Which Year Do Project Results Fall Under??? - Business - Contractor Talk

Which Year Do Project Results Fall Under???

 
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Old 08-23-2010, 09:32 AM   #1
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Which Year Do Project Results Fall Under???


Lets say i started a project in late 2009 and it ended in mid 2010. For accounting purposes, do i count it for 2009? what is the stadanrd when you do this?
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Old 08-23-2010, 09:52 AM   #2
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Re: Which Year Do Project Results Fall Under???


Any money received from the project before the end of December 2009 goes n 2009 taxes.

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Old 08-23-2010, 10:28 AM   #3
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Re: Which Year Do Project Results Fall Under???


I know that. I mean in terms of profit, eliminating burden ect.. Wouldn't the profit of that project go to 2009 to compensate for the salary of the project manager?
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Old 08-23-2010, 10:50 AM   #4
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Re: Which Year Do Project Results Fall Under???


Why not split it as a percent.
Including all the pre-work say 30% (or whatever it is) goes in 2009 and the rest in 2010
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Old 08-23-2010, 12:49 PM   #5
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Re: Which Year Do Project Results Fall Under???


See your accountant - it varies depending on quite a few factors
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Old 08-23-2010, 01:40 PM   #6
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Re: Which Year Do Project Results Fall Under???


I just do an end of year close out for the project and figure it out that way. First year may show lower profits becuase your invested into the job but it will even out (or should if you bid it right) when you close the project the following year.
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Old 12-18-2012, 08:47 PM   #7
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Re: Which Year Do Project Results Fall Under???


But is there a standard for construction companies? How do most do this in this business?
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Old 12-18-2012, 11:12 PM   #8
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Re: Which Year Do Project Results Fall Under???


from what my accountant told me 20 years ago, it all has to do with when the check is in your account. Job is not done till your paid, etc....
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Old 12-19-2012, 12:03 AM   #9
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Re: Which Year Do Project Results Fall Under???


Depends if your set up for the cash method or accrual method of accounting. Both have ups and downs which is why you can't switch back and forth whenever you want.
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Old 12-19-2012, 12:58 AM   #10
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Re: Which Year Do Project Results Fall Under???


What's the goal here? You might choose one method if taxes are your main concern, while another might be better if you're showing your P&L to your bank. You have to be consistent, but there's some flexibility.

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