Accounting for the construction industry differs from other industries due to factors like variable costs associated with traveling to job sites, equipment and material delivery, and the diverse nature of work. Construction accounting faces unique challenges like inaccurate cost estimates, fluctuating overhead costs, complex cost recognition, and scope creep. Experienced accountants and software can help construction businesses tackle these issues and provide specialized services like separate project accounting, task budgeting and costing, and automated invoicing.

1. ACCOUNTING FOR
CONSTRUCTION
INDUSTRY

2. WELCOME TO OUR
COMPANY
Accounting for the construction
industry is different from that in
other industries.
In construction business,
people work at new
locations and work done is
quite different in nature, for
regular terms.

3. There are different factors that
affect costing in a construction
business like travel time, packing
of tools and equipment, delivery
of materials at the job sites,
which are all variable in nature.

4. HOW DOES CONSTRUCTION
ACCOUNTING DIFFER FROM
GENERAL ACCOUNTING?
Knowing the break-even point:
Breakeven point can be achieved by
the balancing relation of income and
expenses, but in the construction
business, it’s very complex as there are
already too many categories of the
items that make it hard to comprehend.
02
Categorization of sales: Unlike the
regular business, construction
business stands for a wide range of
selling products like engineering,
coasting, labor, designs, service
provided, etc.
01
03
Expense calculation: In a typical business,
the expenses are mostly pre-decided or can
be predicted but in a construction business,
this is never the case. Even the
categorization of the goods sold is differently
accounted for in construction business.

5. HOW CAN MERU ACCOUNTING HELP YOU IN
THAT?
We understand the different
requirements that a
construction business
needs.
02
We at Meru Accounting have
specialization in accounting
for the construction industry,
house flipping business and
turnkey project accounting.
01

6. WORKFLOW MAX BENEFITS
• We can have separate projects in Workflow max.
• We can have various tasks in that.
• In each task, we can assign the Cost and Profit.
• We can assign tasks to each of the team members.
• It automatically creates invoice in a single click.
• We can convert the cost of WIP into the Sales Invoice automatically.
• We can have the Budgeted Cash flow automatically from Xero.
• It can automatically convert purchase orders to a bill in Xero instead of
Duplicate Data entry.
• We can assign margins in the% form to the cost.
• We will be able to have Tracking of Profits for individual projects in Workflow
Max.
• You will have all the project’s performance on your Dashboard of Workflow
max.

7. Accountant faces various challenges in
performing the accounting procedures.
Such challenges arise due to the
uniqueness of the industry.
UNIQUE CHALLENGES OF
CONSTRUCTION
ACCOUNTING
Experienced professionals and software
such as Xero etc. can assist you in
tackling issues

8. INACCURATE
COST ESTIMATES
FLUCTUATING
OVERHEAD ESTIMATES
COST-RECOGNITION
PROBLEMS
SCOPE CREEP

9. THANK YOU