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Construction Bookkeeping · Job Costing · Licensed CPA

Bookkeeping Services for Construction Companies

Job-costed books that show the profit on every contract. We track work in progress, holdbacks, progress billings, subcontractor and T5018 reporting, HST and payroll, kept current monthly by a licensed CPA firm. Flat fee. All fees include HST.

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Construction Companies
Job-costed bookkeeping and construction accounting
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Bookkeeping Services for Construction Companies

Construction bookkeeping is not ordinary bookkeeping. A contractor's profit is earned contract by contract, over months, with materials, labour, subcontractors, progress billings and holdbacks all moving at different times. Books that simply total income and expenses hide how each job is really doing. Proper construction bookkeeping is built around jobs: it tracks cost and revenue by contract, monitors work in progress, records holdbacks correctly, and handles subcontractor and T5018 reporting, so you can see the true margin on every project.

We set up and maintain your books around job costing, keep work in progress, holdbacks and progress billings current, handle HST on construction and payroll tracked to jobs, and prepare the T5018 reporting, so your records are accurate and ready for tax, lenders and bonding. Because we are a full CPA firm, the same office keeps the books and files your corporate tax. See our construction accounting page and our main bookkeeping services page for the full picture.

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Gondaliya CPA team - bookkeeping services for construction companies

Our Construction Bookkeeping Services

📋

Job Costing Setup

We assign materials, labour, subcontractors and equipment to each contract, so every job's true margin is visible.

💵

Work in Progress Tracking

We track costs and billings on every open contract, showing over- and under-billing at any point in the job.

📊

Holdbacks Recorded Right

We record holdbacks separately as receivables and payables, so your balance sheet and working capital are correct.

💵

Subcontractors & T5018

We record subcontractor payments and holdbacks and prepare the annual T5018 contract-payment reporting.

🧾

HST & Payroll on Jobs

We handle HST on progress billings and costs, and record payroll to jobs so labour flows into job costing.

📈

Job & WIP Reporting

Profit-by-contract, work-in-progress and holdback reports that support your estimating, cash flow and bonding.

Construction Bookkeeping by a Licensed CPA

Books built around your jobs, kept current every month. From job costing to year-end handover. AFFORDABLE flat-fee pricing.

1

Setting Up Job Costing

The foundation of construction bookkeeping.

  • Assign materials, labour, subcontractors and equipment to the contract they belong to.
  • Structure the books with classes or projects so each job's margin is visible.
  • Record change orders against the specific contract so scope changes stay tracked.
  • Set up the chart of accounts to fit how your trade runs its jobs.
  • Give you job cost reports that show the real profit on each contract.
2

Tracking Work in Progress

Knowing where every open contract stands.

  • Track costs incurred to date and billings on each open contract.
  • Show over-billing where billings run ahead of costs, and under-billing where costs run ahead.
  • Maintain the work-in-progress schedule that drives accurate statements.
  • Flag contracts drifting from their estimate so you can act early.
  • Keep WIP current so cash flow and margin are visible, not a year-end surprise.
3

Holdbacks and Progress Billings

Recorded correctly on both sides.

  • Record holdbacks receivable and payable separately from regular accounts.
  • Record progress billings as they are issued, matched to each contract.
  • Handle HST timing on progress billings and holdbacks under the specific rules.
  • Track when holdbacks release so you can plan cash flow around them.
  • Keep the balance sheet and working capital accurate for lenders and sureties.
4

Subcontractors and T5018

Contract-payment reporting done right.

  • Record subcontractor invoices, payments and holdbacks against each job.
  • Confirm subcontractor-versus-employee treatment where it is in question.
  • Track total contract payments to each subcontractor through the year.
  • Prepare and file the annual T5018 slips and summary accurately and on time.
  • Keep the subcontractor records clean for both tax and CRA compliance.
5

HST and Payroll on Jobs

The compliance that runs alongside the books.

