Contractors, subcontractors and trades run on jobs that span months, billing that does not match the work, and margins that hide until the job closes. Accounting built around WIP and job cost shows which work actually makes money while there is still time to act on it.
Labor, materials, equipment and subs coded to the job they belong to, so every project has a real margin rather than a guess made at the end.
Costs to date against billings and estimates to complete, reviewed every period, with the entry that brings revenue in line with work performed.
Retainage tracked as its own receivable, progress billings reconciled, and the aging kept honest so you know what is collectible now.
Accrual statements and WIP schedules prepared in the format sureties and banks typically ask for, so the quality of the books isn’t what holds back bonding or credit.
Fixed asset schedules, depreciation, and the tax decisions on large purchases planned before the equipment is bought, not after.
HVAC, plumbing, electrical, roofing and other home service companies mix quick service calls with larger install and replacement projects. The books need to handle both.
Short service tickets and longer installs tracked separately, so you can see which side of the business is carrying the margin.
Hourly, flat-rate and commission pay run through payroll correctly, with revenue and gross profit reported per technician.
Service agreements paid up front recognized as the visits happen, not all at once when the cash comes in.
Fleet costs, parts stocked on trucks and warranty callbacks tracked so vehicle and material costs do not disappear into overhead.
Estimated margin at bid against current projected margin, so fade shows while the job is still running.
Overbilled or underbilled across open jobs. Heavy overbilling means cash is ahead of the work.
Contracted revenue not yet earned, and the gross profit it carries.
Payroll taxes, insurance and benefits as a share of wages, so bids price labor at its true cost.
Each of these is supported every month by a workpaper that ties the balance to a source document, so the number can be trusted and followed by anyone who reviews it.
Aged by job and reconciled to billings, with retainage shown separately so the collectible balance is clear.
Costs and estimated earnings in excess of billings, supported job by job by the WIP schedule.
Billings in excess of costs and estimated earnings, carried as a liability until the work catches up.
Subcontractor and supplier costs incurred but not yet invoiced, so each month carries its real cost.
Percentage of completion, completed contract and other methods may be available depending on contract length and business size. The choice changes when income is taxed and can differ from the method used on your statements.
Large purchases can often be expensed in the year bought instead of depreciated over time. Whether that is right depends on this year’s income and the next few years.
Jobs outside your home state can create income tax, payroll and contractor registration obligations there.
W-9s collected before the first payment, 1099s filed on time, and classification reviewed for workers who look more like employees.
General information, not advice for your specific situation. Call 239-896-6799 to talk through yours.
A short conversation is usually enough to find out how I can help you and your business.
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