Bookkeeping for construction businesses

In construction, cash and work rarely line up: the deposit arrives a month before work starts, part of the payment is held until the job is done, materials are bought for three projects at once. Bank-based bookkeeping shows the balance but doesn't answer the key question — which job makes money and which one eats your profit. What's included: • Job costing — materials, labor, subcontractors, equipment rental and permits are assigned to a specific project. You see the actual margin on every job against the estimate. • Work-in-progress (WIP) schedule — how much has been billed versus how much work is actually done on each contract. It shows over- and under-billings, and banks and surety (bonding) companies often ask for it. • Progress billing — by phase or percentage of completion, including AIA G702/G703 forms when the client requires them. • Retainage — amounts your client holds back until completion, and amounts you hold back from your subs, so this money doesn't get lost and is billed on time. • Subcontractors — collecting W-9s, tracking certificates of insurance (COI) and lien waivers, preparing 1099-NEC forms. • Crew payroll — payroll, and for public projects, certified payroll under the Davis-Bacon Act with prevailing wage (Form WH-347). • Insurance audit prep — payroll and subcontractor reports for the annual workers' compensation and general liability audits. • Taxes — the revenue recognition method for long-term contracts, sales tax on materials under your state's rules, the company's tax return.