In short

Construction bookkeeping is organized around jobs. Every bill, purchase, payroll entry and subcontractor payment is coded to a project so job profitability can be compared with the estimate. Progress invoices and retainage receivable are recorded separately so the owner can see what has been earned, billed and collected. Subcontractor Form W-9s are collected before the first payment and payments are tracked all year for Form 1099-NEC reporting, and equipment and vehicle purchases are kept on an asset list with their documents.

Contractors do not run one business; they run a series of projects, each with its own budget, timeline and cash pattern. Bookkeeping for construction is built around those jobs so you can see which projects make money while they are still running.

Job costing from day one

Every cost is coded to a job, and where useful to a cost code such as site work, framing, electrical or finishes:

  • Materials from supplier invoices and card receipts
  • Subcontractor bills
  • Equipment rental and fuel
  • Labour hours from timesheets, at a loaded cost

Overheads that cannot be tied to a job, such as office rent or the estimator's salary, are kept separate. Comparing job costs to the estimate every month shows overruns early enough to act.

Progress billing, change orders and retainage

Many projects are billed in stages against a schedule of values. We track each billing against the contract amount, record approved change orders, and hold back retainage as a separate receivable until it is released. The same applies in reverse when you withhold retainage from subcontractors.

Subcontractor records

Subcontractors should provide a Form W-9 before they are paid, and many contractors also track insurance certificates and lien waivers. We keep payment totals by subcontractor through the year, so the forms needed for independent contractors can be prepared quickly.

Common problems we fix

  • Materials bought for several jobs charged to one
  • Deposits from customers recorded as income before work starts
  • Retainage left in ordinary receivables and forgotten
  • Owner-operated trucks and tools mixed with personal use

Monthly output

A reconciled ledger, a job profitability report comparing actual to estimate, a receivables ageing that shows retainage separately, and a list of open questions. See how we work with construction companies, our bookkeeping services, or book a consultation.