and supplies used in construction projects.
Labor Costs
This account is used to record the cost of labor, including wages, salaries, and benefits.
Equipment Rental
This account is used to record the cost of renting equipment for use in construction projects.
Conclusion
A chart of accounts is an essential tool for managing finances and keeping track of expenses for a small construction company. The sample chart of accounts provided in this article is a starting point for creating a chart of accounts that is specific to your business needs.
