For example, corporations will have their equity broken down into investments, retained earnings, and net income. On the other hand, sole proprietorships and partnerships simply list the capital belonging to the owner — or to multiple owners. Equity, also referred to as net worth, is made up of the assets left over after liabilities are paid.

The Mathematics of Money

For more than 250 years, Columbia has been a leader in higher education in the nation and around the world. At the core of our wide range of academic inquiry is the commitment to attract and engage the best minds in pursuit of greater human understanding, pioneering new discoveries and service to society. We asked all learners to give feedback on our instructors based on the quality of their teaching style. Professor Ibrahim Odeh provides an overview of the Construction Finance course, and introduces the guest speakers. There is no prior knowledge that is needed; however, https://www.inkl.com/news/the-significance-of-construction-bookkeeping-for-streamlining-projects an understanding of simple and compound interest, financial keywords would be beneficial. Upon successful completion of the course, participants will receive a verified digital certificate from Emeritus in collaboration with Columbia Engineering Executive Education.

See how employees at top companies are mastering in-demand skills

To schedule a CFMA course for your chapter, company, or association, please contact Assets are a company’s financial resources — in other words, anything that is cash or could likely be converted to cash. Instead, retainage is tracked in separate accounts on the general ledger, typically called retention receivable and retention payable. Once the retained funds are due to be released, the amounts are transferred to accounts receivable or payable.

Project Finance

• A balance sheet is an overview of a company’s finances, including assets, liabilities, and equity.
• Companies that underpay taxes must pay interest to the IRS on the amount underpaid, while companies that overpay will receive a return with interest — which is usually not as valuable as having cash on hand.
• Most importantly, this method enables financial managers to get a clear view of the current financial status of each project as well as the financial horizon as each project progresses.
• Navigating the financial ebbs and flows of construction projects demands a deep understanding of how to manage cash flow.
• You also need to understand the major differences between the AIA documents and the new Consensus DOCS.

Notably, a very high working capital turnover ratio could indicate that the business is undercapitalized, meaning that it will not have enough capital to support its own growth from high sales volume. Sam Spata provides an overview of Lean in Construction Financing and describes how to identify and mitigate risk using Lean construction bookkeeping Project Delivery Systems. Eduardo Gamez discusses risk in project financing outlining the different entities involved in a transaction for a project. Professor Ibrahim Odeh discusses the Mathematics of Money beginning with a definition of the Time Value of Money. Calculating simple and compound interest rates are covered along with distinguishing between nominal and effective interest rates.

• The purpose of retainage is to ensure that owners have some assurance that contractors complete the entire job rather than abandoning work after progress payments are made.
• Columbia Engineering Executive Education is collaborating with online education provider Emeritus to offer executive education programs through a dynamic, interactive digital learning platform.
• Our connected global construction platform unites all stakeholders on a project with unlimited access to support and a business model designed for the construction industry.
• If you are a CFMA member and would like to enroll someone at your company in this course who is not a CFMA member, please contact CFMA at for more information.
• To schedule a CFMA course for your chapter, company, or association, please contact
• This course is an introductory level course that is 4 hours and earns 4.0 CPE credits in the field of Management Services.

Costs

You don’t need to be a lawyer to read a contract (though you absolutely want one to), but you do need to understand what you are reading. You also need to understand the major differences between the AIA documents and the new Consensus DOCS. This course will help you learn which clauses to look out for so you can protect your company’s bottom line.