How it runs for construction companies and contractors
Buildertrend, Procore, Bill.com and your payroll provider are connected and the sync is tested. Where you run Xero, tracking categories and Dext are set up the same way. Opening balances are loaded from reconciled figures.
What is accounting software setup and migration?
Accounting software setup is the configuration of a new ledger: chart of accounts, tax codes, bank feeds, items, users and apps. Migration is moving existing books from another platform or spreadsheet into that ledger so history, open items and balances carry across. Both end with a file that agrees to the old records and is ready for live posting.
What we handle for construction companies and contractors
- Chart of accounts with cost-of-revenue sections by cost type
- Cost-code list matched to your estimating template and field app
- Projects or classes configured per job with retainage and WIP accounts
- Buildertrend, Procore, Bill.com and payroll connections tested
- Opening balances loaded from reconciled statements and contract records
The KPI that matters here
Setup complete with a tested job-cost report and reconciled opening balances before the first live month.
Construction compliance notes
Sales tax on materials
In most US states a contractor pays sales tax on materials at purchase and does not charge tax on the finished job. A few states, including Arizona and Washington, tax the contract itself, and many states have separate rules for repair work versus new construction. We set up tax codes per state and contract type and track exempt purchases with resale or project certificates on file.
Retainage
Retainage withheld by owners is recorded as retainage receivable, and retainage you withhold from subcontractors is recorded as retainage payable. Several states cap retainage on public work, commonly at 5%, and set release deadlines after completion. We track the release date per contract so closeout billing goes out on time.
Job costing and WIP
Bonding companies and lenders expect a work-in-progress schedule that ties to the general ledger, with contract value, costs to date, estimated cost to complete and billings to date. We maintain the schedule monthly and book over and under billing entries so the P&L reflects percentage of completion.
CIS in the UK
Under the Construction Industry Scheme, UK contractors deduct 20% from registered subcontractors and 30% from unregistered ones, and file a monthly CIS return with HMRC. We verify subcontractors, prepare the deduction statements and CIS return workings, and reconcile deductions suffered against your PAYE liability. Your accountant or the business submits the return.
Construction software we work in
- QuickBooks Online
- QuickBooks Desktop
- Xero
- Bill.com
- Gusto
- Sage 50
- Buildertrend
- Procore
- All 50 platforms
More for construction companies and contractors
Other services for construction
Software setup and migration in other industries
Frequently asked questions
Should a contractor use QuickBooks Online projects or classes for jobs?
Projects are usually the better fit for job costing in QuickBooks Online because they group income, costs and time per job and support job profitability reports. Classes remain useful for divisions or locations. A combination works for larger contractors, and the accountant recommends a structure based on the number of jobs and the reporting you need.
Can you migrate from QuickBooks Desktop Contractor edition to Online?
Yes, the migration moves lists, balances and history, and the accountant rebuilds job structures, cost codes and retainage accounts that do not transfer cleanly. Reports are compared before and after so nothing is lost. Where Desktop features have no Online equivalent, an alternative is set up before cut-over.
How do you set up sales tax on materials in the file?
Tax codes are configured per state and per contract type so materials bought for taxable jobs, exempt projects and resale are handled correctly. Resale and project exemption certificates are stored with the vendor or job record. The accountant reviews use-tax exposure monthly where materials are purchased tax-free but used on taxable work.
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