Construction & Contractors
General contractors, home builders, and remodelers who need job costing that actually tracks every dollar and cash flow visibility that matches how you get paid.
The Industry
A home builder finishes a $380,000 custom build. Materials ran $140,000. Labor cost $95,000. Subs took another $80,000. Permits, inspections, and equipment rentals added $25,000. That leaves $40,000 in profit. Except when he actually reviews the numbers, there were three trips back for punch list items, a framing callback that took two days, change order materials that never got billed to the client, and fuel costs nobody tracked. Real profit was closer to $22,000. He quotes the next similar project using the same assumptions that were wrong the first time.
Construction runs on cash flow timing that has nothing to do with profitability. You pay for materials before the job starts. Crew gets paid every Friday whether the client has paid you or not. Progress draws arrive on their own schedule. Retainage sits for 60 to 90 days after completion. A profitable year can still have you scrambling for payroll in slow months because the cash isn’t where the profit is. This gets worse as you grow because you’re funding bigger projects with the same cash reserves.
Who This Covers
Who This Covers
General contractors, home builders, remodelers, and specialty contractors across the Phoenix area. Projects ranging from bathroom renovations to ground-up custom homes. Whether you’re running two crews or twenty, the job costing and cash flow challenges are similar.
What Makes It Complex
What Makes It Complex
Job costing that needs to track materials, labor, subs, equipment rentals, permits, and fuel to specific projects. Progress billing and retainage. Subcontractors who need 1099s at year end. Varying crew sizes across multiple job sites. Change orders that modify scope and budget mid-project. Callbacks and warranty work that erode margins after the job is “complete.”
What We Handle
Job costing means every dollar gets coded to the right project. When you buy lumber, it goes to the specific job that lumber is for. When your crew works, those hours get allocated to the project they worked on. When a sub sends an invoice, it gets tied to the correct job. QuickBooks gets configured for construction work so the reports actually show you job-level profitability instead of generic expense categories. You can compare estimated versus actual costs on completed projects and use that data to bid the next one accurately.
Progress billing and retainage get tracked so you know exactly what’s been billed, what’s been collected, and what’s still outstanding. Cash flow forecasting shows when draws should arrive and when gaps need coverage. Payroll handles varying hours across job sites with overtime calculated correctly. Subcontractor records stay current throughout the year so January isn’t a scramble for W-9s and addresses. Financial statements arrive monthly and actually reflect how your projects are performing.
Job Costing That Works
Job Costing That Works
Every expense coded to the correct project. Materials purchased, labor hours worked, subcontractor invoices, equipment rentals, permit fees, and fuel. You see actual versus estimated costs on each job. Historical data from completed projects informs future bidding. QuickBooks set up specifically for construction, not generic small business accounting.
Payroll and Subcontractor Management
Payroll and Subcontractor Management
Crew payroll processed with overtime calculated and job site hours tracked. Subcontractors documented with W-9s collected when you start working with them instead of chasing them in January. Progress billing reconciled to work completed. Cash flow visibility showing what’s outstanding, what’s coming, and when you need to plan for gaps.
What Goes Wrong
Materials get expensed when purchased instead of allocated to jobs. Labor gets lumped together across all projects. Subcontractor invoices hit the books without being tied to specific work. You know total revenue and total expenses for the month, but you can’t tell which jobs made money. That kitchen remodel might have lost $6,000 while the room addition made $14,000. Without project-level visibility, you keep bidding kitchen remodels at prices that don’t work and turn away additions that would have been profitable.
Cash flow surprises hit even contractors with strong margins. You complete a $250,000 project in October. The final draw doesn’t arrive until late November. Retainage won’t release until January. But payroll still happens every Friday and your material suppliers don’t wait. Subcontractor records are a mess because nobody collected W-9s during the year. Now it’s January and you’re calling guys who worked for you in March trying to get tax IDs and addresses. Quarterly tax estimates were never set up or are based on last year’s numbers that don’t reflect this year’s income.
Bidding Without Data
Bidding Without Data
Every estimate based on gut feel and optimism. You think you know what a remodel costs, but you’re not accounting for the extra trip to the supplier, the day spent fixing the sub’s work, or the callback that happened three weeks after final payment. Real costs run 15-20% higher than your mental math. You keep taking jobs at prices that barely break even.
Cash Gaps and Year-End Chaos
Cash Gaps and Year-End Chaos
Profitable on paper but scrambling for payroll in practice. Retainage sitting for months while expenses pile up. Subcontractors paid throughout the year but no W-9s on file. Quarterly tax estimates not set up or wildly inaccurate. Equipment purchases not depreciated properly. April arrives with a tax bill you weren’t expecting.
What Changes
Every project shows true profitability after all costs are captured. When you finish a job, you know exactly what it cost including the parts that are easy to forget. Historical data from completed projects shows what similar work actually costs. Your next estimate pulls from real numbers, not hopeful guesses. You stop underpricing and leaving profit on the table. You stop taking jobs that feel profitable but aren’t. You recognize which project types and customer profiles generate consistent margins and focus there.
Cash flow becomes something you can predict instead of react to. You know what’s outstanding, when it should arrive, and where the gaps will be. Payroll happens without eating your weekend. Subcontractor records stay current so year-end is clean and 1099s go out on time. Quarterly tax estimates get set based on actual income patterns so April doesn’t bring a surprise bill. Monthly financial statements show where you actually stand, not numbers you have to reconstruct six months after the fact.
Estimates Based on Actual Costs
Estimates Based on Actual Costs
Historical job cost data shows what projects really cost. When you bid a similar job, you’re pulling from real numbers. You stop underbidding and losing money without realizing it. You stop overbidding and losing good work to competitors. Margins improve because decisions are based on information instead of memory and optimism.
Systems That Handle Growth
Systems That Handle Growth
Financial processes that work at your current size and still work when you double revenue. Payroll processed without burning your time. Subcontractor records maintained throughout the year. Quarterly tax estimates that prevent April disasters. Monthly financials that arrive on schedule and actually reflect how your projects are performing.
Full-Service Bookkeeping for Greater Phoenix
The Next Step:
A Quick Conversation
Tell us about your situation. We'll listen, ask a few questions, and give you a clear price to handle the work.