Construction business accounting is the practice of managing financial records, bookkeeping, and preparing financial statements and reports related to the construction industry. It includes such activities as tracking and recording costs associated with a construction project, budgeting, forecasting, analyzing financial performance, and income and expenditure management. Construction business accounting requires knowledge of the construction process and an understanding of the laws and regulations that affect the construction industry. By applying sound principles of accounting and financial management, construction businesses can ensure that their operations are profitable and efficient.