Construction
Job costing that tracks every dollar by project. Know which work makes money and bid future jobs based on real numbers instead of guesses.
The Industry
Construction is a cash-hungry business. You front money for materials, pay your crew every week, and wait 30 to 60 days for the customer to pay. A general contractor finishing a $75,000 project might have $50,000 out the door before seeing any payment. That gap between spending and collecting creates constant pressure, even when the work is profitable on paper.
The accounting challenge is that every job needs its own profit and loss statement. Lumber purchased for the Jones project cannot get mixed with the materials for the Smith renovation. Labor hours need allocation to specific jobs. Subcontractor invoices need tracking by project. Without this separation, you cannot tell which jobs made money and which ones quietly lost it.
Who This Covers
Who This Covers
General contractors, roofers, painters, flooring installers, fence builders, and remodelers. Any construction business in Metro Detroit that bids projects, buys materials, and manages crews or subcontractors.
What Makes It Complex
What Makes It Complex
Job costing that requires tracking every expense by project. Cash flow timing where you pay out before you collect. Subcontractors who need W-9s and 1099s. Change orders that get agreed to verbally but never invoiced. Seasonal work patterns in Michigan that create uneven income throughout the year.
What We Handle
Job costing is the foundation of construction accounting. Every material purchase, every labor hour, and every subcontractor invoice gets coded to a specific project. We set up QuickBooks with job tracking enabled so you can see profitability by project, not just overall. When you finish a job, you know exactly what it cost and whether your estimate was accurate.
We handle the compliance details that create problems at year-end. Subcontractor W-9s get collected before payments go out. 1099s get filed in January without the scramble. Payroll for your crew runs on schedule with proper tax withholdings and deposits. Your books stay clean throughout the year instead of needing a major cleanup before tax season.
Job Costing and Financial Tracking
Job Costing and Financial Tracking
Every expense coded to a specific job. Labor, materials, subcontractor payments, permits, equipment rental. QuickBooks configured for construction with project tracking. Monthly reports showing job profitability compared to estimates. Historical data that tells you what similar jobs actually cost.
Payroll and Compliance
Payroll and Compliance
Crew payroll processed weekly or bi-weekly with accurate overtime calculations. Tax withholdings and deposits handled automatically. Subcontractor W-9 tracking and 1099 filing at year-end. Proper expense categorization so your tax preparer has clean records.
Common Problems
Contractors often think they know which jobs are profitable based on the final check. But without tracking expenses by project, that $8,000 check from a roofing job might actually represent a $2,000 profit or a $1,500 loss depending on how materials, labor, and callbacks added up. You finish the job feeling good, cash the check, and have no idea whether you should bid similar work at the same rate or raise prices.
The other common problem is cash flow confusion. Deposits from new projects get used to finish old ones. This works until it doesn’t. Without clear visibility into what you owe, what you’re owed, and what each job actually costs, you can run out of cash even when the work is steady. Tax season arrives and you owe more than expected because nobody set aside money for quarterly estimates.
Jobs That Lose Money Quietly
Jobs That Lose Money Quietly
Materials charged to the wrong job or lumped into general expenses. Labor hours not tracked by project. Change orders completed but never added to the invoice. You cannot improve your bidding if you don’t know what jobs actually cost.
Cash Flow and Tax Surprises
Cash Flow and Tax Surprises
Using new deposits to cover old job expenses without tracking it. Quarterly estimated taxes not calculated or paid. Year-end arrives and you owe $15,000 that wasn’t set aside. Subcontractor 1099s require chasing down W-9s in January instead of collecting them upfront.
What Changes
You start bidding based on actual numbers. When someone asks for a quote on a kitchen remodel, you pull up the last three similar projects and see exactly what they cost. Materials, labor, permits, unexpected issues. Your estimates reflect reality instead of optimism. You stop underpricing work and wondering why the profit never materializes.
Financial clarity changes how you make decisions. You can see which project types are worth pursuing and which ones you should price higher or avoid. When you need equipment financing or a line of credit, you have clean financials to show the bank. You spend your time running projects instead of sorting through receipts and hoping the numbers work out.
Bidding With Confidence
Bidding With Confidence
Historical job cost data shows what work actually costs. Your estimates include realistic allowances for materials, labor, and the issues that always come up. You stop taking jobs that feel profitable but aren’t. Future bids are based on data, not hope.
Financial Clarity for Growth
Financial Clarity for Growth
Clean books that show real profitability by job type. Reports that help you decide whether to hire another crew member or buy new equipment. Bank-ready financials when you need financing. Time back in your week because the bookkeeping is handled.
Metro Detroit's Small Business Bookkeeper
The Next Step:
A Short Conversation
Tell us about your business and your current bookkeeping situation. We'll listen, answer your questions, and give you a clear quote.
