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Group of programs: Business automation

Software USU

Cost accounting in construction

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Accounting for costs in construction must be carried out extremely carefully and responsibly since too much depends on the quality of such control. The accounting should promptly and correctly reflect the costs incurred in the production process in the context of the types of work and individual construction sites, as well as recorded deviations from the approved norms for the consumption of building materials and preliminary design calculations of the cost. In addition, in general, the use of material, financial, personnel, and other resources of the organization is controlled. The costs included in the estimate documentation are divided into direct and invoice. Direct costs include material costs for the purchase of raw materials, materials, various building products and structures, equipment and inventory, technical (costs of operating mechanical equipment, machines, etc.), work (payment to workers). Accordingly, the number of costs will be determined by the applied technological methods used in the construction process, as well as by the organizational structure and staffing of the enterprise. Accounting for construction costs is determined by the existing Accounting Rules. Most often, when accounting for construction costs, the so-called order-by-order method is used, which consists in the fact that for each type of work or object a separate order is opened following the contract, and accounting is kept on an accrual basis until the completion of the construction of a particular building. This method is more suitable for organizations carrying out the construction of single structures according to individual projects. But an enterprise that performs homogeneous work (plumbing, electrical, landscaping, etc.) or builds standard objects in a short time can take into account expenses according to the accumulative accounting method (for a certain period in the context of types of work and cost points). The cost price is calculated here based on the ratio of the actual costs to the contract value or using other mathematical methods.

Who is the developer?

Thus, it is obvious that accounting for construction costs requires confident knowledge of numerous rules, accounts, as well as possession of a fairly complex mathematical apparatus. In modern conditions, the easiest way to do this is with the help of specialized computer programs that automate not only accounting procedures, but also key work processes. The optimal solution for most construction organizations will be a unique development of the USU Software, made by IT standards and legislative requirements that regulate the industry. The dedicated subsystem is designed for accounting and tax accounting. The program contains templates of all accounting documents used in accounting for expenses in construction, with reference samples for filling them out. This allows the accounting system to carry out a preliminary check of the correctness of the registration of accounting forms before saving in the database, timely identification of errors, and provide users with hints for correction. The management of the company within the framework of the USU Software can daily monitor the movement of funds in bank accounts and the cash desks of the enterprise, the dynamics of income and expenses, settlements with counterparties, accounts receivable, the cost of construction work, and so on. Let’s see what other feature our application can provide to people who decide to implement it in their construction accounting.

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Accounting for construction costs requires strict adherence to several special rules. The business accounting and automation system ensure unswerving observance of all regulatory requirements and principles stipulated in the industry legislation. The specifics of the construction company can be taken into account in the process of implementing the USU Software by adjusting the system parameters. All day-to-day work processes are optimized, a significant part of the functions is switched to automatic mode, which leads to a decrease in the workload of employees with routine actions for manual data entry. Within the framework of the USU Software, it is possible to manage multiple construction projects at the same time.

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Cost accounting in construction