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
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