Where accounting makes "cents"

  WIP shows if a contractor is accurately estimated job costs in a profitable manner. It helps to manage cash and summarized the value of work not yet invoiced. To calculate WIP you need Contract Value / Budget Cost / Actual Cost / Billed Revenue. 𝐖𝐈𝐏 = (𝐀𝐜𝐭𝐮𝐚𝐥 𝐂𝐨𝐬𝐭 / 𝐁𝐮𝐝𝐠𝐞𝐭 𝐂𝐨𝐬𝐭) 𝐱 𝐂𝐨𝐧𝐭𝐫𝐚𝐜𝐭 𝐕𝐚𝐥𝐮𝐞 – 𝐁𝐢𝐥𝐥𝐞𝐝 𝐑𝐞𝐯𝐞𝐧𝐮𝐞 Actual / Budget = % Complete % Complete x Contract = How much should be invoiced Subtracting Billed Revenue = Avoid repeat billing If you calculation = ZERO … Congratulations If your calculation = POSITIVE … Work has been completed and not invoiced 𝐈𝐟 𝐲𝐨𝐮𝐫 𝐜𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐢𝐨𝐧 = 𝐍𝐄𝐆𝐀𝐓𝐈𝐕𝐄 … 𝐍𝐨 𝐁𝐮𝐞𝐧𝐨! 𝐘𝐨𝐮 𝐚𝐫𝐞 𝐛𝐢𝐥𝐥𝐢𝐧𝐠 𝐢𝐧 𝐞𝐱𝐜𝐞𝐬𝐬 𝐨𝐫 𝐚𝐡𝐞𝐚𝐝 𝐨𝐟 𝐭𝐡𝐞 𝐉𝐨𝐛. Make sure that you are working with a qualified job cost accountant that can help with your business. Not all accountants are well versed in job costing; it's a specialized niche!

In my opinion, I believe business owners should have a healthy sense of paranoia; especially when it comes to guarding financial operations. Harnesed paranoia keeps the business owner inspired, driven, skeptical and informed. My job is to investigate, report and recommend.  When investigating staff bookkeepers for fraud or evaluating controls and processes, my level of expectation is dependent upon the owner's knowledge of business operations and employee performance. I should not be the first person asking the bookkeeper the 5 w's. #businessowners #business #cfe #acccounting #accountant #accountinglife #accountingservices #bookkeeper #bookkeeping #bookkeepingservices #bookkeeperfraud #consultingservices #consultantlife #consultant #outsourced #outsourced #travelingaccountan t

If you own and operate a prosperous business and employ people that help fulfill the operations of that business, human nature dictates that we will trust those employees to make meaningful decisions. Unfortunately, statistics show that given the right circumstances, employees will steal. It is important to empower employees to excel in their role, but I am finding that the more business owners don’t want to be bothered with a task the easier it is to hand it off and the less likely the work will be reviewed. Sometimes this empowerment can cause a person to rationalize fraud. Many times bookkeepers are the “right hand” to a business owner and responsible for a large amount of duties with access to permissions, PII, check writing, banking and reconciliations with no oversight. If the owner is reaping the cash flow with new cars, vacations, personal purchases, this can cause the bookkeeper to rationalize lining their own pockets. It’s easy to get sucked into buying material things, partl...