How do I find a bookkeeper who understands construction accounting?
Finding a bookkeeper who actually understands construction accounting takes more than a Google search. Most bookkeepers can handle basic transaction categorization and reconciliation. But construction has specific requirements that general bookkeepers don’t know how to handle, and getting it wrong means your financial reports won’t tell you what you need to know about your business.
The first thing to look for is direct experience with construction clients. Ask how many contractors or trades businesses they currently work with. If the answer is zero or one, you’ll be paying them to learn on your business. You want someone who has already solved the problems you’re going to face: tracking costs by project, handling progress billing, managing retainage, and dealing with change orders.
Job costing is the core of construction accounting. A bookkeeper who understands construction should be able to explain how they set up job costing in QuickBooks or whatever software you use. They should know how to structure a chart of accounts for construction, how to track labor and materials by project, and how to produce reports that show profitability at the job level. If they can’t answer these questions clearly, they’re not the right fit.
Ask about specific construction accounting concepts. How do they handle retainage receivable and payable? Can they produce a work-in-progress report? Do they understand percentage of completion accounting versus completed contract? The right bookkeeper will know these terms and have systems for tracking them. A general bookkeeper will hesitate or give vague answers.
Software knowledge matters, but setup matters more. Most contractors use QuickBooks, and most QuickBooks setups for construction are wrong. A bookkeeper with construction experience knows that default QuickBooks isn’t built for job costing. They know how to configure classes, enable progress invoicing, and create the custom reports contractors actually need. If someone says they know QuickBooks but can’t explain how to set it up specifically for a contractor, they’re not construction-ready.
Look at their background. Some of the best construction bookkeepers came from the industry itself. They worked in construction companies before moving into accounting, or they’ve spent years focused exclusively on contractors and trades. This operational understanding makes a difference because they know why job costing matters, not just how to enter numbers. Working with a construction bookkeeper in American Fork who has this kind of industry background means you’re getting someone who speaks your language and understands the realities of running jobs along the Wasatch Front.
Red flags to watch for: they describe construction accounting as “basically the same” as regular bookkeeping. They can’t name specific construction clients. They’ve never heard of AIA billing formats. They don’t ask you about your current job costing setup in the first conversation.
The right bookkeeper will ask you questions early on. How many projects do you run at once? Do you have subcontractors? How do you currently track job costs? Do you need WIP reporting? These questions show they understand what construction businesses need and they’re assessing whether they can help you.
Don’t settle for someone who’s willing to “figure it out.” Construction accounting has too many industry-specific requirements. Find someone who already knows what they’re doing.
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More Questions
Who provides payroll services for contractors in Utah?
Several types of providers handle contractor payroll in Utah including national payroll companies, local bookkeeping firms, and construction-specialized services. The right choice depends on whether you need job costing integration and certified payroll capabilities.
Read answerWhat financial reports should an electrician review?
Job profitability reports matter most because they show which projects made money. Beyond that, review your P&L monthly, AR aging weekly, and cash position regularly.
Read answerHow do I track costs for each construction project?
Assign every expense to a specific job at the time it happens using cost codes that match how you estimate. Track labor, materials, and subcontractor costs separately by phase, then compare budget to actual weekly.
Read answerIs there a bookkeeper near me in Provo that works with contractors?
TRUEquity Bookkeeping serves contractors in Provo and throughout Utah County. Based in American Fork, we specialize in construction accounting and job costing for contractors across the Wasatch Front.
Read answerWhat are cost codes and how do I use them?
Cost codes are a numbering system that assigns every job expense to a specific category like framing, electrical, or finishes. They let you track exactly where money goes on each project instead of lumping everything together.
Read answerWho does bookkeeping for contractors in Salt Lake City?
Several bookkeeping firms in the Salt Lake City area work with contractors, but not all understand construction accounting. Look for someone with job costing experience who knows how to track costs by project and phase.
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