General Contracting Business Chart of Accounts Template
General Contracting business requires a diverse set of accounts to track its wide range of activities. Here's a likely chart of accounts for such a business:
Assets
1. Current Assets
Cash in Bank: Ready-to-use funds in checking and savings accounts.
Accounts Receivable: Money expected from clients for completed projects or ongoing work.
Inventory: Stock of materials and supplies for projects.
Prepaid Expenses: Payments made in advance for services like insurance or rent.
Job Deposits/Advance Payments: Upfront payments from clients for starting projects.
2. Fixed Assets
Vehicles: Trucks, vans, or cars used for job sites and meetings.
Equipment: Heavy machinery and tools used in construction.
Buildings: Owned office or warehouse spaces.
Land: Plots owned by the business.
Accumulated Depreciation: Recognizes the reduction in value of assets over time.
Liabilities
1. Current Liabilities
Accounts Payable: Amounts due to suppliers and subcontractors.
Short-Term Loans: Debts to be repaid within a year.
Wages Payable: Salaries and wages due to employees.
Sales Tax Payable: Sales tax collected and owed to the government.
2. Long-term Liabilities
Notes Payable: Loans to be paid back over extended periods.
Mortgages: On buildings or land.
Equity
Owner's Capital: Investment of the owner(s) in the business.
Retained Earnings: Profits kept in the business after distributions.
Owner's Draw: Amounts owner(s) withdraw for personal use.
Income
Construction Revenue: Main income from construction projects.
Consultation Fees: Revenue from providing consultation services.
Change Order Revenue: Additional fees from changes in ongoing projects.
Cost of Goods Sold (COGS)
Materials Cost: Cost of materials used for projects.
Direct Labor: Wages of workers directly involved in project completion.
Subcontractor Costs: Fees paid to subcontractors.
Equipment Rental: Costs to rent necessary equipment.
Expenses
1. Operating Expenses
Rent & Utilities: Office or warehouse space and related utility bills.
Salaries & Wages: For administrative and other non-project staff.
Advertising & Marketing: Promotions, ads, and other marketing expenses.
Insurance: Liability, worker’s compensation, and other relevant insurance types.
Travel & Vehicle Expenses: Job site visits, client meetings, etc.
Training: For keeping staff updated with the latest construction techniques or safety standards.
Licenses & Permits: Necessary for operation in the jurisdiction.
2. Other Expenses
Interest Expense: From loans or credit lines.
Depreciation: On vehicles, equipment, and buildings.
Office Supplies: Miscellaneous office-related costs.
Professional Fees: For accountants, lawyers, or consultants.
Bank Charges: Various bank fees.
Remember, this is a basic and generalized chart of accounts for a General Contracting business. Depending on the size, location, and specialization of the business, additional accounts might be required. We’d be happy to assist your company setting up what will work best for you!