Construction Accounting Built Around How Your Jobs Actually Work
Most bookkeeping tells you how the business did last quarter. We help you track which jobs are making money right now — so you can act on it while you still can.
Job Costing and WIP Schedules: The Numbers That Actually Run a Contracting Business
Construction accounting is a different discipline than general business bookkeeping. A standard profit-and-loss statement won't tell you that one job is bleeding margin while another is running ahead of budget. Job costing does. We set up your accounting structure to track revenue, costs, and profitability by individual project — so you're not waiting until year-end to find out where you stood.
Work-in-progress schedules are equally essential. A WIP schedule captures where each job is in its billing cycle, how much revenue has been earned versus billed, and whether you're overbilled or underbilled across your portfolio. Without one, cash flow feels unpredictable because it is — and the underlying cause stays hidden. With one, you have a real-time picture of where every active job stands.
We build and maintain these tools for contractors across Alabama, including clients on the Eastern Shore and throughout the Mobile area, so the financial side of your business keeps pace with the field side.
Bonding-Ready Financials and Retainage Tracking That Hold Up Under Scrutiny
Banks and surety companies evaluate contractors differently than other businesses. They want to see properly prepared financial statements, a clean WIP schedule, and evidence that your accounting reflects how construction revenue actually works — including retainage. If your books aren't set up to reflect retainage correctly, your financials can misrepresent both your cash position and your project completion status.
We prepare the financial statements and supporting schedules that bonding companies and lenders expect to see. That includes:
- WIP schedules formatted for surety review
- Retainage receivable and payable tracked separately from standard accounts
- Percentage-of-completion revenue recognition applied consistently
- Financial statements that accurately reflect project-level performance
When you walk into a bonding meeting or a loan application, the goal is to be prepared — not to be explaining why your numbers look the way they do.
Tax Planning and Compliance for Contractors
Construction businesses carry tax complexity that general practitioners often underestimate. Equipment purchases, depreciation elections, subcontractor classification, and the timing of income recognition under long-term contract rules all have meaningful tax consequences. Getting these right requires someone who understands how construction revenue and costs flow — not just how to file a return.
We work with contractors year-round, not just at tax time, to make sure the decisions made in the field and in the office are reflected in a tax strategy that holds up. That includes planning around major equipment acquisitions, reviewing how your entity structure fits your growth stage, and staying current on Alabama-specific considerations that affect contractors in our region.
Got a Question? We Have Answers
Common Questions from Alabama Contractors
What is a WIP schedule and why does my contracting business need one?
A work-in-progress schedule is a financial report that tracks every active job — how much revenue has been earned, how much has been billed, and whether each project is overbilled or underbilled at any given point. Contractors need one because standard financial statements don't capture the timing gaps between when work is performed and when it's invoiced. Without a WIP schedule, your cash position and profitability can look very different from what's actually happening on your jobs.Why isn't regular bookkeeping enough for a construction business?
General bookkeeping tracks money in and money out at the company level. Construction businesses need job costing, which tracks revenue and expenses at the individual project level. Without job costing, you won't know which jobs are profitable and which are losing money until the work is done and the damage is already locked in. Job costing gives you that visibility while you can still make adjustments.What are bonding-ready financial statements?
Bonding-ready financials are prepared specifically to meet the standards surety companies use when evaluating a contractor's capacity and creditworthiness. They typically include a properly formatted WIP schedule, accurate retainage accounting, and financial statements that apply percentage-of-completion revenue recognition. A surety underwriter reviewing these documents needs to trust that the numbers reflect how your business actually operates — not just that the totals balance.How does retainage accounting work and why does it matter?
Retainage is the portion of each payment that an owner or general contractor withholds until a project reaches substantial completion — commonly five to ten percent. It needs to be tracked separately from standard accounts receivable because it isn't collectible on the same timeline. If retainage is lumped into regular receivables, your cash flow projections will be overstated and your financial statements won't accurately represent your liquidity position.Do you work with contractors outside of Brewton?
Yes. We serve contractors throughout Alabama, with a strong and growing presence on the Eastern Shore — including Fairhope, Daphne, and Spanish Fort — as well as clients in Mobile and beyond. We work with many clients virtually, so geography isn't a barrier to getting the specialized construction accounting support your business needs.