How to recognize the revenue and cost of a construction supervision company and what accounting entries to make

A construction supervision company is a company that provides engineering supervision services. Construction supervision will be in accordance with the laws and regulations, engineering construction standards, survey and design documents and contracts, in the construction phase of the construction project quality, construction

Construction supervision company's costs are generally through the "cost of doing business", supervision fees belong to the monthly settlement, usually without the need for the "labor cost" account over-accounting costs. Labor costs" account over-accounting for costs;

The accounting entries will generally be in accordance with two ways:

One is the direct cost of supervision: wages, special expenses, including office expenses, travel, accommodation, subsidies, books, newspapers, communication costs, medical expenses, transportation costs, etc.; the purchase of instruments and other items; other external service expenditures.

Borrow: the cost of providing labor services

Loan; bank deposits payable to employees and other subjects

Two on the indirect costs: indirect costs, including: managers, administrative staff, logistics staff salaries, allowances, additional salaries, bonuses, etc.; operating costs, office expenses, other fixed assets and commonly used tools and equipment, the use of funds, interest on loans; operational training costs, the purchase of books and other educational expenses. Training fees, purchase of books and materials and other educational expenses; new technology development, research and development, trial fees; consulting fees, employee welfare, labor protection, insurance; administrative activities. Other non-operating expenses. Revenue accounting, in the month when revenue is recognized and invoiced:

Borrow: Accounts Receivable

Loan: Revenue from Main Businesses