CONSTRUCTION COMPANIES
Build your projects with confidence. We’ll handle the numbers.
At Pesante Close, we understand that construction accounting is different from every other industry. From job costing and change orders to prevailing wage compliance and retainage tracking, we provide specialized accounting services that help contractors manage project profitability and maintain healthy cash flow.Accounting services built for how construction actually works
From residential remodelers to commercial contractors, we provide the financial support construction businesses need. Our solutions address the specific accounting challenges of an industry where every project is unique, cash flow is unpredictable, and profitability depends on accurate job costing.THE CHALLENGE
Construction finances are complex (and generic accountants don’t get it)
Construction contractors face unique financial challenges that require specialized expertise:
- Tracking profitability by job when costs span multiple months or years.
- Managing cash flow with retainage, progress billing, and payment delays.
- Handling change orders and their impact on project budgets.
- Staying compliant with prevailing wage requirements and certified payroll.
- Coordinating subcontractor payments and 1099 reporting.
- Understanding equipment depreciation and Section 179 deductions.
- Maintaining work-in-progress schedules for bonding and banking.
OUR SOLUTION
Specialized construction accounting that tracks what matters
We’ve worked with construction contractors for years and understand exactly how your business operates. Our services help you:
- Track actual job costs versus estimates so you know if projects are profitable.
- Manage retainage and progress billing to improve cash flow.
- Handle change order documentation and financial impact analysis.
- Process certified payroll for prevailing wage compliance.
- Coordinate subcontractor payments and annual 1099 reporting.
- Maximize tax deductions for equipment, vehicles, and tools.
- Prepare work-in-progress schedules for bonding agents and lenders.
Residential contractors
Whether you’re a remodeler, custom home builder, or specialty trade contractor, we help you track job profitability, manage customer deposits and progress payments, optimize equipment depreciation, and plan for seasonal cash flow fluctuations.Commercial contractors
We understand AIA billing formats, retainage tracking, and bonding requirements. We help you manage WIP schedules, coordinate subcontractor payments, stay compliant with prevailing wage laws, and maintain the financial reporting lenders and bonding companies require.
Specialty trade contractors
From electrical and plumbing to HVAC and roofing, we help you track labor and materials by job, manage service work separately from project work, handle warranty obligations, and optimize your tax situation with proper equipment depreciation strategies.Design-build firms
We support integrated project delivery with accounting systems that track design fees separately from construction costs, manage architect and engineer payments, coordinate design phase billing, and provide clear financial reporting throughout the entire project lifecycle.JOB COSTING
Know if your projects are actually making money
The biggest mistake contractors make is not knowing whether individual jobs are profitable until it’s too late. We help you:
- Set up proper job costing systems that track labor, materials, subcontractors, and equipment by project.
- Compare actual costs to estimates throughout the project so you can spot problems early.
- Analyze completed jobs to identify which types of projects are most profitable.
- Price future work accurately based on real historical cost data from similar projects.
- Track change orders and their impact on overall project profitability.
You’ll stop wondering whether projects made money and start knowing exactly which work is worth pursuing and which jobs to avoid.
CASH FLOW MANAGEMENT
Navigate the ups and downs of construction cash flow
Construction cash flow is notoriously difficult to manage. Between retainage, payment delays, and lumpy project schedules, it’s easy to be profitable on paper while struggling to make payroll. We help you:
- Track retainage carefully so you know exactly how much is being held on each project.
- Manage progress billing to ensure you’re invoicing appropriately throughout the project.
- Forecast cash needs based on upcoming payroll, subcontractor payments, and material purchases.
- Time major expenses strategically to avoid cash crunches during slow periods.
- Negotiate better payment terms with suppliers when you understand your cash flow patterns.
- Plan for seasonal fluctuations so you have reserves to cover slower construction periods.
We also help you understand how different project types affect cash flow, so you can balance quick-turn residential work with longer-term commercial projects.
COMPLIANCE & REPORTING
Stay compliant without the headache
Construction contractors face unique compliance requirements that can be overwhelming:
- Prevailing wage and certified payroll: We process certified payroll reports for government-funded projects, ensuring compliance with Davis-Bacon and state prevailing wage laws.
- 1099 reporting for subcontractors: We track all subcontractor payments throughout the year and prepare accurate 1099-NEC forms by the January 31 deadline.
- Work-in-progress schedules: We prepare detailed WIP schedules that satisfy bonding company and bank requirements, showing contract values, costs to date, billings, and remaining work.
- Percentage of completion reporting: For contractors using percentage-of-completion accounting, we calculate and report revenue recognition properly.
Why construction contractors choose Pesante Close
We understand the unique financial demands of the construction industry:
- Industry expertise: We’ve worked with residential, commercial, and specialty trade contractors for years.
- Job cost tracking: Know which projects make money and which don’t before it’s too late.
- Cash flow planning: Navigate retainage, progress billing, and seasonal fluctuations with confidence.
- Compliance support: Prevailing wage, certified payroll, 1099s, and WIP schedules handled properly.
- Tax optimization: Maximize Section 179, bonus depreciation, and construction-specific deductions.
- Responsive support: We actually answer the phone when job costing questions come up.
FAQs
Get answers to common questions from construction contractors.
How detailed should my job costing be?
It depends on your project types and margins. At a minimum, track labor, materials, subcontractors, and equipment by job. For better insight, break labor into categories (framing, finish work, etc.) and track materials by cost type. The more detail you track, the better you can price future work and identify problems early. We’ll help you find the right balance between detail and administrative burden.
What's the best way to handle retainage?
We set up a retainage receivable account that tracks amounts held on each project. This keeps your accounts receivable accurate and shows you exactly how much retainage you’re carrying across all jobs. When retainage is released, we properly record the payment and update your cash flow. You’ll always know how much cash is tied up in retainage.
How do I track change orders properly?
Change orders need to be tracked separately from the original contract so you can see their impact on project profitability. We help you document change order costs and revenue, update job budgets accordingly, and analyze whether change orders improved or hurt overall project margins. This helps you price future change work more accurately.
Should I use cash or accrual accounting for construction?
Most construction businesses should use accrual accounting, especially if they have projects spanning multiple months. Accrual accounting matches revenue and expenses to the periods when work is performed, giving you accurate profitability by project. We’ll help you understand which method works best for your situation and ensure proper implementation.
What's a work-in-progress schedule, and why do I need one?
A WIP schedule shows all your active projects, contract values, costs incurred to date, amounts billed, and estimated costs to complete. Bonding companies and banks require WIP schedules to assess your financial health and bonding capacity. We prepare these schedules monthly or quarterly, depending on your needs, ensuring they’re accurate and properly formatted.