Hi everyone, I recently started as CFO at a mid-size general contractor/developer in Chicago and have been contemplating revising our accounting policy to update our WIP schedules on a quarterly basis instead of monthly as our team is very small and I am trying to find efficiencies in our processes. We only do a "hard close" and prepare formal financial statements on a quarterly basis. We prepare soft close P&Ls on a monthly basis, but our WIP adjustment is relatively small compared to total contract revenues. We currently do not have any specific reporting obligations related to WIP with lenders or sureties. I am curious what everyone thinks about this approach and what trade-offs/considerations I should be aware of before making this change in policy. Thank you!
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Steven Trombley
Chief Financial Officer
LG Group
Chicago IL
(312) 858-0904
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