Construction Bookkeeping & Project Accounting
Specialized bookkeeping, job costing, progress billing, WSIB compliance, and retainage management for Canadian construction companies and trade contractors across 9 provinces.
Expert Construction Bookkeeping Services for Canadian Contractors
Comprehensive financial management tailored for construction and trades businesses
Why Construction Bookkeeping Requires Specialized Expertise
Construction accounting differs fundamentally from traditional business accounting due to project-based operations, long-term contracts, retainage management, and complex compliance requirements. While general bookkeeping services track revenue and expenses for ongoing operations, construction bookkeeping must manage multiple simultaneous projects, each with its own cost structure, billing schedule, and profitability trajectory. This complexity demands specialized knowledge that most generalist bookkeepers simply don't possess.
At Far Beyond Bookkeeping, our construction bookkeeping services are built on deep understanding of Ontario's construction industry, including the Construction Act's payment rules, WSIB requirements, union payroll structures, and project accounting methodologies. We understand that contractors need real-time visibility into project profitability, accurate job costing across multiple cost categories, and compliant management of subcontractor payments. Our team delivers the specialized financial expertise that enables construction businesses to bid more accurately, manage projects more profitably, and maintain compliance while focusing on what they do best—building.
Project-Based Job Costing
Our construction bookkeeping system tracks costs by project, phase, and cost code including direct materials, labor, equipment usage, and subcontractor services. This granular tracking enables contractors to understand true project profitability and identify which types of work generate the highest returns.
Progress Billing & Retainage
We manage complex progress billing cycles, calculate appropriate holdback amounts per Ontario's Construction Act, track retainage release schedules, and ensure all documentation supports timely payment while protecting contractors' rights.
WSIB & Union Payroll
Our construction payroll handles WSIB premium calculations across multiple rate classes, union dues deductions varying by trade, pension fund remittances, and certified payroll reporting for government projects requiring complete compliance.
Subcontractor Management
We manage subcontractor onboarding, verify WSIB clearance and insurance certificates, process progress payments with holdbacks, track change orders, and maintain detailed payment records that protect contractors from liability.
Comprehensive Construction Accounting Solutions
Complete financial management services designed specifically for contractors and trades
Job Costing & Project Profitability Analysis
Construction profitability hinges on accurate job costing that captures all direct and indirect costs at the project level. Our construction bookkeeping system goes far beyond basic expense tracking by implementing sophisticated cost allocation methodologies that assign every dollar spent to specific projects, phases, or cost codes. This level of detail enables contractors to understand exactly which projects, customers, or types of work generate the highest returns.
We track materials from initial purchase through installation, capturing actual costs versus budgeted amounts, identifying waste or theft, and analyzing supplier pricing across projects. Labor costs are tracked by employee, trade classification, and project phase, enabling productivity analysis that identifies which crews work most efficiently. Equipment costs include rental expenses, fuel, maintenance, and operator time, with usage allocated to specific projects based on actual hours worked.
Our profitability analysis extends beyond simple revenue minus cost calculations. We calculate gross margins by project type, customer segment, and geographic market. We analyze profit trends over time to identify whether margins are improving or declining. We compare actual performance against bid estimates to identify systematic pricing problems. This comprehensive profitability analysis helps contractors make data-driven decisions about which projects to pursue, which customers to prioritize, and how to price future work more accurately.
Progress Billing & Cash Flow Management
Construction cash flow presents unique challenges due to timing differences between incurring costs and receiving payment, retainage holdbacks that delay cash collection, and progress billing requirements that must align with contract terms. Our construction bookkeeping services manage this complexity through sophisticated billing systems that ensure timely invoice submission while maintaining accurate records of all billings and collections.
We generate progress billings based on percentage complete, milestone achievement, or cost incurred methods depending on contract requirements. Our system tracks work completed versus work billed, identifying under-billed amounts that represent accounts receivable and over-billed amounts that represent deferred revenue. This ensures accurate financial statement presentation while helping contractors manage cash flow effectively.
Retainage management requires careful attention to holdback percentages, release triggers, and statutory timing requirements under Ontario's Construction Act. We track retainage amounts by project and subcontractor, monitor certificate of substantial performance dates, ensure proper release documentation, and manage holdback releases within statutory timeframes. This systematic approach protects contractors' rights while maintaining positive relationships with subcontractors through timely payment.
Cash flow projections integrate progress billing schedules, subcontractor payment terms, material supplier credit terms, retainage release timing, and overhead commitments. These forecasts enable contractors to plan for equipment purchases, manage working capital needs, and negotiate better payment terms. Improved cash flow management reduces financing costs, enables growth without equity investment, and provides peace of mind that bills will be paid on time.
