Bookkeeping · 5 min read
Construction Bookkeeping: Job Costing Basics
Construction bookkeeping is different from general bookkeeping because income and expenses must often be tracked by project. Job costing helps contractors understand whether each job is profitable.
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Job costing tracks costs such as:
- Labor
- Materials
- Subcontractors
- Equipment
- Permits
- Overhead
- Change orders
- Travel
- Insurance
- Project management time
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Without job costing, a contractor may appear profitable overall while losing money on specific projects.
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Construction bookkeeping should also track retainage, deposits, progress billing, accounts payable, payroll, and work-in-progress reporting.
