Construction Accounting Services

Built for contractors. Designed around the job.

TKM Accounting & Consulting specializes in the financial complexity of construction: job costing, WIP reporting, project profitability, and the cash-flow demands that come with running crews, managing subs, and closing out projects on margin.

Contractor Bookkeeping

Construction bookkeeping is not the same as general small-business bookkeeping. Every transaction needs to be coded to the right job, phase, and cost type, so your reports actually reflect what's happening in the field.

Job-coded transaction categorization by project and phase
Subcontractor and vendor invoice tracking
Account reconciliation across multiple job accounts
Monthly financial statements with job-level detail
Catch-up and clean-up for disorganized or behind books

Job Costing

Knowing your total revenue means nothing if you don't know what each job actually cost. Job costing tracks labor, materials, equipment, and subcontractor costs against your original estimate, so you can see exactly where margin is made or lost.

Cost tracking by job, phase, and cost category
Budget-vs-actual reporting per project
Labor cost allocation including burden and overhead
Subcontractor cost tracking and lien waiver coordination
Post-job profitability analysis to sharpen future estimates

Work-in-Progress (WIP) Reporting

WIP schedules are the financial backbone of construction accounting, and the first thing a bonding company or lender will ask for. An accurate WIP report shows how much revenue you've earned versus billed, and flags jobs that are over- or under-billed before they become a cash-flow problem.

Monthly WIP schedule preparation
Over-billing and under-billing identification by job
Percentage-of-completion calculations
Bonding and lender-ready WIP reporting
Integration with your project management data

Project Profitability Analysis

After the punch list is done and the final invoice is out, do you know what the job actually returned? Project profitability analysis closes the loop: comparing estimated versus actual costs, identifying the cost categories that ran over, and giving you the data to bid smarter next time.

Final job cost report vs. original estimate
Margin analysis by project type, client, and crew
Identification of recurring cost overrun categories
Overhead allocation review across active jobs
Quarterly profitability trends across your portfolio

Tax Preparation & Construction Financial Strategy

Construction businesses carry unique tax considerations — equipment depreciation, subcontractor 1099 compliance, the completed-contract vs. percentage-of-completion method, and cash-flow timing around large project payments. We handle the preparation and the planning.

Business and individual tax preparation
Subcontractor 1099 preparation and filing
Equipment depreciation and Section 179 planning
Revenue recognition method review and guidance
Cash-flow forecasting around project billing cycles

What this looks like in practice

Real problems construction accounting solves.

The situation

A general contractor finishes a $400K remodel and realizes the job lost money — but can't identify where.

The result

Job costing by phase reveals that framing ran 18% over budget due to untracked change orders. Future bids include a change-order buffer and a tighter subcontractor scope.

The situation

A specialty subcontractor is growing fast but constantly short on cash despite strong revenue.

The result

WIP reporting uncovers $90K in under-billed work across three active jobs. Correcting the billing schedule restores cash flow without adding a single new contract.

The situation

A contractor applying for bonding is asked for a WIP schedule and doesn't have one.

The result

We prepare a lender-ready WIP report from existing project data, supporting the bonding application and establishing a monthly reporting process going forward.

How we work

A focused process built around your projects.

Review your current job data

We start with your existing books, estimates, and project records, identifying gaps in job coding, WIP accuracy, and cost tracking before building a plan forward.

Build a job-level reporting rhythm

We establish monthly reporting that gives you cost-per-job visibility, WIP accuracy, and the financial picture your bonding agent or lender expects to see.

Use the numbers to improve margins

With clean job cost data in hand, you can identify which project types, clients, and crews are most profitable, and make better decisions on the next bid.

Let's look at what your jobs are actually returning.

A focused consultation is the best place to start. Bring your current project list and we'll identify where job costing and WIP reporting can make the biggest difference.

Request a consultation