How it runs for construction companies and contractors
Credit cards used by superintendents are reconciled with receipts coded to jobs. Every account is reconciled monthly and exceptions are listed with an owner, so the cash balance on your reports is one you can trust.
What is a bank reconciliation service?
A bank reconciliation service compares the transactions in your accounting software with the transactions on your bank and credit-card statements and explains every difference. The goal is a ledger balance that agrees with the statement after timing items such as outstanding checks and deposits in transit. Done monthly, it catches missing entries, duplicates, bank errors and fraud early.
What we handle for construction companies and contractors
- Deposits matched to individual pay apps net of retainage and deductions
- Line-of-credit draws and repayments reconciled to lender statements
- Superintendent credit cards reconciled with receipts coded to jobs
- Outstanding subcontractor checks tracked and voided when stale
- Equipment loan principal and interest split each month
The KPI that matters here
Every bank, card and loan account reconciled within 5 business days of the statement date.
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
Bank reconciliation in other industries
Frequently asked questions
How do you match a lump-sum deposit to several pay apps?
The accountant pulls the remittance from the general contractor or the lender's draw notice and applies the deposit across the pay apps it covers. Retainage withheld and any back charges are posted to their own accounts rather than left as an unexplained difference. If no remittance arrives, we request it under your name before the reconciliation closes.
Do you reconcile the line of credit and equipment loans?
Yes, the line of credit is reconciled to the lender statement, including interest and fees, and each equipment loan is split between principal and interest from the amortization schedule. This keeps the balance sheet accurate for your surety and lender. Covenant figures such as working capital are reported from reconciled balances.
What happens to a subcontractor check that never clears?
Outstanding checks are listed on the reconciliation with their age. After a set period you approve, the accountant contacts the payee under your name, reissues or voids the check and posts the adjustment. Stale checks are also reviewed against state unclaimed-property rules, which your accountant flags for your CPA.
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