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Construction Accounting Glossary

Here's every accounting term subcontractors need to know.

A

ACH (Automated Clearing House)

Accounting Equation

Accounts Payable (A/P)

Accounts Receivable (A/R)

Accrual Accounting

Accrued Expenses

Accrued Revenue

Applied Overhead

B

Billings in Excess of Costs

Bottom-of-Chain, or Low-Tier

Breaking Ground

Budget Analysis

Business Interruption Insurance

D

Days Working Capital

Depreciable Life

Double-Entry Accounting

E

Enterprise Resource Planning (ERP)

Equity Turnover Ratio

F

Final Lien Waiver

Financial Statements

Float the Project

G

General Contractor (GC)

General Ledger (G/L)

General Liability Insurance

General and Administrative Costs (G&A)

Generally Accepted Accounting Principles (GAAP)

Guaranteed Maximum Price (GMP)

I

Income Statement

J

Job Cost Structure

Joint Check Agreement

L

M

Matching Principle

Material Overhead

Mechanic’s Lien

N

Notice of Intent to Lien (NOI)

What is a Notice of Commencement (NOC)?

O

Outside Financing

Overhead Allocation

Q

Quantity Survey

R

Receivables Turnover Ratio

Request for Change Order (RFC)

Request for Information (RFI)

Request for Proposal (RFP)

Required Document

Revenue Recognition

Risk-Shifting Mechanism

S

Schedule of Values (SOV)

Single-Entry Accounting

Software as a Service (SaaS)

Subcontractor (SC)

Subcontractor Default

What is a sworn statement?

T

Time-and-Material billing

Time-and-Materials Contract

Top-of-Chain, or High-Tier

Trade Contractor

U

Unconditional Lien Waiver

Uninstalled Materials

Unit Price Billing

Unit Price Contract

V

Variance Analysis

Voluntary Document

W

Work in Progress (WIP)

Workforce Management

Working Capital

Working Capital Turnover Ratio

Y

Z

Zero-Balance Account