Construction
Every project is its own P&L. We track labor, materials, and subcontractor costs by job so you know what actually made money and can price future bids accordingly.
The Industry
Construction accounting works differently. You don’t just have a monthly profit and loss statement. You have a separate P&L for every single project. The question isn’t whether the company made money last month. The question is whether you made money on the Henderson kitchen remodel or that commercial tenant improvement downtown.
The cash flow challenge is constant. You buy materials today, pay the crew Friday, and wait 30, 60, or even 90 days for the check. Subcontractors need 1099s. Change orders happen with a handshake. Insurance audits demand precise payroll records. The financial side of running a construction business has more moving parts than most owners anticipated when they first got their contractor’s license.
Who This Covers
Who This Covers
General contractors, plumbers, electricians, HVAC technicians, roofers, framers, and specialty trades across San Diego County. Anyone bidding projects, buying materials, and billing for completed work.
The Friction
The Friction
Receipts fade on the dashboard. The supply house account shows a running balance but no detail by job. Figuring out whether you actually made money on the Smith project after paying the crew and the subs requires time nobody has at the end of a long day.
What We Handle
We focus on job costing. Every receipt, every hour of labor, and every subcontractor invoice gets assigned to a specific project. This moves you away from generic expense categories like “Materials” or “Labor” toward a clear breakdown of what it actually cost to complete each job.
We also manage the compliance paperwork. We track which subcontractors have provided W-9s and Certificates of Insurance. We make sure 1099s go out on time. If you do commercial work with progress billing, we help keep the pay applications organized and matched to the work completed.
Job Profitability
Job Profitability
You will know exactly which projects generated a healthy margin and which ones barely covered costs. This data becomes the foundation for pricing future bids accurately instead of relying on gut feel.
Subcontractor Records
Subcontractor Records
We verify W-9s and insurance certificates are on file before the first payment goes out. When January arrives, 1099 filing becomes a routine task instead of a scramble through old emails and texts.
Common Problems
The most common issue in construction is using cash from a new deposit to finish an old job. It works for a while until the cycle breaks. Without clear Work in Progress reporting, you might not realize there’s a problem until the bank account is empty and there’s no next deposit to pull from.
Another problem is the verbal change order. You agree to move a wall or upgrade the fixtures, but it never makes it onto the final invoice. You end up absorbing the extra material and labor because nobody documented the added scope. Over time these add up to real money left on the table.
Overhead Blindness
Overhead Blindness
Counting lumber and labor is straightforward. Factoring in truck insurance, fuel, tool replacement, licensing, and software subscriptions is harder. If your bids don’t cover true overhead, you are working for free without realizing it.
Insurance Audits
Insurance Audits
Workers’ comp audits happen every year. If your payroll records are not separated by classification code, or if you cannot prove your subs carry their own coverage, expect a painful premium adjustment after the auditor finishes.
What Changes
You start bidding with confidence. Instead of guessing based on how a job felt, you look at the data from your last three bathroom remodels or HVAC installs and see exactly what your actual costs were. Your quotes are based on real numbers, not rough estimates.
The cash flow picture becomes clearer. You can see the draw schedule coming up and plan material purchases accordingly. Banks see clean financial statements when you need to finance a truck or piece of equipment. Growth decisions are based on verified profit, not just a busy schedule.
Controlled Growth
Controlled Growth
You can add crews or take on bigger projects because you know the numbers support it. You understand what your overhead needs to be and how much revenue each job must generate. Growth becomes sustainable instead of stressful.
Audit Ready
Audit Ready
When the workers’ comp auditor calls, you forward the file. Payroll is organized by classification code. Subcontractor certificates are in order. What used to be a stressful week of digging through paperwork becomes a routine check.
San Diego's Small Business Bookkeeper
The Next Step:
A Short Conversation
A quick call to tell us about your business. We'll listen, answer your questions, and give you a clear price quote.
