Construction Accounting

Construction Accounting Built Around the Way Contractors Actually Operate

Contractors do not sell units. They sell projects that consume labor, materials, subcontractors, and cash across months, get billed in stages, and hold retainage at the end. Accounting that ignores that structure produces reports the owner cannot use.

We run the accounting so the financial statements, the job reports, and the bank balance tell the same story.

What we handle

Monthly accounting and close
Job costing
WIP reporting
Progress billing considerations
Retainage tracking
Cash flow reporting
Project profitability analysis
Balance sheet reconciliations
Management reporting
QuickBooks setup and cleanup
Back office accounting support

Contractor specific issues we correct

Labor burden not reaching the job
Processor fees and refunds distorting job margin
Material deposits recorded as job cost too early
Change orders never tied back to the original estimate
Retainage buried in accounts receivable
Job reports that do not reconcile to the profit and loss
Deliverables

What you receive every month

Construction accounting services are only useful if they end in reports an owner can act on. This is the standard monthly package.

Monthly close package

Profit and loss, balance sheet, and cash summary delivered on a fixed monthly date.

Job cost report

Estimate versus actual by job and cost type, reconciled to the general ledger.

WIP schedule

Percent complete, earned revenue, overbillings and underbillings for every open job.

AR, AP and retainage aging

Retainage separated from ordinary receivables so collections are not overstated.

Cash position and forecast

Where cash sits today and what payroll, subs, and material buys will do to it.

Owner review call

A working session on margin, cash, and the decisions the numbers point to.

Comparison

General bookkeeping vs construction accounting

The difference is not effort. It is whether the accounting is built around jobs.

CapabilityGeneral bookkeepingConstruction accounting
Cost tracked by job and cost typeRarelyAlways
Labor burden pushed to the jobNoYes
Revenue matched to progress (WIP)NoMonthly
Retainage tracked separatelyNoYes
Change orders tied to the estimateNoYes
Job reports reconciled to the P&LNoEvery close
How engagements are scoped

Engagements are scoped based on revenue, entity count, transaction volume, accounting complexity, reporting requirements, and the level of finance support required.

FAQ

Questions contractors ask about this

The general ledger is only half the job. Contractors need cost tracked by job and cost type, revenue matched to progress, retainage and progress billing handled correctly, and reporting that reconciles job records to the financial statements.

Your financial reports should answer questions.
Not create more of them.

Book a 20-minute review of your job margins, cash flow and reporting — or model a contract's cash impact first with the free analyzer.

Not ready to talk? Take the 3-minute Financial Health Check.

Book a 20-Minute Financial Review