Construction Company Accounting

• Construction accounting and bookkeeping, including monthly close, bank and credit card reconciliations, AP/AR processing, and balance sheet tie-outs.
• Controller services providing oversight of month-end close processes, payroll entries, fixed asset schedules, and account reconciliations.
• Construction CPA services for financial reporting, tax compliance, and strategy.
• Construction financial management solutions, including cash flow forecasting, budgeting, and financial reporting.
• Audit services, including financial statement audits, attestation, compliance audits, and Yellow Book/GAGAS audits to ensure accuracy, transparency, and regulatory compliance.

• Work-in-Progress (WIP) Reporting: Tracking project progress, revenue recognition, costs incurred, and profit margins over time to ensure accurate financial reporting.
• AIA Billing: Managing standardized invoicing processes involving detailed forms like G702 and G703, essential for larger-scale projects.
• Certified Payroll Reporting: Ensuring compliance with prevailing wage requirements for government-funded projects, such as Davis-Bacon Act compliance.
• Lender Reporting: Providing detailed financial statements, budgets, and compliance certifications to secure and maintain financing.
• Contract Compliance Reports: Monitoring adherence to budgets, timelines, and contract scope for complex projects.

FirmKey’s network partners are experienced in navigating these unique requirements, providing construction companies with tailored accounting solutions that address industry-specific challenges.

• Job costing for construction projects to determine profitability and improve cost tracking.
• Construction budgeting and forecasting to plan for growth and manage expenses.
• Financial reporting tailored to the needs of contractors, developers, and specialty subcontractors.
• Construction accounting software integration with platforms such as QuickBooks for contractors, Procore, Buildertrend, and more.

• Construction tax preparation and compliance for business and personal tax returns.
• Tax planning and strategy, including S-Corp election (Form 2553) and entity structuring.
• Construction tax services covering payroll processing, ADP/Trinet support, and management fee allocation.
• Construction audit services including financial statement audits, attestation, and Yellow Book/GAGAS audits.

• Construction cost tracking and revenue recognition for accurate financial reporting.
• Project-based accounting tailored to contractors, general contractors, and specialty subcontractors.
• Inventory and COGS systems for inventory tracking, SKU audits, and costing methodology.
• Due diligence and QofE reports, including proof of cash, net working capital analysis, and data books.

How is construction accounting different from regular accounting?

Regular accounting records revenue when a sale is made. Construction accounting spreads revenue and costs across the life of each project, so contractors track profitability job by job over months or years. It also requires specialized reporting like work-in-progress schedules, AIA billing, and certified payroll that standard accounting doesn’t use.

What is WIP (Work-in-Progress) reporting?

A WIP report shows the financial status of each ongoing project: costs incurred to date, revenue recognized, billings, and estimated profit. It tells contractors whether they’ve overbilled or underbilled a job and whether it’s tracking to budget, which is essential for accurate financial statements and lender reporting.

What is AIA billing?

AIA billing is a standardized invoicing method for construction projects using forms G702 and G703. It bills based on the percentage of work completed and is commonly required on larger commercial projects.

What is certified payroll reporting?

Certified payroll is a detailed weekly report required on government-funded projects to prove workers are paid the prevailing wage, as mandated by the Davis-Bacon Act and similar laws.