chart of accounts for general contractor

A Chart of Accounts (COA) for a general contractor is a financial tool used to organize and manage a construction company's transactions. It categorizes accounts into key areas like assets, liabilities, equity, income, and expenses, designed specifically for the construction industry. A well-structured COA helps contractors track job costs, including labor expenses, materials, subcontractor payments, and equipment costs. With accurate project-based accounting, general contractors can effectively manage construction revenue, monitor retained earnings, and improve financial reporting. Properly managing the COA streamlines operations, helps with compliance, and supports better decision-making for financial management.