Accounting Support for Contractors, WIP Schedules, and Bonding
Construction accounting has unique requirements that general-practice CPAs often miss: job costing, percentage-of-completion accounting, WIP schedules, retainage, change orders, bonding requirements, equipment deductions, payroll, and contractor licensing. We help contractors and construction companies connect those records to tax, audit, banking, bonding, and cash-flow decisions.
KAS CPA works with construction businesses that need contractor accounting, financial statement support, tax planning, and practical advisory from a virtual-first CPA practice serving clients nationwide / all 50 states where permitted.
Who We Serve
- General contractors
- Specialty trade contractors
- Construction managers
- Design-build firms
- Developers and builders
- Subcontractors and trades
Construction Accounting
- Job costing systems and reporting
- Percentage of completion accounting
- Work-in-progress schedules
- Completed contract method analysis
- Change order tracking and accounting
- Retention and billing management
Bonding and Banking Support
- Financial statements for bonding companies
- CPA-prepared WIP schedules
- Bank line of credit support
- Personal financial statements for guarantors
Construction Tax
- Long-term contract method elections
- Look-back interest calculations
- Research and development credits for construction
- State contractor registration and compliance
The Monthly WIP Review
A useful work-in-progress schedule reconciles contract value, approved and pending change orders, costs incurred, estimated cost to complete, billings, retainage, and recognized revenue by job. Management should be able to explain margin movement, underbillings, overbillings, stalled jobs, and forecast changes. We help connect the job-cost ledger to the general ledger so the schedule used by owners agrees with the financial statements provided to a surety or lender.
The review is designed to surface decisions: which estimates need a project-manager update, whether a change order is sufficiently supported, where labor or material cost is exceeding budget, and which jobs are consuming working capital. A contractor with reliable monthly WIP reporting can address fade and cash pressure before year-end rather than discovering it during the financial statement engagement.
Engagement Readiness
- Executed contracts, change-order logs, job budgets, cost-to-complete estimates, and backlog
- Job-cost detail that reconciles to payroll, payables, equipment, subcontractor, and general-ledger records
- Billing, retainage, claims, related-party, debt, lease, and surety information
- Prior tax-method elections and support for long-term contract and look-back calculations
The right reporting level depends on the user. A bank may request a CPA review, a surety may require an audit, and an owner may need a monthly close and WIP package. We confirm the required report and deadline before proposing the work so the engagement matches the decision it must support.
For multistate contractors, the same project data also supports payroll withholding, sales and use tax, gross-receipts filings, contractor registrations, and income-tax apportionment. Mobilization into a new jurisdiction should trigger a compliance review before invoices and payroll begin.