Question 1

What makes bookkeeping for general contractors harder?

Accepted Answer

A GC usually runs several jobs at once, relies heavily on subcontractors, bills in progress draws and has retainage held on both sides. Each of those needs to be recorded against the right job, or job profit and cash position become guesswork.

Question 2

How do you handle retainage in the books?

Accepted Answer

Retainage receivable from owners and retainage payable to subcontractors are tracked separately from regular balances and by job, so you can see what is held, what is due and what has been released.

Question 3

How are change orders recorded?

Accepted Answer

Where your process supports it, approved change orders are recorded against the job and kept distinguishable from the original contract, so billing and cost can be compared to both. Unapproved work is not treated as billed revenue.

Question 4

Is this different from your general construction bookkeeping service?

Accepted Answer

The recurring work is the same foundation. This page explains how it applies to the records a general contractor specifically needs: subcontractor bills, progress billing, retainage and change orders.

Question 5

Can you prepare WIP schedules too?

Accepted Answer

WIP reporting is a separate, scoped service that uses these job-level records. Good GC bookkeeping is what makes a reliable WIP schedule possible.

Bookkeeping for General Contractors

GC records we keep organized by job

Common GC bookkeeping problems we look for

Where this usually leads next

Questions contractors ask about this

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