How it runs for construction companies and contractors
Subcontractor payments are matched to waivers and 1099 records, and sales tax on materials is reviewed for each state. The result is a reconciled ledger with a WIP schedule your CPA, lender or surety can rely on, delivered in phases so current months stay current.
What is catch-up bookkeeping?
Catch-up bookkeeping is a one-time project that records and reconciles months or years of transactions that were never entered. The goal is a set of books where every bank, card and loan balance agrees with the statement and every period can be reported on. It ends when the backlog is current and reconciled, usually followed by ongoing monthly bookkeeping.
What we handle for construction companies and contractors
- Historic costs recoded to job, phase and cost type from source documents
- Retainage receivable and payable rebuilt from contract and pay-app records
- Subcontractor payments matched to waivers and cumulative 1099 totals
- Supplier statements reconciled to find unposted or duplicate bills
- Sales tax on materials reviewed by state and contract type
The KPI that matters here
Back months closed at an agreed pace with current-month posting kept within 7 days throughout.
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
Catch-up bookkeeping in other industries
Frequently asked questions
Can you recover job costing for jobs that are already finished?
Usually yes, from supplier invoices, subcontractor draws, payroll records and purchase orders that name the job. Where a document names no job, the accountant uses delivery addresses, dates and project manager confirmation. Some small items may end up in an unallocated pool, which is disclosed in the report rather than guessed onto a job.
How long does a construction catch-up take?
It depends on the number of months, jobs and transactions, and on how complete the source documents are. A contractor with a dozen jobs and a year of history is typically handled in monthly batches over several weeks, with a firm schedule agreed at the start. Pricing depends on volume and scope; get a custom quote within 1 business day.
Will the catch-up be ready for my tax preparer?
Yes, the finished catch-up includes reconciled bank, card and loan accounts, a fixed-asset schedule for equipment, retainage balances, 1099 vendor totals and a WIP schedule. We provide preparation support; your CPA or accountant reviews and signs the return. Open questions and missing documents are listed so nothing is assumed.
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