Construction Accounting Basics: From The CSLB Law & Business Exam To Construction Entrepreneur!

Construction accounting questions will be on the CSLB Law & Business Exam.

Accounting is a process used to record and measure financial information within a company.

• For most construction entrepreneurs, contractor accounting is one of the most important factors there is as it is used to track profitability and ensure transparency.
• Businesses are valued and regulated based on their financial reporting, so in most industries it is critical to have accurate accounting methods in place to ensure the long-term health of the business.
There are several types of accounting including:
• Construction Accounting
• Financial Accounting
• Managerial Accounting
• Budgetary Accounting
• Tax Accounting
• Government Accounting
• Non-Profit Accounting
Just to name a few…
Accounting methods vary depending on the industry. Construction accounting and financial management in the trades is especially unique. Money flows through a construction company in different ways that a other industries.
To get a General Contractor License you will need to pass the CSLB law and business exam. In addition to meeting the basic contractor license requirements, you will need to understand the fundamentals of accounting.
Several career paths within construction involve accounting knowledge, to learn about home inspection certifications check out this video:    • What Is Home Inspection? - Basic Home...  

Construction project management involves several skill sets outside of trade knowledge. You must understand the difference between a bookkeeper and accountant, contractor license law, employee rights, balance sheets, income and cash flow statements.
You will get an overview of what you will want to be aware of when looking for a bookkeeper, starting a construction business or hiring an accounting firm.
This video will cover the basics of Construction Accounting and will help you on your path to running or setting up a construction company.
To learn more about Construction accounting you check out the complete article here: https://digitalconstructive.com/const...