Job costing · WIP schedules · Progress billing · Contractor payroll · Lien waivers
Construction accounting where a miscategorized cost can undermine an entire project’s margin.
Construction accounting is project-based, not period-based. revenue is recognised as work is completed, not when invoiced. Pair job costing expertise with contractor payroll, subcontractor AP, or a dedicated staff engagement for contractor clients with active projects.
Job costing specifics
Why job costing is the foundation of every construction engagement.
Without accurate job costing, a construction company cannot know which projects are profitable, which are losing money, or why. every other financial metric in construction flows from the accuracy of the job cost ledger.
Direct costs must track to specific jobs — not expense categories
Labour, materials, equipment, and subcontractors are all direct costs that must be allocated to the specific job that incurred them. coding them to general expense accounts produces financials that look clean but tell the contractor nothing about project profitability.
Overhead allocation requires a documented method
Insurance, vehicles, yard costs, and project management overhead need to be allocated across active jobs using a consistent, documented methodology. unallocated overhead inflates apparent project margins and understates true project costs.
Estimated vs actual cost variance tells you where the project is going
The most valuable construction management report is the job cost variance report — actual costs vs estimated costs by cost code, updated monthly. it tells the contractor whether the project will finish on budget before it's too late to do anything about it.
WIP schedule — what it tells you
Contract valueTotal agreed contract amount
Estimated total costProjected cost to complete
% completeCost incurred ÷ estimated total
Revenue earned to dateContract value × % complete
Billed to dateActual progress billings issued
Over/under-billedRevenue earned vs billed variance
Estimated gross profitContract value − estimated total cost
An over-billed contractor has received more cash than they’ve earned. an under-billed contractor has earned more than they’ve received. both create financial statement distortions that affect bonding capacity and lender covenants.
Full service scope
Every construction accounting function your CPA firm’s contractor clients require.
01
Job costing & cost allocation
All direct costs coded to specific jobs by cost category — labour, materials, equipment, and subs. overhead allocation applied using your firm's approved methodology.
02
WIP schedule preparation
Monthly work-in-progress schedules prepared using percentage-of-completion method. over/under-billing calculated and posted as contract assets or liabilities.
03
Progress billing reconciliation
AIA G702/G703 billing reconciliations. retainage tracking and release management. schedule of values maintenance across all active projects.
04
Subcontractor & vendor AP
Subcontractor invoice processing with lien waiver tracking before payment release. vendor AP managed with project code allocation. 1099 preparation at year-end.
05
Contractor payroll
Prevailing wage payroll for public projects, certified payroll reports, union payroll with fringe benefit calculations, and multi-state payroll for contractors working across state lines.
06
Equipment & asset tracking
Equipment depreciation schedules, fleet maintenance cost tracking, and capital vs expense classification for tool and equipment purchases.
Other industries
Construction clients need accountants who understand WIP — not just the general ledger.
Book a call and describe your construction client base. We'll walk through exactly how job costing, WIP schedules, and progress billing are handled in our engagement.
Book a discovery callOr email us directly at accounting@nimblechapps.finance — no forms, no bots.
