Archives for March 2025

Commercial contractors face numerous challenges that can keep them up at night, from cash flow worries to project delays. Modern accounting solutions—like QuickBooks, Sage 100 Contractor, Procore Financials, and other construction-specific software—can directly tackle these concerns. By automating financial tasks and providing real-time insights, these tools help contractors make informed decisions and stay competitive. Below is a breakdown of ten key business concerns for contractors and how accounting solutions, practical… Read More

In construction, estimates, budgets, and work-in-progress (WIP) reporting serve distinct but interconnected purposes in managing financials and project performance. Here’s a breakdown of their benefits: 1. Estimates An estimate is a forecast of the expected costs of a project, typically created before work begins. Benefits of Estimates: 2. Budgets A budget is a financial plan that allocates resources based on the estimate but is refined as the project progresses. Benefits… Read More

Managing long-term construction projects comes with its own set of financial challenges. Builders need clear, detailed reports to track progress, ensure profitability, and manage cash flow efficiently. These reports provide the financial transparency required for better decision-making and strategic planning. Here are five essential accounting reports that every builder working on long-term contracts should rely on: 1. Job Cost Report A job cost report provides a comprehensive breakdown of all… Read More

1. 𝑭𝒊𝒏𝒂𝒏𝒄𝒊𝒂𝒍 𝑺𝒕𝒂𝒕𝒆𝒎𝒆𝒏𝒕 𝑨𝒄𝒄𝒖𝒓𝒂𝒄𝒚 𝒂𝒏𝒅 𝑷𝒓𝒆𝒔𝒆𝒏𝒕𝒂𝒕𝒊𝒐𝒏 Sureties rely on accurate, transparent, and consistent financial statements to evaluate a contractor’s financial health. The key elements include: 👷🏾Work-in-Progress (WIP) Reporting 2. 𝐉𝐨𝐛 𝐂𝐨𝐬𝐭𝐢𝐧𝐠 𝐚𝐧𝐝 𝐂𝐨𝐬𝐭 𝐂𝐨𝐧𝐭𝐫𝐨𝐥 A robust job costing system is critical for accurate financial reporting and cost control: 👷🏾Detailed Cost Tracking 3. 𝐑𝐞𝐭𝐚𝐢𝐧𝐚𝐠𝐞 𝐚𝐧𝐝 𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 👷🏾 Retainage is the percentage of progress payments withheld until project completion, impacting… Read More

1️⃣ General Ledger & Chart of Accounts Setup✅ Define your chart of accounts (COA)— Set up accounts to track income, expenses, assets, liabilities, and equity. ✅ Create cost categories—organize expenses by materials, labor, equipment, subcontractors, and overhead. ✅ Automate bank reconciliation—Set up bank feeds and reconciliation schedules to track cash flow. 🎯 Outcome: A structured financial foundation for tracking all construction-related costs.2️⃣ Job Costing Workflow✅ Set up a job cost… Read More

A well-structured bookkeeping workflow ensures accurate financial tracking, compliance, and profitability for commercial construction businesses. Below is a streamlined process covering all key aspects: 1. Project Setup & Budgeting ✅ Create a New Project in Accounting & Project Management Software ✅ Enter Initial Budget & Cost Codes 2. Accounts Payable (AP): Managing Expenses ✅ Purchase Order (PO) & Vendor Setup ✅ Invoice Entry & Matching ✅ Payment Processing 3. Accounts… Read More