Accounting for Construction Contractors

Regular accounting practices don’t meet the unique needs of construction contractors. The services we offer are specially designed to cater to these specific needs, offering clarity and control over most, if not all, aspects of your business’s finances. Our main services include:

1. Job Costing & Profitability Analysis

We offer job costing services that track every expense on all individual projects to ensure you have an accurate picture of your company’s overall financial health. If you need help monitoring labour costs, material costs, equipment, subcontractors, and more against project estimates, look no further.

Our job costing analysis allows you to identify truly profitable projects. We can identify cost overruns and other inefficiencies, ensuring you make the necessary adjustments/informed decisions on current and future bids to secure gross profit.

2. Retainage & Progress Billing

Retainage is standard practice in the construction industry. That portion of payment held back by your clients until you deliver can pose unique changes. As part of our accounting services, we help clients track and manage retainage, ensuring you complete projects without negatively impacting your cash flow. 

While at it, we also assist with creating and submitting progress billings, aligning with project milestones (in job sites), and contractual terms.

3. Cash Flow Management

Cash flow is a major problem for many contractors. This is particularly true for long projects operating during periods of fluctuating costs. 

We can offer specialised cash flow management services to help you forecast/anticipate material shortfalls, price fluctuations, among other major overhead expenses like equipment purchases that can affect cash flow and strain operations. Clients who choose this service avoid financial strain regardless of inevitable market risks. Click here to find out more.

4. WIP (Work-in-Progress) Reporting

WIP schedules are critical financial tools for construction contractors. They offer a snapshot of the company’s financial status regarding all ongoing projects. WIP schedules compare the estimated vs. actual costs to manage cash flow effectively. 

WIP reporting will help you identify potential losses early. You’ll also get important data required by lenders and bonding companies. Let’s help you analyse and prepare critical reports that maintain an accurate overview of your company’s financial standing at all times, from contract to contract.

5. Construction Audit 

Construction contractors must perform audits for a variety of purposes, like as bonding to tax requirements, financial requirements, or client requests. These audits can be time-consuming and daunting.

Whether it’s a routine audit or one meant to uncover financial irregularities/malpractice, we can organise and review all financial records, outstanding invoices/unpaid bills, change orders, contracts, financial statements, and other essential documents. 

Our construction audit services ensure compliance, prevent/identify malpractice, and make the reports more accurate. Do you need accounting experts to clarify any financial details to external auditors? We can do that as well.