Administrative Bookkeeping

Accurate bookkeeping is essential for running a profitable contracting business. When you’re managing multiple jobs, suppliers, subcontractors, permits, and change orders, it’s easy for the numbers to fall behind. Outsourced bookkeeping brings structure to your day-to-day transactions and turns them into clear, dependable financial insight.

It includes automated workflows, monthly profit and loss reporting, budgeting and cash flow planning, KPI tracking, service agreement oversight, and regular financial reviews. With added fractional CFO support, you gain strategic guidance to improve margins, plan growth, or position the business for a future sale.

Why contractors need outsourced bookkeeping

Contractors operate with thin margins, irregular cash flow, and job-level complexity. Common pain points include delayed invoicing, untracked retainage, inaccurate job costing, and surprise tax liabilities. Outsourced bookkeeping for contractors replaces manual spreadsheets with a disciplined, automated system that produces timely P and Ls, reconciled accounts, and job profitability reports so you can make decisions confidently.

Common bookkeeping issues for contractors

• Missing or late progress billing and retainage tracking
• Poor job costing that mixes overhead and direct costs
• Unreconciled bank and credit card accounts causing cash surprises
• Incomplete subcontractor 1099 and insurance tracking
• No standardized chart of accounts for construction jobs
• Lack of a forecasted cash flow plan for material and payroll peaks
• No clear KPI dashboard for job margins, backlog, and AR aging

Our bookkeeping approach for contractors

This service combines automated bookkeeping workflows with contractor-specific financial management practices:

• Automated transaction capture and categorization via bank, card, and payment integrations to reduce manual data entry
• Monthly close process that produces timely P and L, balance sheet, and cash flow statements
• Job-level setup and ongoing job costing to track direct costs, labor, materials, equipment, and subcontractor expenses per project
• Progress billing, retainage, and WIP (work in progress) accounting compliant with contractor practices
• Accounts receivable management and aged receivable reporting to speed collections
• Accounts payable control and supplier reconciliation to prevent duplicate payments and manage vendor terms
• Service agreement maintenance and documentation of contract terms, change orders, and retainage schedules
• Regular meeting cadence (weekly or monthly) for review, decision support, and planning
• KPI tracking and a dashboard focused on contractor metrics such as gross margin by job, backlog, days sales outstanding, burn rate, and labor efficiency
• Fractional CFO support for strategic planning, growth projects, or sale readiness including forecasting, valuation prep, and lender or investor reporting

Deliverables you can expect

• Monthly P and L, balance sheet, and cash flow statements prepared and reviewed
• Job profitability reports and job-to-date cost summaries
• Budgeting and cash-flow planning documents (monthly and quarterly forecasts)
• KPI dashboard with contractor-focused metrics updated on your chosen cadence
• Aged receivables and payables reports with recommended collection or payment strategies
• WIP reports and retainage logs for each active contract
• Documented service agreement register including key dates, change orders, and retention schedules
• Meeting notes and action items from weekly or monthly review sessions
• Fractional CFO deliverables when engaged: scenario modeling, sale readiness package, and capital planning

Pricing model

Pricing for outsourced bookkeeping for contractors is structured to match transaction volume, job complexity, and the level of advisory support required. Typical models include:

• Fixed monthly subscription based on volume of transactions and number of active jobs
• Tiered packages that add job costing, KPI dashboards, and WIP tracking at higher tiers
• Optional fractional CFO support billed as a retainer or hourly engagement for strategy, forecasting, or sale preparationThis transparent approach aligns cost with the scope of work so contractors know what to expect as their business scales.

Onboarding process

Onboarding is designed to minimize disruption and ensure clean, actionable books quickly:

1. Discovery and scoping - review current systems, contracts, and pain points
2. Chart of accounts and job template setup tailored for contracting (materials, labor, equipment, subcontractors, overhead)
3. Connect and automate bank, credit card, payroll, and project management integrations
4. Historical cleanup and reconciliations to correct prior misclassifications and establish a clean starting point
5. First month close and delivery of the initial P and L, job reports, and KPI dashboard
6. Regular meeting schedule is set and cadence begins for ongoing review and planningOnboarding timelines vary by complexity but typically complete within a few weeks for small fleets of jobs and a bit longer for businesses with many open contracts.

How accurate bookkeeping improves profitability

Accurate, timely reporting changes how contracting businesses operate:

• Better pricing and estimating informed by historical job margins and cost trends
• Faster cash collections through disciplined AR management and retainage tracking
• Reduced cost overruns because job-level visibility highlights labor or material variances early
• Improved supplier and subcontractor negotiations by understanding payment capacity and timing
• Lower tax and compliance risk through organized records and proactive accruals
• Enhanced ability to scale or sell with clean financials and documented processes that buyers and lenders expect

Ongoing maintenance and strategic support

Ongoing bookkeeping is more than record keeping; it is a continuous improvement loop:

• Weekly or monthly review meetings to align financials with operational realities
• Monthly KPI tracking to flag trends and corrective actions
• Service agreement updates and change order recording to protect margins
• Periodic forecasting and scenario planning for busy seasons, capital purchases, or bidding strategy
• Fractional CFO engagements for targeted projects like preparing financials for sale, refinancing, or rapid growth plans

Q: What specific contractor reports will I receive each month?

A: Monthly P and L, balance sheet, cash flow, job profitability reports, aged AR and AP, WIP and retainage logs, and a KPI dashboard.

Q: How does job costing work with your bookkeeping service?

A: Job costing assigns labor, material, equipment, and subcontractor costs to each project using a standardized chart of accounts and integrations with payroll and job management systems.

Q: How long does onboarding usually take?

A: Onboarding typically completes within a few weeks for straightforward accounts; more complex histories and many active jobs can take longer to clean and reconcile.

Q: Can you help prepare my business for sale or to get financing?

A: Yes, fractional CFO support includes sale readiness packages, forecasting, valuation prep, and lender-ready financial statements.

Q: How do you charge for bookkeeping and fractional CFO work?

A: Pricing is typically a fixed monthly subscription based on transaction volume and job complexity, with optional fractional CFO services billed as a retainer or hourly engagement.