Project Accounting Pittsburgh, PA

Project Accounting

Project Accounting is also called job cost accounting, and is specifically designed to track the progress of projects from a financial standpoint. The reports generated by this type of accounting are essential to management, and deal with divisions, as well as the enterprise as a whole, over specified periods of time. In some cases projects may cross intra company boundaries, last from several days to years, include the reorganization of budgets, and be sub- projects of a larger project.

Project accounting occurs in governmental projects where there is a need to monitor costs by contract line item (CLIN) in order to authorize interim payments.  The project manager must report on percentage of completion so that the project budget may be adjusted. Timesheets are required for employees where labor is a major part of a project so that data may be collected to allocate project costs.

Corporations and governmental entities will have major investment projects that will have upfront costs and long term benefits. Decision makers rely on the project accountant to provide information on the feasibility of such projects.