WSIB Compliance & Union Payroll Management
Construction payroll presents unique compliance challenges that generalist bookkeepers rarely understand. WSIB premium calculations must consider multiple rate classes based on work performed, insurable earnings limits, and proper remittance schedules. Union payroll requires accurate dues calculations based on trade affiliation, collective agreement requirements, and varying deduction structures. Certified payroll reporting for government projects demands weekly detailed reporting of wages, fringe benefits, and compliance with prevailing wage regulations.
Our construction payroll services handle all these requirements while maintaining complete compliance with Ontario Employment Standards Act and federal payroll regulations. We calculate WSIB premiums accurately based on each employee's actual work activities, ensuring proper classification across rate categories and managing premium remittance to avoid penalties. Our system tracks insurable earnings, ensures premium calculations respect applicable maximums, and maintains detailed records that support WSIB audits.
Union payroll management involves calculating dues that vary by trade, local union, and collective agreement. Some unions calculate dues based on straight hours worked, while others use tiered structures or different rates for journeymen versus apprentices. Benefit packages, pension contributions, and working fund deductions all must be calculated accurately and remitted on time. Our payroll system manages this complexity automatically, ensuring employees are paid correctly while union requirements are met.
Certified payroll reports for government projects require detailed weekly reporting including employee names, social insurance numbers, hours worked, wage rates, fringe benefit rates, and signature attestations. Our construction bookkeeping team generates these reports accurately and on time, ensuring contractors remain eligible for government contracts and avoiding penalties for non-compliance. We maintain detailed records that support Department of Labour audits and demonstrate compliance with prevailing wage regulations.
Subcontractor Management & Compliance Tracking
General contractors rely heavily on subcontractors while carrying significant compliance responsibilities for those trades. Ontario's Construction Act makes general contractors liable for unpaid wages if subcontractors don't pay their employees, creating serious financial risks. Our subcontractor management system mitigates these risks through comprehensive onboarding, ongoing monitoring, and careful payment processing.
During subcontractor onboarding, we verify WSIB clearance certificates, confirm general liability insurance coverage, check trade certifications where required, and collect completed WCB statements. We maintain detailed records of payment terms, holdback percentages, warranty requirements, and bonding capacity. This comprehensive database enables informed subcontractor selection and protects contractors from compliance liabilities.
Subcontractor payment processing involves more than simply cutting checks. We review progress billing submissions for accuracy, verify that work has been completed according to contract specifications, calculate appropriate holdback amounts per contract requirements, and ensure that all necessary lien waivers are received. Our automated approval workflows require project manager confirmation before payments are released, preventing payment for defective or incomplete work.
We track change orders from initial proposal through final approval, capturing cost impacts and ensuring that all changes are properly documented before additional payments are released. This prevents disputes over extra work and ensures that contractors aren't paying for changes that weren't properly authorized. Our change order management system maintains complete audit trails that protect contractors in case of disagreements.
Work-in-Progress & Construction Financial Reporting
Construction financial statements require specialized accounting treatments that differ significantly from other industries. Work-in-progress accounting, percentage-of-completion revenue recognition, under-billed and over-billed amounts, and contract asset presentations all require expertise that generalist bookkeepers typically lack. Our construction financial reporting delivers accurate, compliant statements that demonstrate business health to sureties, lenders, and stakeholders.
Work-in-progress accounting tracks costs incurred on uncompleted projects, compares those costs to contract values, and calculates percentage completion for revenue recognition purposes. Our system uses cost-to-cost methods, estimating the percentage complete based on costs incurred divided by total estimated costs. This ensures that revenue recognition matches the economic reality of project progress rather than following arbitrary billing schedules.
Under-billed amounts represent work completed but not yet billed to customers, typically shown as contract assets on the balance sheet. Over-billed amounts represent billings that exceed work completed, shown as contract liabilities. Our construction bookkeeping tracks these amounts continuously, ensuring accurate financial statement presentation while helping contractors manage cash flow effectively.
Our specialized construction reports include job-level profit and loss statements, schedule of work-in-progress and completed jobs, contract backlog analysis, equipment utilization reports, and subcontractor performance summaries. Bonding companies require these specialized reports to assess contractors' financial capacity, and our professional presentation significantly improves bonding capacity. Many contractors find that improved bonding enables them to pursue larger projects that were previously beyond their reach.
Benefits of Professional Construction Bookkeeping
How specialized financial management drives construction business success
Accurate Project Pricing
Historical job costing data enables accurate bidding based on actual costs rather than rough estimates, helping contractors avoid underpricing work that destroys margins while remaining competitive in the marketplace.
