Accrual Accounting

Businesses using the accrual method of accounting in the MacNail construction accounting software should do all job costing from Logbooks. Use the Labor Logbook, Material Logbook, Subcontractor Logbook and Misc Logbook to enter all transactions, and use the Checkbook Ledger only for your actual checkbook accounting..

NOTE-- In 2000, MacNail was replaced by Goldenseal construction accounting software. Goldenseal is an integrated program that includes general accounting, job costing, payroll and project billing, plus estimating and other features. Goldenseal supports both cash and accrual accounting.

You will need to be careful about the dates entered into the Logbook. The date should reflect the actual date of 'economic performance' for the item. Some items (for example, insurance payments) will have to be entered on two or more lines, each line representing a pro-rated portion for a particular tax year or tax period.

Your accrued expenses for the quarter or for the year can be extracted by choosing *Reports. Make a report for Last year or a typed-in date range, for each type of cost.

You can get your accrued income for projects fully completed by making a Financial Report.

Accrued income for projects still under construction at year beginning or year end will have to be estimated, based on the Cost Control worksheets for each job in progress at year end. Enter percentage of completion for each phase of the project (see page 138). You will probably need to make a small separate worksheet to sum accrued income for all partially completed projects.