  • Record HST on progress billings and claim input tax credits on costs.
  • Keep return-ready HST figures current and file through our HST service.
  • Record payroll to jobs so labour flows into job costing.
  • Handle union or prevailing-wage recording where it applies.
  • Coordinate remittances and T4s alongside the bookkeeping.
6

Reporting and Year-End Handover

One firm for the books, the HST and the corporate tax.

  • Provide job cost, work-in-progress and holdback reports each month.
  • Keep the statements ready for a compilation, review, surety or lender.
  • Hand the year-end straight to corporate tax from clean, job-costed records.
  • Keep the books current so nothing is reconstructed at year end.
  • Deliver the whole setup, books to corporate tax, from one CPA firm.

    • Free Construction Bookkeeping Consultation

    Book Your Free ConsultationKnow Exact Fees within 2 Minutes

    Free Construction Bookkeeping Consultation

    Case Studies: Construction Bookkeeping

    General Contractor, Toronto (Job Costing Set Up)

    A general contractor had one bank balance and no idea which jobs made money. We set up job costing in QuickBooks Online, allocated materials, labour and subcontractors to each contract, and produced monthly profit-by-job reports, so the owner could see which work to bid and which to drop. The figures here are illustrative of the work we do, not a specific client file. Bookkeeping Services →

    Profit visible on every contract

    Mechanical Subcontractor, Mississauga (T5018 & Holdbacks)

    A mechanical subcontractor was behind on subcontractor tracking and holdbacks. We reconstructed the job records, recorded holdbacks receivable and payable correctly, tracked contract payments, and filed the annual T5018, so the books were clean and CRA-compliant. The figures here are illustrative of the work we do, not a specific client file. Construction Accounting →

    Holdbacks and T5018 brought current

    Growing Contractor, Brampton (WIP & Bonding-Ready Books)

    A contractor pursuing a larger bonding program had disorganised records. We brought the books current, built the work-in-progress schedule with over- and under-billing, and kept the statements accurate, so the surety and lender had clean numbers to assess. The figures here are illustrative of the work we do, not a specific client file. Get Started →

    WIP built, books bonding-ready

    Established Contractor, Ontario (Monthly Books + Corporate Tax)

    An established contractor was doing books once a year and scrambling at tax time. We moved them to monthly job-costed bookkeeping and coordinated the T2 from the same office, so the year-end flowed straight from clean records with no reconstruction. The figures here are illustrative of the work we do, not a specific client file.

    Monthly books, seamless year-end

    Ordinary Bookkeeping vs Construction Bookkeeping

    A contractor's profit is earned job by job. Ordinary bookkeeping hides that; construction bookkeeping shows it.

    ConsiderationOrdinary BookkeepingConstruction Bookkeeping
    Profit viewOne company totalMargin tracked by contract
    Work in progressNot trackedCosts vs billings on every open job
    HoldbacksBuried in regular accountsRecorded separately, receivable and payable
    SubcontractorsExpensed without reportingTracked and reported on the annual T5018
    Bonding readinessStatements slow or unusableWIP and working capital ready for a surety

    What Proper Construction Bookkeeping Must Cover

    Recording transactions is only the start. These items are what make a contractor's books actually useful.

    ItemWhy It Matters for Your CompanyHow We Handle It
    Job costingYou cannot bid well without knowing each job's marginEvery cost allocated to its contract
    Work in progressOver- and under-billing affect profit and cash flowWIP schedule maintained on open contracts
    HoldbacksThey affect the balance sheet and working capitalRecorded separately, receivable and payable
    Subcontractor reportingT5018 is a CRA requirement for the industryPayments tracked and T5018 filed annually
    HST timingProgress billings and holdbacks follow specific rulesHST recorded correctly on billings and costs
    ReconciliationUnreconciled books cannot be trusted or filedBank and loan accounts reconciled monthly
    Current recordsYear-end reconstruction is costly and error-proneBooks kept current on a monthly cycle

    Clean, job-costed bookkeeping is the foundation for everything else, tax, financing and bonding. Bookkeeping records and organises your numbers; it is not an assurance engagement, and a surety or lender may separately require a compilation or review, which we can also provide. Well-kept books make those far cheaper and faster. For the full picture, see our bookkeeping services and construction accounting pages.

