--- title: "Monthly financial reporting for construction companies & contractors" description: "Monthly financial reporting for construction companies & contractors: monthly P&L, balance sheet, cash flow, budget-vs-actual and plain-English commentary." url: https://ledgerbpo.com/industries/construction/financial-reporting/ updated: 2026-09-11 publisher: LedgerBPO (SS Support Network LLC) language: en-US --- # Monthly financial reporting for construction companies & contractors Outsourced financial reporting for construction companies & contractors turns job-costed books into decisions on bidding, staffing and equipment. Your accountant prepares job profitability by phase, gross margin by project manager and by trade, backlog and burn rate, and a cash forecast that models draw timing and retainage releases. Overhead is allocated so each job carries its share, and estimate-versus-actual variances are explained rather than just listed. - Since 2020 - US · UK · CA · AU - Named accountant plus backup - Your software, no lock-in [Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Updated September 2026 ## 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](https://ledgerbpo.com/software/quickbooks-online/) - [QuickBooks Desktop](https://ledgerbpo.com/software/quickbooks-desktop/) - [Xero](https://ledgerbpo.com/software/xero/) - [Bill.com](https://ledgerbpo.com/software/bill-com/) - [Gusto](https://ledgerbpo.com/software/gusto/) - [Sage 50](https://ledgerbpo.com/software/sage-50/) - Buildertrend - Procore - [All 50 platforms](https://ledgerbpo.com/software/) ## More for construction companies and contractors Other services for construction - [Bookkeeping](https://ledgerbpo.com/industries/construction/bookkeeping/) - [Invoicing and billing](https://ledgerbpo.com/industries/construction/invoicing-and-billing/) - [Accounts receivable](https://ledgerbpo.com/industries/construction/accounts-receivable/) - [Accounts payable](https://ledgerbpo.com/industries/construction/accounts-payable/) - [Bank reconciliation](https://ledgerbpo.com/industries/construction/bank-reconciliation/) - [Month-end close](https://ledgerbpo.com/industries/construction/month-end-close/) - [All construction services](https://ledgerbpo.com/industries/construction/) Financial reporting in other industries - [Marketing agencies & consultancies](https://ledgerbpo.com/industries/agencies/financial-reporting/) - [Auto repair shops & dealerships](https://ledgerbpo.com/industries/auto/financial-reporting/) - [Behavioral health practices](https://ledgerbpo.com/industries/behavioral-health/financial-reporting/) - [Daycares, schools & education](https://ledgerbpo.com/industries/childcare-education/financial-reporting/) - [The full financial reporting page](https://ledgerbpo.com/services/financial-reporting/) ## 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. Next step ## Books closed. Invoices paid. Every month. Tell us what is going on with your books or billing. You will hear from a named person within 1 business day, with a custom quote and a plan for the first close. - Reply from a named person within 1 business day - No setup fee, month-to-month - Your software, your data, no lock-in Start with a custom quote [Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Or call [+1-657-777-0006](tel:+16577770006) during US, UK or Australian business hours. --- Source: https://ledgerbpo.com/industries/construction/financial-reporting/ · Contact: https://ledgerbpo.com/contact/ · Full site map for agents: https://ledgerbpo.com/llms.txt