How it runs for construction companies and contractors
Reports are built from reconciled ledgers in QuickBooks Online or Xero and delivered on a fixed calendar. Sureties, lenders and partners receive consistent statements, and the owner receives a plain-English note on what changed and why.
What is outsourced financial reporting?
Outsourced financial reporting means a remote accounting team prepares your periodic financial statements and management reports instead of an in-house controller. The team works from your own accounting file, applies a consistent close and review process, and issues a report pack on a fixed date each month. You keep the data, the software and the decisions.
What we handle for construction companies and contractors
- Job profitability by phase with estimate-versus-actual variances explained
- Gross margin by project manager, trade and customer
- Backlog and monthly burn rate from the WIP schedule
- Cash forecast modeling draw timing and retainage releases
- Overhead allocation rates reviewed each quarter
The KPI that matters here
Job profitability and cash forecast delivered within 2 business days of the close each 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
Financial reporting in other industries
Frequently asked questions
Which reports matter most for a contractor?
Job profitability with estimate-versus-actual by cost type, the WIP schedule with over and under billings, backlog, aged receivables with retainage shown separately and a cash forecast built on draw dates. Together they answer whether current jobs are on margin, how much work is already sold and whether cash covers payroll through the next funding cycle.
How do you allocate overhead to jobs?
Overhead such as office rent, estimating salaries and general insurance is allocated using a rate you approve, commonly a percentage of direct labor or of total direct cost. The rate is reviewed each quarter against actual overhead so it neither over nor under burdens jobs. Fully burdened job margins then match what you should be bidding.
Can you produce statements in the format my surety requests?
Yes, we prepare the schedules sureties commonly request, including the WIP schedule, completed contracts schedule, backlog and aged receivables, alongside the P&L and balance sheet. Where your surety requires CPA-reviewed statements, our reconciled books and schedules are handed to your CPA so their work starts from clean numbers.
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