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As an ACCA-qualified accountant specializing in the construction industry, I’ve worked with hundreds of general contractors and I am capable of witnessing how poor books can derail even the smartest contractor. Based on my experience, here are actionable and tested bookkeeping strategies to keep your books organized, compliant, and updated all the time.

1-Make use of job costing.

Job costing is a tested model to track and monitor project performance. If you fail to appropriately allocate project specific cost/overheads, you fail to assess actual project cost which leads to administrative failure in terms of project profitability.

 So, there is a need to make sure each transaction in the bank is allocated to each project.

This can be easily achieved if you implement cloud-based accounting software like QuickBooks online, Xero, and Wave. When you sync transactions from bank, there is an option to allocate transaction to the project. It’s really helpful feature enabling us to accurately calculate project profitability via initial data entry.

Helpful tips

• Use bookkeeping/accounting software like QuickBooks online.
• Keep monitoring the project profitability dashboard.
• Don’t forget to allocate overheads using ABC costing.
• Keep a separate bank account for each project (if possible).

80% of general contractors found it helpful to open separate bank accounts for each job under consideration.

2-Weekly reconcile project-specific reports to accounting books

Prepare Excel for each project. In Excel, list the breakdown of budget, change orders, and expenses incurred to date on the project. Make sure to weekly reconcile the project sum in Excel with the numbers in accounting books. It helps ensure your Excel reports are accurate.

Additional helpful tips

• Use weekly report Excel templates for project control.
• Ensure item listing in the Excel template is the same as a chart of accounts in the accounting books.

3-Make sure to use a construction-specific chart of accounts

Please do not use a generic chart of accounts like “capitalized cost”. Instead, create a construction-specific chart of accounts like retention receivable, sub-contractor payable, demolition, framing, HVAC, plumbing, etc.

Addition helpful tips

• Import construction-specific chart of accounts in the accounting software.
• Maintain separate accounts for retention receivable and accounts receivable.

4-Learn the art of progressive billing.

Keep an eye on construction progress and billing. A good idea is to bill in phases like,

1. 20% deposit
2. 50% in mid
3. 30% in the end

Make sure to use AIA contracts for compliance purposes (were applicable).

Helpful tips

• Use accounting software for progressive billing.
• Don’t forget to account for retention.

5-Outsource your bookkeeping

I’ve witnessed smart and experienced contractors getting confused when keeping their books. Construction bookkeeping is not straightforward business, it’s more challenging and more dynamics than other businesses.

In reality, there are multiple aspects where non-accountants get confused and even make a blunder that costs thousands.

So, it’s good idea to handover your books to reliable & experienced construction accountants and focus on construction instead.

Who we are?

We are specialized construction bookkeeper/accountant helping general contractors, roofing contractors, real estate developers and builders to keep their accounting books in order.

Founded by an ACCA-qualified accountant with 10 years of construction industry experience, we understand the challenges of project-based accounting, CIS compliance, and job costing.

Why Us?

• Construction Expertise
• ACCA-qualified & experienced team
• Actionable Insights
• Highly affordable price
• Available in your time zone
• Remote team

We combine industry-specific knowledge with modern tools to help you build a stronger financial foundation. Focus on your projects—we’ll handle the numbers. Let’s get connected!