Accounting major but not CPA
I’m trying to compute buyout numbers for my father who owns a small business. His partner owns 67% of the service company. We are a HVAC service company and many of our jobs are ongoing or may last a week or two until completion. During this time there are costs allocated to these jobs which will eventually be marked up and charged to the customer. At the time the work is charged to the customer the costs and associated mark ups are now considered income. Would the costs associated with (WIP) before the customer is actually billed be considered part of a net income number being figured for the buyout number? Please let me know your thoughts. Thank you very much and have a great day.
Unfortunately WIP is not in my area of expertise. However, I have published your question to our forum in hopes that someone else can help to answer this question. You can also check out our bookkeeper directory to find a local bookkeeper or accountant in your area, click on this link:https://fitsmallbusiness.com/reviews/bookkeepers/.
Best of luck,
Crystalynn Shelton, CPA