U.S. construction companies manage project budgets, subcontractors, materials, equipment, labor, retainage, change orders and progress billings across multiple jobs. Effective accounting connects job-cost records with the general ledger so owners can see cost-to-complete, committed costs, cash flow and profitability by project.
LMA Accounting & Consulting helps contractors organize financial records and management reporting for general contractors, specialty trade contractors and other construction businesses. The goal is clearer job costing, reliable work-in-progress reporting and better visibility into project performance.
Costs need to be coded consistently by job, cost code and cost type—such as labor, materials, equipment, subcontractors and other job costs. Inaccurate coding can hide overruns and make estimates less reliable.
Contractors often compare costs incurred and estimated costs to complete against contract value and billings. WIP schedules may identify underbillings, overbillings and projects where estimated costs exceed expected revenue.
Construction contracts may require revenue recognition over time or at a point in time under ASC 606, depending on the contract and applicable criteria. Percentage-of-completion is a common industry phrase, but the method used should align with the company's accounting policy and applicable U.S. GAAP.
Approved change orders, pending change orders, claims and unpriced work can affect contract value, margin forecasts and revenue estimates. These items need clear documentation and appropriate review before they are included in financial reporting.
Progress billings, AIA-style pay applications, retainage receivable and retainage payable can cause a gap between recognized revenue, amounts billed and cash collected. Billing schedules and collections need regular review.
Subcontractor invoices, lien waivers, certificates of insurance, conditional and unconditional lien releases, and payment timing can affect job administration and cash management. Accounting records should align with approved commitments and subcontract terms.
Owned equipment, equipment rentals, field payroll, union payroll where applicable, workers' compensation, payroll taxes, general conditions and home-office overhead can materially affect job profitability.
Depending on the contractor’s business model and available project data, reporting can include:
LMA helps U.S. startups and SaaS ventures build an accounting process that supports both day-to-day operations and long-term growth. We focus on accurate books, meaningful reporting and financial visibility that founders can actually use.
We help organize labor, materials, equipment, subcontractor costs and other direct expenses by project and cost code, making it easier to compare actual costs with the estimate and identify budget variances.
We help maintain project-level schedules that bring together contract value, approved change orders, costs incurred, estimated costs to complete, billings to date and cash collected. These schedules can support WIP review and help identify underbilling or overbilling positions.
We help organize contract documentation, billing milestones, progress data and revenue schedules to support the company's revenue-recognition policy under ASC 606, in coordination with management and its CPA when needed.
We help reconcile pay applications, customer invoices, retainage receivable, accounts receivable aging and cash receipts so management can better understand billing status and collection timing.
We help organize subcontractor commitments, purchase orders, vendor bills, change orders and accounts payable aging. Where applicable, records can be coordinated with lien-waiver and compliance tracking maintained by the team.
We help bring together expected customer collections, retainage releases, payroll, material purchases, subcontractor payments, equipment costs and debt service to support a practical short-term cash-flow forecast.
We help classify field labor, shop labor, equipment costs, insurance, permits, bonding costs and general conditions so project costs and indirect expenses are presented consistently.
If job costs are misclassified, accounts are unreconciled or project schedules are behind, we help clean up historical records and establish a more dependable monthly close process.
"Working with this firm has completely transformed how we manage our finances. Their team is proactive, responsive, and always one step ahead when it comes to tax deadlines and planning."
"Their attention to detail and ability to explain complex financial concepts in a simple way is unmatched. We finally feel in control of our books and confident in our growth strategy."
"Since partnering with them, we’ve cut down hours of manual work and gained access to accurate, real-time financial reports. It’s like having an internal finance department — without the overhead."
"They not only fixed our messy bookkeeping, but also gave us the financial clarity we needed to secure funding. Their support has been instrumental to our success."
Construction decisions depend on timely job-cost information and realistic project forecasts. LMA Accounting & Consulting helps bring project costs, billings, commitments and cash flow into a clearer financial picture so owners can manage margins and make informed decisions as the business grows.
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