Are you playing by the book? — A primer on construction accounting methods
Abstract: Contractors have multiple accounting methods to choose from. But some are off-limits to certain contractors. This article looks at the cash and accrual methods and the requirements that construction companies must meet to use one or the other. It also discusses two of the most common long-term contract accounting methods — percentage-of-completion and completed-contract — while a sidebar notes that contractors who use the percentage-of-completion method need to “look back” when the contract is done.