Construction Accounting 101 - Navigating Change Orders & Revenue Recognition: Construction Accounting 101

In this episode of our Construction Accounting 101 series, Reid Bangert is joined by Lisa Hut to explore the complexities of change orders in construction projects. Learn how to properly account for approved and unapproved change orders, understand FASB Topic 606, and discover best practices for tracking and reporting these changes. Whether you're a contractor, CFO, or financial professional, this video will help you navigate the challenges of revenue recognition and ensure your financial statements reflect accurate project costs. Don't forget to like, comment, and subscribe for more expert insights into construction accounting! Disclaimer: This video is for informational purposes only and does not constitute financial advice. Please consult with a CPA or legal professional for advice specific to your situation. Chapters: 00:00 Introduction 00:07 Welcoming Lisa Hut 00:12 Overview of Change Orders 00:43 FASB Topic 606 & Revenue Recognition 01:06 Accounting for Approved Change Orders 01:38 Unapproved Change Orders: What to Do 03:31 How Change Orders Affect Financial Statements 06:23 Proactive Communication & Contract Review 08:21 Importance of Construction-Specific Accounting Systems 08:40 Conclusion & Final Thoughts Have questions? Sign up for a free Ask Richard account and get expert advice on Sage Intacct: https://askrichard.io