0 1 2 Review of balance sheet includes an understanding of changes in two key ratios—current ratio (measure of liquidity) and debt-to-equity rate (measure of leverage).
0 1 2 Review of balance sheet includes review of accounts receivable and accounts payable aging reports, which support the balances in those accounts on the balance sheet.
0 1 2 Review of balance sheet includes review of over- and under-billing on jobs in progress being recognized using the percentage-of-completion method of accounting.
0 1 2 Percentage-of-completion worksheet (often called work-in-progress report) is prepared and reviewed on a monthly basis.
0 1 2 Percentage-of-completion worksheet includes an analysis of remaining revenue and gross profit available to be earned on jobs in progress.
0 1 2 Detail job cost reports comparing budget to actual costs by cost code is reviewed monthly.
0 1 2 Job cost budgets are updated on the percentage-of-completion worksheet monthly to reflect the company’s current estimate of total estimated costs.
0 1 2 Job cost reports include jobs by key categories such as type (remodel, custom with land, and custom without land), contract type (fixed price, time and material), superintendent, and community.
0 1 2 Job review includes discussion and understanding of variances between actual and budget results. (In reviewing your variances you need to ask yourself two questions: What caused the variance? What can I do about it?)
0 1 2 Monthly financial review includes a discussion regarding how the company is progressing in hitting its targeted net income for the year.
