Renovation Books
Hey everyone!
Ive started working for a company that manages renovations. He uses contractors and a couple of labourers to manage his projects.
I’ve run into something that I did not learn through my courses and Im hoping for some guidance. We use Sage 50 for our software, Im located I’m BC Canada, and we use the accrual method.
When I get an invoice for materials, are these categorized as prepaid to be adjusted once the project is finished? Is there any situation where the materials are not prepaid?
I have invoices for contractors that require deposits and draws for their work, I’ve been posting just the deposit amounts and not the whole invoice thinking it might be easier and more accurate for gst reporting. I am now questioning if this correct according to GAAP.
If you have any other tips or suggestions for bookkeeping for a renovation company I’m all ears.
Thanks in advance for any information!