Early Problem Detection
Real-time cost tracking identifies overruns quickly, enabling corrective action before small problems become major losses. Labor inefficiencies, materials waste, and subcontractor issues get flagged immediately.
Improved Cash Flow
Progress billing optimization and retainage tracking ensure timely cash collection while payment terms for subcontractors and suppliers are managed effectively, reducing working capital strain.
Bonding Capacity Growth
Professional financial statements demonstrating profitability and stability significantly increase bonding capacity, enabling contractors to pursue larger projects and expand into new markets.
Compliance Protection
WSIB compliance, union payroll accuracy, and subcontractor verification protect contractors from penalties, liabilities, and legal disputes while maintaining good standing with regulatory authorities.
Strategic Decision Support
Profitability analysis by project type, customer, and market segment enables informed strategic decisions about which opportunities to pursue and which to decline, focusing resources on the most profitable work.
Transform Your Construction Financial Management
Get expert construction bookkeeping services that help your contracting business thrive. Our team understands Ontario's construction industry and delivers the specialized financial expertise you need.
Related Construction Financial Services
Multi-Location Support
Managing financial operations across multiple job sites and project locations with centralized oversight and local compliance expertise.
Joint Venture Accounting
Specialized accounting for construction joint ventures including revenue sharing, cost allocation, and partnership reporting.
CRA Construction Guidelines
Official Canada Revenue Agency guidelines on construction accounting methods, GST/HST rules, and income tax requirements for contractors.
Frequently Asked Questions
Common questions about our Canadian bookkeeping services
Construction bookkeeping requires specialized knowledge of project-based accounting, job costing systems, retainage management, and progress billing methodologies that differ significantly from traditional business accounting. Construction businesses face unique challenges including managing multiple concurrent projects, tracking costs across different job sites, handling subcontractor payments, calculating work-in-progress inventory, and managing complex union payroll requirements with WSIB compliance.
Our construction bookkeeping services are specifically designed to address these industry-specific challenges. We understand that contractors need real-time visibility into project profitability, accurate tracking of retainage amounts, proper allocation of overhead across jobs, and compliant management of union payroll deductions. Unlike generic bookkeeping providers, our team has deep expertise in construction accounting including percentage-of-completion revenue recognition, AIA billing formats, change order management, and subcontractor compliance tracking.
Construction businesses also deal with complex cash flow management due to progress billings, retainage holdbacks, and timing differences between project costs and customer payments. Our construction accounting expertise ensures that contractors maintain accurate cash flow forecasts, manage project financing effectively, and make informed decisions about which projects to pursue based on profitability analysis rather than gut instinct.
Our construction job costing system provides granular visibility into every aspect of project financial performance. We track direct costs including materials, labor, equipment usage, and subcontractor services at the project phase level. This detailed tracking enables contractors to understand exactly which projects, types of work, or customers are generating the highest profits and which may be eroding margins.
We implement sophisticated cost allocation methodologies that properly assign indirect costs like equipment depreciation, supervision salaries, insurance, and office overhead to specific projects based on rational allocation methods. This ensures that each job's true profitability is accurately calculated rather than relying on arbitrary overhead percentages that can distort financial decision-making.
Our job costing reports include labor productivity analysis, materials variance tracking, subcontractor cost comparisons against budget, and equipment utilization rates. Contractors receive early warning alerts when projects begin running over budget or when certain cost categories show unfavorable variances. This proactive approach enables course corrections before projects become unprofitable rather than discovering problems after completion.
We also manage work-in-progress (WIP) accounting including percentage-of-completion calculations, cost-to-cost methods for revenue recognition, and proper balance sheet presentation of under-billed and over-billed amounts. This ensures accurate financial statements while providing contractors with clear visibility into their project pipeline's financial position.
Construction payroll presents unique challenges including WSIB premium calculations based on correct rate classes, union dues deductions that vary by trade affiliation, pension fund remittances, and certified payroll reporting for government projects. Our construction payroll services handle all these requirements while maintaining complete compliance with Ontario labour standards and federal payroll regulations.
We manage WSIB coverage for employees working across multiple rate classes, ensure proper premium remittance based on actual insurable earnings, and maintain detailed records that support WSIB audits and claims. For unionized environments, we calculate dues accurately based on each employee's trade classification, hours worked, and applicable collective agreements. Our system automatically handles different union dues structures, benefit package deductions, and working fund contributions.
Subcontractor compliance is another critical area where we provide comprehensive support. We verify that all subcontractors maintain valid WSIB clearance certificates, track insurance certificate expiration dates, ensure proper worker classification, and maintain detailed records of all subcontractor payments. This protects general contractors from liability for uninsured subcontractor claims while ensuring all regulatory requirements are met.
