Job Costing
Job costing is the foundation of construction accounting. Without it, you're guessing at profitability. With it, you know exactly how much money each project is making, or losing, in real time.
We set up and maintain job costing systems that track labor, materials, subcontractor costs, equipment, and overhead against your original estimate. Every week, I review variances and flag jobs that are trending over budget before they eat your margin.
What proper job costing gives you:
- Real-time visibility into profit margins on every active job
- Early warning when costs exceed estimates
- Data to improve future bidding accuracy
- Proof of profitability for your surety and bank
- Clear picture of which types of work are most profitable
WIP Schedule Management
Your Work-in-Progress (WIP) schedule is the single most important document for your bonding company. It tells them (and you) the true financial position of every open contract. An inaccurate WIP can cost you bonding capacity, trigger surety concerns, or mask problems until it's too late.
We prepare and maintain WIP schedules monthly using the percentage-of-completion method. Each job is evaluated for estimated costs to complete, billings in excess or costs in excess, and projected final profit. These are management schedules supporting financial review. Any bank or surety requirements must be confirmed; formal compilation, review or audit reports are separate, and acceptance is not guaranteed.
Our WIP process includes:
- Monthly percentage-of-completion calculations on all open contracts
- Over/under billing analysis to identify cash flow implications
- Estimated cost-to-complete reviews with your project managers
- Management reports for discussion of bank or surety requirements
- Trend analysis to spot deteriorating jobs early
Financial Reporting
Generic financial statements don't work for contractors. You need reports that show job-level profitability, overhead allocation by project, and cash position relative to your billing cycle. We produce construction-specific financial reports that actually help you make decisions.
Monthly deliverables include:
- Income statement with job-level detail and overhead allocation
- Balance sheet with supporting schedules for financial review
- Job profitability summary (margin by project, by trade, by client)
- Cash flow statement with 90-day forward projection
- Accounts receivable aging with collection priority recommendations