How to Handle Work in Progress (WIP) or Construction in Progress (CIP) in QuickBooksRuth Perryman
June 30, 2009 — 892 views
Builders and contractors who purchase land and then develop it have to comply with accounting requirements for revenue and expense recognition that are a little different and require a some modification of the standard QuickBooks set up. The accounting rule is that revenue and costs are not to be recognized on financial statements as income and expense until the job is complete, or in some cases as certain milestones are completed for the job. Many engineering firms, attorneys and other similar organizations like to use work in progress (WIP) accounts as well.