Construction Project Management Tip: Regular Cost Updates Are Crucial for Accurate Financial Reporting

It is important for Project Managers to regularly update costs during a project because things are dynamic, and nothing goes exactly to plan. You could be beating the budget on labor hours, which may result in increased profitability, or you could be going way over on hours and ultimately need more resources to finish. There are also changes in scope, and without adequately updating your estimated costs, you would misreport revenue and profit, which impacts the bottom line and financial decisions.

This insight, contributed by AAFCPAs’ Partner Daniel Stanhope, MSA, CCIFP, CPA, was originally published in ProNovos’ Construction Forecasting 101: Three Financial Workflows for Making Better Predictions.

In consulting with construction and other clients, AAFCPAs has long advocated the benefits of analytics. As part of a strategic relationship, ProNovos makes its construction-specific analytics solutions available to the contractor clients of AAFCPAs.

How We Advise Construction Companies

AAFCPAs works with construction company executives who require ready access to reliable financial data for interpretation at all stages of project management. We advise on proven tax strategies and provide financial and operational solutions for construction clients. This includes ready access to financial data and guidance with data interpretation across the project lifecycle, helping executives run their business more efficiently and profitably. Beyond this, we provide counsel on tax planning and compliance, tax minimization strategies, corporate and state tax return preparation, profit enhancement solutions, and audit and assurance support.

If you have questions, please contact Daniel Stanhope, MSA, CCIFP, CPA, Partner at 774.512.4134 or dstanhope@aafcpa.com—or your AAFCPAs Partner.