Certified payroll reporting for government-funded projects requires weekly reporting of employee wages, fringe benefits, and compliance with prevailing wage regulations. Our construction payroll team generates these reports accurately and on time, ensuring contractors remain eligible for government contracts while avoiding penalties for non-compliance.
Construction businesses require specialized financial reporting that goes beyond standard income statements and balance sheets. Our reporting suite includes job-level profit and loss statements showing revenue, costs, and gross margin for each active project, work-in-progress schedules detailing costs incurred versus billings, retainage aging reports tracking holdback amounts and release dates, and equipment utilization reports showing rental versus owned equipment profitability.
We provide cash flow projections that consider progress billing schedules, subcontractor payment terms, material supplier credit terms, and retainage release timing. These forecasts help contractors manage working capital effectively, plan for equipment purchases, and ensure adequate liquidity for new project commitments.
Our project dashboard shows key performance indicators including labor productivity rates, materials variance percentages, subcontractor cost performance, change order impact analysis, and project backlog by expected completion date. Contractors can quickly identify which projects need management attention and which are performing according to plan.
We also generate specialized reports for bonding companies including schedule of work-in-progress and completed jobs, contract backlog analysis, profitability trends, and working capital calculations. These reports support surety bond applications and demonstrate financial stability to project owners requiring bonded contractors.
For tax planning purposes, we provide construction-specific tax optimization advice including capital cost allowance decisions for equipment purchases, income timing strategies for long-term contracts, GST/HST management on progress billings, and eligible capital cost identification for renovation projects versus inventory property classification.
Subcontractor management represents a critical aspect of construction bookkeeping that requires careful attention to compliance, payment terms, and cost tracking. Our subcontractor management system handles the entire process from initial onboarding through final payment and retainage release.
During onboarding, we verify that subcontractors maintain required insurance coverage including general liability, WSIB clearance certificates, and applicable trade certifications. We maintain detailed records of each subcontractor's payment terms, holdback percentages, warranty requirements, and bonding capacity. This comprehensive database enables informed subcontractor selection and protects contractors from compliance risks.
Our subcontractor payment processing manages progress payments based on percentage complete or milestone achievement, calculates appropriate holdback amounts per Ontario's Construction Act, tracks change order approvals and cost impacts, and ensures that lien periods are properly managed. We implement automated approval workflows that require project manager confirmation that work meets quality and contract requirements before payments are released.
We maintain detailed retainage schedules showing when holdback amounts become eligible for release and what conditions must be met including completion of deficiencies, certificate of substantial performance issuance, and warranty period expiration. This systematic approach ensures that contractors don't release retainage prematurely while meeting all legal requirements for timely payment.
Our subcontractor cost tracking system compares actual subcontractor bids against awarded amounts, tracks change order costs, and analyzes subcontractor performance across multiple projects. This data helps contractors build reliable subcontractor networks, negotiate better pricing on future projects, and identify which trades partners consistently deliver quality work on time and on budget.
Professional construction bookkeeping provides contractors with the financial intelligence needed to significantly improve project profitability through better decision-making, cost control, and strategic pricing. Many contractors rely on gut instinct or rough estimates when bidding projects, but our detailed job costing data enables accurate pricing based on historical actual costs rather than hopeful assumptions.
We identify profitability trends across different project types, customer segments, geographic markets, and construction methods. This analysis helps contractors focus marketing efforts on the most profitable work types, decline underpriced projects that destroy value, and identify opportunities for operational improvements. Some contractors discover that certain types of projects they thought were profitable are actually losing money when all costs are properly allocated.
Our cost variance analysis identifies specific problems early including materials waste, labor inefficiencies, equipment underutilization, and subcontractor overruns. Armed with this information, project managers can implement corrective actions before small problems become major losses. We've seen contractors improve project margins by 5-10% simply through better cost visibility and timely intervention.
Cash flow management is another area where professional bookkeeping delivers measurable profitability improvements. By accurately projecting cash inflows from progress billings and outflows for subcontractors and materials, contractors can negotiate better payment terms, take advantage of early payment discounts, and avoid costly financing charges. Improved cash flow also enables contractors to pursue more opportunities without being constrained by working capital limitations.
For contractors seeking bonding or financing, our professional financial statements demonstrate business stability and profitability to sureties and lenders. This can significantly increase bonding capacity, enabling contractors to pursue larger projects that were previously beyond their reach. Many contractors find that improved bonding capacity directly translates to higher revenue and profits.