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Commercial and Residential Subcontractor

  • 1.  Commercial and Residential Subcontractor

    Posted 10-08-2015 02:48

    Anyone out there both commercial and residential subcontractor?  I have a glass company that has never tracked job costing for their residential jobs as they range from $100 to several thousand and they do about 500 jobs a month residential.  They recently got Computer Ease as their software in order to do better job costing as they used to track commercial job costing in Excel.  Computer Ease does have a Service Module they could track smaller jobs in without creating a job and keeping them off the WIP report.  They do about $15M per year therefore need to be doing WIP entries.  

    Many of the residential jobs will not go month to month but some will.  The issue arising with them setting up a job for each residential is doing budgets for them as to not skew the WIP report numbers.  They currently do not have the staff to enter that much information on that many jobs and do it accurately.  

    If you have the same type of set up how do you handle this?  Do you create a job for every residential no matter how small?  Do you set an amount for the job to be set up (ie if job over $2000)?  Or maybe if the job will open and close in same month do not set up a job - run through service module?  I'm brainstorming here as I do not have an easy answer for them in setting up this system.  Also, I am not sure on the GAAP/FASB rules regarding WIP and size of the company.  Since both combined are the same company do they have to do all as jobs and run through WIP?  

    If clarification on my question is needed let me know.  I'm trying to get ideas on how to help them ease the pain of setting up so many jobs they really aren't interested in tracking the job costs in but if the go from one month to the next I know they should be set up so they are on the WIP.

     

    Thanks tons


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    Christy Hord MBA
    Accounting Consultant for Construction Industry
    Christy's Bookin' It in South Austin
    Austin TX
    (512) 413-3345
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