T: (905) 703-0962 E: services@beancounterseh.ca

Bookkeeping and Accounting Services for CONSTRUCTION TRADES

Bookkeeping services for construction trades and home renovators - we offer excellent accounting solution for you because we know your business. Accounting processes in the construction industry are different from the other industries. The construction industry follows complicated processes, and good bookkeeping software must record the relevant data. The most known specifics of construction accounting that are unique to the industry:

Job Costing
Ways to recognize revenue
Tracking change order
Tracking progress payments
Tracking holdbacks (retainage)

Back to Accounting Software Solutions

Based on our experience going through a major renovation of our farmhouse, we learned that the most challenging aspects of construction were inaccurate estimation of a particular job and insufficient labor and material distribution throughout a project.

We admit that no software might ease these pains specific to this industry, and we believe proper management strategies would be the best solution to these problems. So, in this industry, we always start discussing the existing processes first, and based on our personal experience, we might suggest some improvements whenever possible.

Job Estimates

Construction Trades Bookkeeping and Accounting Pricing

The construction industry is project-based, does not follow a standard path, and uses shared resources, including labor and tools. Sharing resources utilizes schedules that are often not possible to move or reschedule. In addition, the accounting for the revenue relies on when a contract is completed rather than invoiced. This industry requires flexibility in cost accounting due to the variables in all costs involved, starting with labor cost and ending with the cost of materials.

The good news is that each business in the construction and renovation sector adapts to these challenges differently by using various accounting methods that work best. When these methods are consistent, they always have room for process optimizations.

Job Scheduling

Cost Accounting

Any unique business leads to the creation of software solutions specifically designed to work for the characteristics of the business. As would be expected, these solutions are expensive to acquire for many self-employed contractors. Even though QuickBooks software is not considered dedicated software for the construction industry, this software has many capabilities needed for successful bookkeeping and reporting for small construction business owners and self-employed contractors. As simple as that, QuickBooks uses construction slang differently. For example, QuickBooks uses a project for a job, an item for a cost code, and a class for a cost type. Underneath the software logic, it links every job to relevant expenses and revenues during that job.

Specialized Software vs. QuickBooks

When the bookkeeper has sufficient knowledge of QuickBooks, the most unique to the construction industry transactions can be recorded and reported in QuickBooks Online subscription. QuickBooks Online software is designed for job costing, progress invoicing, receiving partial purchase orders, setting up budgets, creating estimations, and tracking costs of labor, materials, and overheads by job.

Specific to job reports also available (or can be custom-built) in QuickBooks Online:

Estimates vs. Actuals reports
Job cost allocation by customer
Job Costing Profitability
Contractor Retention Invoice
WIP, Over/Under billings custom reports can be created

QuickBooks Online works for you just fine!

One missing functionality in QuickBooks Online is the creation of change orders. It is available in Sage 100 Contactor software, including most futures mentioned above. Also, Apps are available for both Sage and QuickBooks to add extra functionalities specific to the construction industry.

To conclude, there are ways to minimize the cost of an accounting solution for construction trades. We offer the most economical approach to your financial puzzles and help you spend just the right amount from your pocket to support your accounting needs.

Sage, QuickBooks + Apps

Basic Contractor Pricing Plan Plus

Starting from $40 per month

You are a self-employed contractor with up to $30,000 in monthly revenue and require reconcile one bank account.

We provide the Basic Contractor pricing plan and prepare the T1 tax package (T4 and T5 slips).

Starting from $80 per month

You are a self-employed contractor with up to $50,000 in monthly revenue and require reconcile one bank account.

We prepare Sales tax report quarterly.

We provide the Basic pricing plan and prepare the T1 tax package (T4 and T5 slips).

Basic Pricing Plan includes:

Recording transactions with supporting documents (invoice, check, etc.)
Reconciling bank account yearly, monthly, or quarterly
Providing Job reports monthly
Providing financial statements yearly, monthly, or quarterly
Meeting to discuss financial statements and suggest improvements
Supporting Accounts Receivable module +$120
Supporting Accounts Payable module +$120
Closing accounts at the year-end, and filing HST

One-time fees:

Set-up chart of accounts from $200
Training QuickBooks Online from $200
Training Sage from $500

Basic Contractor Pricing Plan

Starting from $580 per month

You are a sole proprietor with up to five employees and up to $500,000 in monthly revenue and require reconcile up to three bank accounts.

We provide the Basic Business pricing plan, prepare the T1 (T4 and T5 slips) or T2 tax package for a business owner in addition to payroll services.

Small Construction Pricing Plan includes:

Recording transactions with supporting documents (invoice, check, etc.)
Reconciling bank account yearly, monthly, or quarterly
Providing Job reports monthly
Providing financial statements yearly, monthly, or quarterly
Meeting to discuss financial statements and suggest improvements
Supporting Accounts Receivable module +$200
Supporting Accounts Payable module +$200
Closing accounts at the year-end, and filing HST

Payroll:

Handling the remittance of source deductions to the government
Paying bills, collecting debts, running payroll
Filing T4 and T4A slips
Data entry can be prepared by us or by the business owner
$35 per employee per month if we prepare data