Industries
Accounting & Tax Services for Construction Companies
Specialized accounting, bookkeeping, payroll, tax, and financial advisory services to help contractors manage project costs, improve cash flow, and understand the profitability of their construction projects.
Understanding the Financial Challenges of Construction Businesses
Construction companies operate in a financial environment where project costs, billing schedules, labor expenses, and cash flow must be managed simultaneously. A profitable contract on paper can become unprofitable when material prices increase, labor costs exceed estimates, or unexpected project expenses arise.
Accurate job costing and financial reporting are essential for understanding the profitability of individual projects and the overall business. Contractors must also manage progress billings, retainage, subcontractor payments, payroll, and financial reporting requirements that differ from those of many other industries.
At The Accounting Firm, we provide accounting, tax, payroll, and financial advisory services designed to support construction companies and contractors. We help businesses establish organized accounting systems, track project-related expenses, prepare financial reports, manage tax obligations, and develop financial strategies that support profitability and growth.
Whether you’re a general contractor, subcontractor, residential builder, or specialty trade business, our services can be tailored to your operations and financial objectives.
Common Challenges
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Tracking Job Costs and Profitability
Monitoring labor, materials, equipment, subcontractors, and overhead by project to identify cost overruns and understand job profitability.
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Managing Cash Flow and Retainage
Balancing payroll, materials, subcontractor payments, progress billings, and retainage while maintaining sufficient working capital.
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Work-in-Progress and Financial Reporting
Tracking project completion, costs incurred, billings, and estimated profitability to support financial reporting and management decisions.
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Payroll and Subcontractor Management
Managing payroll across jobs, allocating labor costs, tracking subcontractor payments, and meeting payroll tax and reporting requirements.
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Construction Tax Compliance and Planning
Addressing business taxes, sales and use tax on materials, equipment purchases, multistate operations, and construction-related tax planning opportunities.
How We Help
The Accounting Firm provides accounting and financial services designed to help construction businesses maintain accurate records, understand project profitability, and manage their financial responsibilities.
Our bookkeeping services help contractors maintain organized financial records, reconcile accounts, track project expenses, and manage accounts payable and receivable. Through our QuickBooks Online services, we can help establish accounting systems designed to track project costs and support construction financial reporting.
Our payroll administration services assist with employee payroll, payroll tax filings, labor cost accounting, and contractor reporting. We also provide tax preparation and tax planning services to help construction business owners manage tax obligations, evaluate equipment purchases, and plan for future financial decisions.
For businesses requiring more advanced financial reporting, our Controller Services can support month-end closing, work-in-progress reporting, job profitability analysis, and internal controls. Our CFO Services provide additional support for cash flow forecasting, project budgeting, financing, and strategic financial planning.
We also assist with construction-related sales and use tax matters through our State & Local Tax Services.
Financial Support Built Around Construction Projects
- Job Costing & Project Profitability — Tracking labor, materials, subcontractor expenses, equipment costs, and overhead to help evaluate project performance.
- Work-in-Progress & Contract Reporting — Preparing work-in-progress (WIP) schedules, applying appropriate percentage-of-completion accounting methods, tracking progress billings and retainage, and analyzing over- and under-billing to help contractors understand project performance and support financial reporting.
- Construction Payroll & Subcontractor Reporting — Payroll processing, payroll tax filings, labor cost allocation, subcontractor payment tracking, and applicable employee and contractor tax reporting.
- Cash Flow, Budgeting & Growth Planning — Developing project budgets, cash flow forecasts, financial projections, and financial information for financing and expansion decisions.
Our Approach
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Understand Your Construction Operations
We review the types of projects you undertake, your billing arrangements, accounting systems, financial reporting needs, and business objectives.
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Evaluate Your Job Costing & Accounting Processes
We assess how project costs, subcontractor payments, payroll, progress billings, and retainage are recorded and reported.
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Implement Accounting & Financial Solutions
We provide agreed bookkeeping, payroll, tax, financial reporting, and advisory services tailored to your construction business.
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Support Profitability & Business Growth
We help management evaluate project profitability, monitor cash flow, review financial performance, and plan for future opportunities.
Frequently asked questions
Can you help construction companies track job costs in QuickBooks Online?
Yes. We can help construction businesses configure QuickBooks Online to track project-related costs, including labor, materials, subcontractor expenses, and other job costs. We also assist with organizing accounting procedures and financial reports to help owners understand project profitability.
What is a work-in-progress (WIP) schedule, and why is it important?
A work-in-progress schedule tracks the financial status of ongoing construction contracts, including contract values, estimated costs, costs incurred, billings, and expected profitability. WIP reporting helps contractors identify over- and under-billing, monitor project performance, and provide financial information commonly requested by lenders and surety companies. Our Controller Services can assist with preparing and analyzing WIP schedules.
What accounting and tax challenges are common for construction businesses?
Construction companies often face challenges involving job costing, progress billing, retainage, subcontractor payments, payroll, equipment purchases, and sales and use tax on construction materials. Our accounting, payroll, and tax services help contractors address these responsibilities while maintaining organized financial records.
Related services
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Bookkeeping
Reliable bookkeeping and financial reporting that give you clarity, confidence, and more time to focus on your business. -
Payroll Administration
Reliable payroll services that simplify payroll management, support compliance, and give you more time to focus on your business. -
QuickBooks Online
Professional QuickBooks Online setup, cleanup, training, and support to help your business maintain accurate records and make better financial decisions. -
Tax Preparation
Professional federal and state tax preparation for individuals, businesses, and nonprofit organizations, with careful attention to accuracy, compliance, and your financial circumstances. -
Tax Planning
Strategic tax planning for individuals and businesses, combining detailed tax projections, personalized recommendations, and proactive strategies to help you make informed financial decisions and manage your tax obligations. -
Controller Services
Strengthen your accounting operations with professional financial reporting, month-end closing procedures, and internal controls—without the expense of hiring a full-time controller. -
CFO Services
Strategic financial leadership to help your business plan for growth, manage cash flow, improve profitability, and make informed financial decisions—without the cost of a full-time CFO.
Know Where Every Job Stands
From job costing and payroll to tax planning and financial reporting, our accounting and advisory services help construction businesses manage their finances and plan for profitable growth.