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Project Accounting Setup Checklist

The structural decisions that make or break project accounting for services firms: project and task structure, cost capture, billing rules, and revenue recognition, decided in the right order.

What you'll learn

  • Project and task structure decisions that outlive the setup
  • Labour cost capture and the loaded-rate question
  • Billing rule setup by engagement type
  • Revenue recognition mapping before the first invoice
Most project accounting pain is structural. It was decided, usually by default, on the day the system was set up.

What's inside

Firms rarely outgrow project accounting software. They outgrow the decisions made during setup: task structures that do not match how work is sold, cost rates that were never loaded, billing rules bolted on per client until nobody can explain an invoice.

This checklist is the decision list. Work through it in order, because the later choices depend on the earlier ones.

  1. 1

    Structure

    Project template matches how you sell: phases and tasks mirror proposals

  2. 2

    Cost capture

    Labour cost rates loaded: salary plus burden, reviewed on a schedule

  3. 3

    Billing rules

    Each engagement type mapped: T&M, fixed fee, milestone, retainer

  4. 4

    Revenue and reporting

    Revenue recognition method mapped per engagement type

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