COINS Consultant Billy G. Stockton, Jr., CCIFP, writes about the importance of detailed general ledger budgets for construction companies of all sizes in the July/August 2008 issue of Construction Accounting and Taxation.

Generating the annual general ledger budget is an important function of the finance unit. This budget is the roadmap the company expects to be on for the year, with each individual period as a marker to note progress and identify any problems. The budgeting process itself leads to greater insight to the organization. However, there are costs involved in creating annual budgets. Each company has to decide the amount of effort to expend. The article provides specific advice about creating an initial budget and refining a contractor's current budgeting process.

Click here to download a PDF reprint of “General Ledger Budgeting: Creating and Using Annual Budgets as a Roadmap for Financial Progress” (PDF, 4.5 MB). (Reprinted with permission of Construction Accounting and Taxation. Copyright 2008, all rights reserved.)

Billy G. Stockton, Jr., is a Certified Construction Financial Professional. He speaks frequently at industry conferences and serves on various association committees. Mr. Stockton is a member of the Construction Financial Management Association and the Association of Certified Fraud Examiners.