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Some of these were similar to accounting ledger paper. They became known as green sheets or spreadsheets. With the advent of computers in business, estimators began using spreadsheet applications like VisiCalc, Lotus 1-2-3, and Microsoft Excel to duplicate the traditional tabular format, while automating redundant mathematical formulas. [2] [3]
Practically, these are usually built as Excel spreadsheets and then consist of the following interlinked sheets (see Outline of finance § Financial modeling for further model-build items), with broad groupings: Project build and operation (Data input): operating assumptions; Capital costs (construction); Insurance; Taxes; Depreciation; Financing
The accounting for long term contracts using the percentage of completion method is an exception to the basic realization principle. This method is used wherein the revenues are determined based on the costs incurred so far. The percentage of completion method is used when: Collections are assured; The accounting system can: Estimate profitability
Construction accounting is a form of project accounting applied to construction projects. See also production accounting . Construction accounting is a vitally necessary form of accounting, especially when multiple contracts come into play.
For construction contractors or construction managers it is important to track and compile past data of trends, completed projects, production factors, equipment changes, and various labor markets. [32] Sample labor norms. The labor requirements are often the most variable and are a primary focus of construction cost estimators.
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