    What Is Included in Our Construction Bookkeeping Service

    Everything a contractor needs to keep clean, job-costed books. No hourly billing. All fees include HST.

    IncludedWhat We Do
    Job costing setupWe structure the books so every job's margin is visible.
    Monthly bookkeepingWe record and reconcile transactions on a monthly cycle.
    Work in progressWe maintain the WIP schedule with over- and under-billing.
    HoldbacksWe record holdbacks receivable and payable correctly.
    Subcontractors and T5018We track contract payments and file the annual T5018.
    HST and payrollWe keep HST return-ready and record payroll to jobs.
    Job and WIP reportingWe provide profit-by-job, WIP and holdback reports monthly.
    Corporate tax coordinationWe hand the year-end straight to the T2 from the same office.

    The Construction Bookkeeping Mistakes We Prevent

    #MistakeWhy It HurtsHow We Prevent It
    1No job costingYou cannot tell which contracts make moneyEvery cost allocated to its job
    2Ignoring work in progressProfit and cash flow are misstatedWIP tracked on every open contract
    3Holdbacks buried in regular accountsBalance sheet and working capital are wrongHoldbacks recorded separately
    4Missing the T5018 filingCRA penalties for the construction industrySubcontractor payments tracked, T5018 filed
    5Wrong HST timing on progress billingsOver- or under-remitting HSTHST recorded to the specific rules
    6Untracked change ordersLost margin on the contractChange orders recorded to the job
    7Mixing personal and company moneyDistorts the books and the tax positionClean separation maintained
    8Leaving books until year endCostly reconstruction and lost detailBooks kept current every month

    Why Choose Gondaliya CPA for Your Construction Bookkeeping?

    📋

    Built Around Your Jobs

    Job costing, work in progress and holdbacks tracked properly, so you see the margin on every contract.

    📊

    Licensed CPA Firm

    Your books are kept by a licensed CPA firm and flow straight into HST, T5018 and corporate tax.

    🏗

    Construction Experience

    Job-costing, WIP, holdbacks, T5018 and corporate tax for contractors of every trade, all from one office.

    🤝

    AFFORDABLE Flat Fee

    Quoted upfront, all fees including HST, no hourly billing. 30-Day Money-Back Guarantee. 60-Day Fees-Matching Policy.

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    CPA Ontario
    QuickBooks Advisor in Ontario
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    Rotessa Partner in Ontario
    Hubdoc
    ADP partner in Ontario

    Transparent Flat-Fee Pricing

    No hourly billing. No surprises. You know your exact fee before we start. All fees include HST.

    ServiceFeeIncludes
    Monthly construction bookkeepingQuoted upfrontJob costing, WIP, holdbacks, reconciliation and monthly job reports.
    Bookkeeping plus HST filingQuoted upfrontMonthly books with HST recorded on billings and the return filed.
    Bookkeeping plus payroll and T5018Quoted upfrontBooks with payroll to jobs and the annual T5018 contract-payment reporting.
    Catch-up bookkeepingQuoted upfrontRecords and job costing brought current and reconciled before ongoing work.
    Free consultationFREEScope review and exact flat-fee quote before any work begins.

    All fees include HST, so the number quoted is the number you pay. Fees depend on the size and complexity of the business and the state of the records. Payment is by Interac e-Transfer to info@gondaliyacpa.ca with auto-deposit enabled and the security question set to Not Applicable. Please use our pricing calculator to know your exact fee.

    How It Works

    Four steps. The heavy lifting sits with us.

    1

    Consult

    We learn your trade, how many contracts you run and the state of your books, then quote a flat monthly fee.

    2

    Setup and Catch-Up

    We set up job costing, bring the books current where needed, and reconcile the accounts.

    3

    Monthly Bookkeeping

    We keep the books current each month, tracking jobs, WIP, holdbacks, HST and payroll.

    4

    Reports and Year-End

    We deliver monthly job and WIP reports and hand the year-end straight to corporate tax.

    Construction Bookkeeping: Cities We Serve

    We keep construction bookkeeping for contractors across every Ontario city and Canada. No distance limits, no extra fees.

