Construction & Project Accounting  & AIAG702/G703 is specialized from regular invoicing.

Many construction companies invoice for large jobs and projects. Billing is based on a percent of completion. Because of so many variables, it is important to choose an accountant who understands this concept of invoicing.   There is retention amounts that are held for large on-going projects. As a result, often an AIA G702/G703 progress billing form is necessary.   

G702 is a summary of the following: 

  • Sum of contract to date
  • Contract Amount
  • Previous Billed & Total Paid to Date
  • Change Orders
  • Current Amount Requested

 The G703- provides the following: https://www.informedcontractors.com/aia-forms-g702-g703.html

  • Job Codes & Job Cost
  • Scheduled Values
  • Percentage of completion
  • Retention  for each line item

So why is it important to find an accountant or bookkeeper who “specialize” in construction accounting?  Because there is a lot to consider, such as, Change Orders, Retention, Progress Billings, Lien Waivers. With so much to track, errors are not an option.

It is not enough to hire just any bookkeeper or accountant. An experienced construction accountant can make your project run smooth. Not understanding progress billings can cause delayed payment.  Errors can cause an over/under billing. Fixing these mistakes are time consuming and costly to your job.

The General Contractor is responsible to pay all their subcontractors. In many cases, payment on your job is imperative in order to pay the smaller subcontractors. This requires excellent cash flow.   It is necessary to have an experienced accountant.  Knowledge and experience with Construction & Project Accounting  AIAG702/G703 can make all the difference.

In addition to progress billings, there are lien waivers to consider. Accuracy of all lien waivers is an absolute for payment release.

Call Gal Friday Bookkeeping today! https://www.galfridaybookkeeping.com/contact-us/ We have years of construction industry experience. Our knowledge and passion can bring you the peace of mind you deserve.