Accounting for Construction Companies

The Price Was Agreed

Then the Job Needed Another Week

The machine was meant to leave on Thursday. It stayed another week. The crew worked around a delay, and extra work was approved on site. You kept things moving. Now you're invoicing. Have those changes made it past the site notes?

Did the extra labour and machine hours reach the right job?
Have we billed every approved change order?
How much is still sitting in holdbacks and unpaid invoices?
Are subcontractor payments recorded and reported properly?
Would we use the same allowances for the next quote?

Another quote is waiting. We help check where this job's costs changed and what still needs billing before you use it to price the next one.

That Extra Week Has to Go Somewhere

A $5,000 Cost Can Take a Quarter of the Job's Gross Profit

Say you priced a $100,000 job with $80,000 in direct costs. You expected $20,000 in gross profit. The extra week adds $5,000 in labour and equipment hire. Unless the billing changes too, gross profit falls to $15,000.

The invoice still says $100,000. The job leaves 25% less gross profit. Those extra days belong in the next estimate. And that $15,000 isn't necessarily in your account. Some may still be in accounts receivable or a holdback. In the construction industry, a profitable job can leave you waiting for the money to start another.

Let's Follow That Job Through

Construction Accounting Services That Help Explain What Changed

Concrete, excavation, roofing or site preparation: we start with how you quote, buy and bill. Our accounting for construction companies follows project costs through bookkeeping, payroll and tax, then helps you use those numbers when planning the next contract.

First, Account for the Extra Week

Bookkeeping and Job Costing

The hire invoice includes that extra week. Does your job report show it? We match labour, material costs and subcontractor bills to your construction projects, with a consistent approach to direct and indirect costs. You can compare expected costs with actual costs.

See Bookkeeping Support

Then Check the Tax Behind the Billing

Corporate Tax, GST/HST and Equipment

That job also feeds your tax file. We prepare corporate returns and financial statements, review equipment purchases, and check GST/HST on progress billing and holdbacks, eligible input tax credits and applicable BC PST requirements.

See Corporate Tax Support

Those Hours Also Belong in the Pay Run

Payroll, Owner Pay and T-Slips

The crew still needs paying for that extra week. We help with wages, payroll deductions, CRA remittances and T4/T5 slips, alongside salary or dividends for you. Subcontractor invoices get their own review, including applicable T5018 reporting requirements.

See Payroll and T-Slip Support

And You Need to Take Something Home

Personal Tax and Finances for Construction Owners

Once the crew is paid, what can you take home? We review owner pay and shareholder records alongside household needs. Personal tax support is available through our Nosehill office or a trusted partner, with the work and fee confirmed first.

See Personal Tax Support

Now Look at the Next Start Date

Cash Flow Forecasting and Financial Management

The next job may need materials before this one pays. We build cash flow forecasts around receipts, holdbacks, supplier bills, payroll and tax. Then we test another crew or equipment purchase against the cash needed to deliver projects already underway.

See Advisory Services

Use the Answers While They Still Help

What Would You Change Before Taking On the Next Job?

If you're quoting similar work next Tuesday, you need to understand this job now. With agreed ongoing support, we help construction companies use financial reporting while billing, budgets and hiring decisions can still change.

What you're trying to work out	How TNA helps you check it
Can we use the same price next time?	Compare estimated and actual job costs, including late bills, before repeating the allowances.
Which construction projects are worth repeating?	Review project profitability and profit margins by job, including an agreed share of overhead costs.
Why is cash tight when the reports show a profit?	Check accounts receivable, holdbacks and upcoming payments against the balance sheet and cash flow forecast.
Can we afford another machine or crew?	Test wages or debt financing repayments against current contracts, including what happens if a client pays late.
Why doesn't the invoicing match the work done?	Review progress billing, project progress and revenue recognition against the accounting basis used for your reports.

You Can Start Before the Books Are Finished

Tell Us Where the Numbers Stopped Making Sense

1. Start With What You Want to Work Out

Maybe work is steady, but the bank balance keeps catching you out. Send a short message about what's happening and any tax date or contract decision coming up.

2. We Work Out What Needs Checking

We'll ask who keeps your financial records and which construction accounting software you use. If you already have a bookkeeper, we discuss their role and which financial processes need our support.

3. Know the Work and Fee Before We Start

We agree on the construction accounting services, reporting schedule and fixed fee. You'll know what's covered, what we need from you and who to contact before the work begins.

TALK TO A TNA ACCOUNTANT

Helpful, patient and knowledgeable

It's always a pleasure dealing with our year end at our firm. True North is always so helpful, patient and knowledgeable. Matt and Curtis are always great to deal with, but the whole team is always helpful and great to deal with. I would absolutely recommend them for anyone looking for accounting services for their small business.

Javier

Makes the difficult conversation of taxes and running a small-business easy

True North Accounting makes the difficult conversation of taxes and running a small-business easy. I cannot thank the staff at True North, particularly their accountant Curtis, enough for their willingness to share their knowledge and expertise in a clear and concise way. As a young business owner with many questions to ask, I can say with confidence that True North genuinely cares about their clients, prospective or existing. Kudos to True North!

Ryan G.

Very professional, accommodating and prompt to address any questions

All the folks at True North have always been very professional, accommodating and prompt to address any questions or concerns we've have about our small business financials. I would recommend True North to anyone looking for financial services.

Darren

Before You Get in Touch

Questions About Accounting for Construction

When should I hire a construction accountant?

Construction accountants can help when job costs, holdbacks, payroll or tax dates take time away from running your business. You can ask for help while the books are behind. TNA helps incorporated construction business owners work out what needs checking, which support fits and what it will cost.

Is construction accounting software enough on its own?

Construction accounting software helps track financial transactions across multiple job sites, but someone still needs to check the entries. Construction software cannot explain a missing invoice. We review the setup and records so your reports include the project costs you need to make decisions.

Should my construction business use cash or accrual accounting?

Construction businesses generally need the accrual method for income tax: income is recorded when earned and allowable expenses when incurred. The cash method has limited exceptions. We review your accounting methods and construction contracts so unpaid invoices and bills receive the right treatment.

How do I know if my job costing is accurate?

Accurate accounting puts labour, materials, equipment and subcontractor bills against the right job, with overhead costs allocated consistently. Compare the estimate with actual costs and check for late invoices or missing hours. Those checks help reveal cost overruns before you repeat the same quote.

When does revenue recognition need a closer look?

Review revenue recognition when long-term contracts cross year-end or progress billing differs from the work done. We check project progress, costs and holdbacks against the reporting basis your financial statements use. Income tax and GST/HST timing are reviewed separately from the job's cash flow.

What should I ask before choosing an accounting firm?

Ask how the professional accounting firm handles project-based accounting for construction clients, including job costs, payroll and tax. Find out who reviews the reports, how often you'll talk and what the fee covers. The answers should show how the team will help you manage cash flow and plan ahead.

ACCOUNTING FOR CONSTRUCTION COMPANIES

You Quoted the Job for a Profit. Did It Leave You One?

The crew has moved on. Then the extra machine hire and the last subcontractor bill arrive. TNA connects job costing, bookkeeping, payroll and tax so you can see what the work earned before using those allowances in another quote.

• CPA-led construction accounting support • Job costing and financial reporting • Payroll and subcontractor records • Corporate CRA support within scope • Fixed fees agreed before work begins