Accounting for construction and trade contractors
Job costing, progress billing, certified payroll, and revenue recognition don't work the way they do for a retail shop or a service business. We build your books and your tax position around how a contracting business actually runs.
What makes contractor accounting different
- Job costing. Knowing which jobs actually made money, not just the year total, means tracking cost and revenue by job as the work happens, not reconstructing it after the fact.
- Progress billing and retainage. Retainage held back on a draw is cash you've earned but can't spend yet. It has to be planned around, not discovered as a gap between jobs.
- Percentage-of-completion vs. completed-contract accounting. These recognize revenue and cost differently, and which one applies (or is available to you) depends on the size and length of your contracts. Getting this wrong doesn't just misstate your books, it can misstate your tax position, and a GAAP-basis percentage-of-completion statement is usually the same one a surety or bonding company will ask to see.
- Certified payroll and prevailing wage. Public works jobs come with their own reporting layer: DIR contractor registration, weekly certified payroll reports, and prevailing wage classification that has to match the actual work performed.
- Subcontractor 1099s and worker classification. Getting the classification right the first time avoids a much more expensive conversation later.
- Equipment purchases. Timing, depreciation, and Section 179 elections that move real money depending on when a purchase happens, not just whether it does.
- Seasonal and variable crew payroll. Headcount that changes through the year needs payroll that can keep up without extra admin every time a crew grows or shrinks.
Software we work within
We work daily in both QuickBooks Desktop and QuickBooks Online, and if your jobs run through construction-specific software on top of that, we'd rather work inside it than ask you to duplicate entry somewhere else. We're familiar with Trimble Viewpoint (Spectrum and Vista), Sage 300 CRE and Sage Intacct Construction, and Miter for contractor payroll. For public works, that includes the DIR's certified payroll portal and LCPtracker, where an awarding body requires it.
FAQ
Common questions from contractors
Do you handle certified payroll for public works jobs?
Yes. We prepare weekly certified payroll reports for public works and prevailing wage jobs, including DIR contractor registration and reporting through the DIR's eCPR system and through LCPtracker where an awarding body requires it.
What's the difference between percentage-of-completion and completed-contract accounting, and which one applies to us?
Percentage-of-completion recognizes revenue and cost as a job progresses; completed-contract recognizes them when the job is finished. Which one applies, or is available to you, depends on the size and length of your contracts. We'll walk through which fits your situation before your books are built around the wrong one.
Do you work with Trimble Viewpoint, Sage, or Miter?
Yes. We can work inside the construction accounting or payroll software you already use rather than asking you to switch platforms or duplicate entry elsewhere.
Can you help track job costing so we know which jobs are actually making money?
Yes. Job costing by project is part of our bookkeeping and controller-level work, so job-level profitability is visible during the year, not just after it closes out.
How does retainage affect our cash flow, and can you help plan around it?
Retainage held back on a draw is cash you've earned but can't spend yet. We factor it into cash-flow planning so it doesn't create a surprise gap between jobs.
Do you prepare GAAP-basis financial statements for bonding or lender purposes?
Yes. Percentage-of-completion, GAAP-basis financial statements are common for sureties and lenders, and we track the book-to-tax differences alongside them so your tax return isn't built on a different set of numbers.
Talk to someone who knows the trade
Tell us what you're building, and we'll tell you what it takes to keep the books and the tax position under it in order.
Request a consultation