🚨 In construction finance, inconsistency isn’t just messy — it’s an audit risk.
Автор: Beiing Human
Загружено: 2026-01-16
Просмотров: 60
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On a recent Finance at the Jobsite episode, we talked about something auditors flag far more often than contractors realize:
Inconsistent labor and equipment burden allocations.
One job gets 25%.
Another gets 40%.
Another gets 50% — not because of policy, but because “this job is killing it.”
As Lee Klein III, CPA explained, when burden allocations aren’t tied to a clear, repeatable methodology (like utilization hours), the issue isn’t margin — it’s defensibility
From an audit standpoint, the questions become:
1. What policy governs burden allocation?
2. Is it applied consistently across jobs?
3. Can management explain why one job carries more burden than another?
When the answer is “it depends,” that’s where audits get uncomfortable.
The contractors who avoid this:
Allocate equipment and labor burden based on utilization hours
Tie repairs, maintenance, depreciation, and insurance to measurable usage
Apply the same methodology every time, across every job
That consistency is what turns job costing into something auditors can rely on — not challenge.
🎧 Full episode:
▶️ Podcast Page: https://beiinghuman.com/lee-klein-pod...
🎙️ Spotify: https://open.spotify.com/episode/22yU...
🍎 Apple Podcasts: https://podcasts.apple.com/us/podcast...
📩 More CFO-level conversations on audits, compliance, and job cost discipline:
👉 Subscribe to the Finance at the Jobsite newsletter
https://beiinghuman.com/newsletter-si...
#ConstructionAccounting #ConstructionAudit #JobCosting #ConstructionCFO #AuditReadiness #EquipmentCosting #FinanceAtTheJobsite
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