    Frequently Asked Questions

    What does bookkeeping for a construction company involve?
    Construction bookkeeping goes beyond recording income and expenses. It tracks costs by job, monitors work in progress and progress billings, records holdbacks correctly, handles subcontractor payments and T5018 reporting, and keeps HST and payroll current. Because profit is measured contract by contract, the books have to be built around jobs, not just the calendar. We set them up that way.
    Why is construction bookkeeping different from regular bookkeeping?
    A contractor's profit is earned on individual contracts that span months, with costs, billings and holdbacks moving at different times, so ordinary bookkeeping that just totals income and expenses hides how each job is really doing. Construction bookkeeping tracks cost and revenue by job and handles holdbacks and progress billings. We build the books to show job-level results.
    What is job costing and why does it matter?
    Job costing assigns every cost, materials, labour, subcontractors and equipment, to the specific contract it belongs to, so you can see the true profit on each job rather than a single company total. It is the foundation of construction bookkeeping and of any reliable estimate. We set up job costing so each contract's margin is visible.
    How do you track work in progress for a contractor?
    We track costs incurred to date and billings on each open contract, so the books show over-billing (billings ahead of costs) and under-billing (costs ahead of billings) at any point. This work-in-progress picture is essential for accurate financial statements and for understanding cash flow. We maintain the WIP schedule as part of the bookkeeping.
    How are holdbacks recorded in construction bookkeeping?
    Holdbacks, amounts retained on contracts until completion, are recorded separately as receivables or payables rather than buried in regular accounts, because they affect both your balance sheet and your working capital. Misrecording holdbacks distorts the books. We record and track holdbacks correctly on both the receivable and payable side.
    What is a T5018 and do I need to file one?
    A T5018 is the statement of contract payments that a business in the construction industry must file to report payments to subcontractors. If you pay subcontractors, you generally have to file T5018 slips and a summary each year. We track subcontractor payments through the year and prepare the T5018 filing so it is accurate and on time.
    Do you handle subcontractor payments and reporting?
    Yes. We record subcontractor invoices and payments, track holdbacks on them, confirm whether a worker is a subcontractor or an employee where that is in question, and prepare the annual T5018 reporting. Getting subcontractor treatment right matters for both tax and CRA compliance. We keep this part of the books accurate and current.
    How is HST handled for a construction company?
    Most construction work is taxable for HST, so you generally charge HST on your invoices and claim input tax credits on your costs, though new residential construction and certain rebates have their own rules. We record HST correctly on progress billings and costs, keep the return-ready figures current, and file the HST return through our filing service.
    Do you track HST on progress billings and holdbacks?
    Yes. HST timing on progress billings and holdbacks follows specific rules, and getting it wrong causes errors on the HST return. We record HST on progress billings as they are issued and handle the holdback treatment correctly, so your HST filings match your contracts and you neither over-remit nor under-remit.
    Can you keep my contractor bookkeeping current if I have fallen behind?
    Yes. Many contractors fall behind during busy build seasons. We bring your bookkeeping current, reconstruct the job costing and WIP where needed, reconcile the bank and loan accounts, and then keep it current going forward. Catch-up first, then ongoing, so your books are reliable for tax, lenders and bonding.
    How often should a construction company's books be updated?
    Monthly is usually right for an active contractor, so job costs, billings and holdbacks stay current and you can see where each contract stands, though very busy operations may want it more frequently. Waiting until year end hides problems. We keep your books on a monthly cycle so the numbers are always current and useful.
    Do you use QuickBooks or Xero for construction bookkeeping?
    We work in QuickBooks Online and Xero, setting them up with the job costing, classes or projects, and reporting a contractor needs. We choose and configure the platform to fit how you run jobs, so the software supports job-level tracking rather than fighting it. We maintain the books in the platform that suits your business.
    Can you track equipment and vehicle costs by job?
    Yes. Equipment and vehicle costs, fuel, repairs, and where appropriate an equipment charge-out, can be tracked and allocated to jobs so each contract carries its fair share of these costs. This gives a truer job margin than leaving equipment as a lump overhead. We set up the tracking to suit your fleet and equipment.
