What accounting do concrete contractors need?
Concrete contractors need job costing at the core of their accounting. Without tracking costs by project, you’re guessing at which jobs made money. Materials, labor, equipment, and subcontractors all need to be coded to specific jobs so you can compare actual costs against your estimates.
Material tracking matters more for concrete work than many other trades. Concrete prices change, and the difference between estimated and actual material costs can swing a job from profitable to break-even. Track what you quoted for materials versus what you actually spent. That data helps you bid more accurately next time.
Equipment is a major investment for concrete contractors. Pumps, mixers, trucks, and forms tie up capital and need maintenance. Your accounting should track depreciation and maintenance costs so you know what equipment actually costs to operate. Some contractors track equipment utilization by job to see true project costs including wear on their machines.
Labor accounting includes more than just hours worked. Concrete work has higher workers’ comp rates than many trades. If you do prevailing wage work, you’ll need certified payroll reporting. Track labor costs by job so you can see if your crew is hitting the productivity you assumed in your bid.
Progress billing and retainage show up on commercial and larger residential projects. Your accounting needs to track work completed, amounts billed, and retainage held back. Retainage can sit on your books for months after a job finishes, so your books need to reflect what’s actually collectible and when.
Cash flow tracking is critical because concrete contractors often pay for materials before getting paid for completed work. Your books should give you visibility into upcoming payments due and expected collections so you’re not caught short when material bills come due.
The accounting setup doesn’t need to be complicated, but it does need to be construction-specific. Generic bookkeeping that lumps all materials into one category and all labor into another won’t tell you anything useful. Job costing at the project level is what lets you see profitability and make better decisions on future bids.
If you’re running QuickBooks without proper job costing setup, your financial statements might be accurate for taxes but useless for running your business. A construction bookkeeper in American Fork who understands how concrete contractors operate can set up your books so every material purchase, labor hour, and equipment charge gets assigned to the right project. That’s when your accounting starts helping you make money instead of just tracking it.
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More Questions
How do I track subcontractor costs by project?
Enter every sub invoice with the correct job assigned the same day it arrives. Track committed costs from contracts, not just payments, so you see your true position before invoices land.
Read answerHow do I compare estimated vs actual job costs?
Structure your estimates and actuals the same way, then track every expense by job, phase, and cost code. Compare weekly during active construction so you catch variances while you can still react.
Read answerHow much does a bookkeeper cost for a small business?
Most small businesses pay between $200 and $800 per month for bookkeeping services. The actual cost depends on transaction volume, complexity, and what's included. Specialized industries like construction typically cost more.
Read answerHow do I price my jobs as an electrical contractor?
Job pricing requires knowing your fully burdened labor rate, material markup, overhead allocation, and profit margin. Most contractors underprice because they don't have accurate data on what jobs actually cost.
Read answerCan QuickBooks handle job costing for construction?
Yes, QuickBooks can handle job costing for construction if it's configured correctly. Default setup won't work because it tracks expenses at the company level, not by job. Proper configuration includes enabling jobs, setting up construction-specific categories, and coding every transaction to the right project.
Read answerHow do I separate business and personal expenses?
Open a dedicated business bank account and credit card. Run all business transactions through these accounts and keep personal purchases separate. This creates a clean audit trail and makes bookkeeping straightforward.
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