How a construction contractor records taxable income and deductible expenses is determined by his or her choice of accounting method. Most construction companies use a collection method.
Contents:
- General and administrative costs (G&A)
- Labor cost
- Cash method
- Collection method
- Types of special accumulation methods
How a construction contractor records taxable income and deductible expenses is determined by his or her choice of accounting method. Most construction companies use the accumulation method. The accounting method is based on the size of the company and the duration of the contract. A construction contractor must identify costs as two basic categories: labor costs, and general and administrative (G&A) costs.
General and Administrative Costs (G&A)
G&A costs are the day-to-day administrative expenses of a business operation that cannot be attributed to a particular job. It includes items such as office expenses and utilities.
However, certain administrative expenses are sometimes thought of as indirect labor costs rather than as G&A costs. These are operating costs that may be associated with a particular contract. For example, advertising expenses to sell a particular property can be thought of as indirect employment costs. Other advertising expenses are still classified as G&A costs.
Labor Cost
Labor costs are expenses that are directly or indirectly related to a particular construction project. Subcontractor payments, direct labor, and materials are direct costs.
Indirect labor costs are administrative costs required to fulfill a contract. Whether a contractor calculates these costs as indirect labor costs or includes G&A costs depends on the size of the contractor and the sophistication of the accounting system.
Cash Method
Small construction companies often use cash accounting methods. Under this method, cash receipts are recorded as income when payment is received. Expenses are deducted when paid.
A construction contractor is not allowed to use the cash method if the business is a company or a partnership with a corporate partner. The cash method is also not allowed for construction contractors with annual gross income in excess of US $ 10 million. This restriction has no exceptions.
In addition, construction contractors can be deducted from the use of the cash method, if the total purchase of "goods" for the year is "large" compared to annual gross income. Merchandise is any item that is physically incorporated into a product for a customer. For the construction industry, goods are usually called materials, such as wood or concrete. Merchandise is generally considered large when at least 10 to 15% of gross revenue for the year is discovered. This percentage has not been established by law but has been used in a number of judicial cases.
UpMarketResearch offers a latest published report on “Global Carbon Sulfur Analyzers Market Industry Analysis and Forecast 2018-2025” delivering key insights and providing a competitive advantage to clients through a detailed report.
It presents a comparative detailed analysis of all the regional and major player segments, offering readers a better knowledge of areas in which they can place their existing resources and gauging the priority of a particular region in order to boost their standing in the global market.
The numerical data is backed up by statistical tools such as SWOT analysis, BCG matrix, SCOT analysis, PESTLE analysis and so on.
The statistics are represented in graphical format for a clear understanding on facts and figures.
The generated report is firmly based on primary research, interviews with top executives, news sources and information insiders.
The following manufacturers are covered in this report:ELTRA Analytik Jena NCSElementar Nanjing Qilin Scientific InstrumentNanjing No.4 Analytical InstrumentJinyibo Instrument Manufacturing Integrated BaseWuxi Yinzhicheng High Speed Analyzing ApparatusNanjing GuqiShanghai Keguo Instruments Carbon Sulfur Analyzers Breakdown Data by TypeTube Type Carbon Sulfur Analyzers Electric Arc Type Carbon Sulfur Analyzers High Frequency Type Carbon Sulfur Analyzers Carbon Sulfur Analyzers Breakdown Data by ApplicationSteel Industry Mining ConstructionMachinery Industry Electronics Carbon Sulfur Analyzers Production by Region United States Europe China Japan Other Regions Carbon Sulfur Analyzers Consumption by Region North AmericaAsia-PacificEurope Central & South America Middle East & Africa The Report covers in-depth analysis as follows:Chapter 1 Study CoverageChapter 2 Executive SummaryChapter 3 Market Size by ManufacturersChapter 4 Carbon Sulfur Analyzers Production by RegionsChapter 5 Carbon Sulfur Analyzers Consumption by RegionsChapter 6 Market Size by TypeChapter 7 Market Size by ApplicationChapter 8 Manufacturers ProfilesChapter 9 Production ForecastsChapter 10 Consumption ForecastChapter 11 Value Chain and Sales Channels AnalysisChapter 12 Market Opportunities & Challenges, Risks and Influences Factors AnalysisChapter 13 Key Findings in the Global Carbon Sulfur Analyzers StudyChapter 14 Appendix Buy this report@ https://www.upmarketresearch.com/buy/carbon-sulfur-analyzers-market “Global Carbon Sulfur Analyzers Market Industry Analysis and Forecast 2018-2025” report helps the clients to take business decisions and to understand strategies of major players in the industry.