    Do you handle payroll for construction workers?
    We coordinate construction payroll, including recording labour to jobs so it flows into job costing, alongside our payroll service for remittances and T4s. Where union or prevailing-wage rules apply, we record them correctly. Labour tracked to jobs is a core part of construction bookkeeping, and we keep it aligned with the payroll filings.
    What reports do you provide to a construction company?
    We provide job cost reports showing profit by contract, a work-in-progress schedule, over- and under-billing, holdback positions, and the usual financial statements, so you can see both each job and the whole company. These reports support your estimating, your cash flow and any lender or surety. We tailor the reporting to what you actually use.
    How does good bookkeeping help with bonding and financing?
    Sureties and lenders rely on clean, current financial statements with correct work-in-progress, holdbacks and working capital to assess a contractor, and disorganised books slow or block bonding and credit. Well-kept construction bookkeeping produces statements they can rely on. We keep the books in the shape bonding and financing require.
    Can you prepare statements a surety or lender will accept?
    We keep the bookkeeping so that the financial statements, including work in progress, holdbacks and working capital, are accurate and ready for a surety or lender, and we can coordinate a compilation or review engagement where one is required. Clean books are the starting point for any assurance. We prepare the foundation the statements are built on.
    Do you handle percentage-of-completion accounting?
    Yes, where it applies. Many contractors recognise revenue on a percentage-of-completion basis, matching revenue to the work done using costs incurred against total estimated costs, and this depends on accurate job costing. We maintain the cost data and the calculation, so revenue is recognised correctly rather than distorting your reported profit.
    What is the difference between over-billing and under-billing?
    Over-billing means you have billed a contract ahead of the costs incurred, and under-billing means costs have run ahead of billings. Both must be tracked, because they affect reported profit and the working capital a surety examines. We calculate and present these positions on every open contract so the books reflect reality.
    Can you coordinate my corporate tax filing with the bookkeeping?
    Yes. Because we are a full CPA firm, the same office keeps your construction books and files your T2 corporate return, so the year-end flows straight from clean, job-costed records without a handover. Coordinating both avoids duplicated work and year-end surprises. We handle the bookkeeping and the corporate tax together.
    Do you work with contractors of all trades?
    Yes. We keep the books for general contractors and for specialty trades, electrical, mechanical, plumbing, framing, concrete, landscaping and more, adapting the job costing and reporting to how each trade runs its contracts and holdbacks. The construction bookkeeping principles are the same, applied to your trade. We fit the setup to your work.
    How do you handle change orders in the books?
    Change orders are recorded against the specific contract they belong to, so the contract's revenue, costs and margin reflect the revised scope rather than the original estimate. Untracked change orders are a common source of lost margin. We record change orders to the job so the numbers stay accurate as the contract evolves.
    How do you help construction cash flow through the books?
    Good construction bookkeeping shows the timing of costs, progress billings and holdback releases, so you can see cash coming in and going out on each contract rather than being surprised. Tracking billings against costs and knowing when holdbacks release helps you plan draws and supplier payments. We keep the numbers current so cash flow is visible.
    Can you help me see which jobs are actually profitable?
    Yes. That is the point of job costing. By assigning every cost to its contract and comparing it to the billings, we produce job cost reports that show the real margin on each job, so you can see which types of work and which clients actually make money. We give you the numbers to estimate and bid better.
    How do you price construction bookkeeping?
    We quote a flat monthly fee based on the number of contracts, transaction volume and payroll, so you know the cost upfront with no hourly billing. Catch-up work, if needed, is quoted separately before we start. All fees include HST. We give you a clear, fixed quote after understanding how your construction business runs.
    What records do I need to provide for construction bookkeeping?
    You provide bank and loan statements, supplier and subcontractor invoices, customer contracts and progress billings, holdback details, payroll information and equipment costs, ideally through our secure portal. The more complete the records, the more accurate the job costing. We give you a clear checklist and a simple way to submit everything.
    Is my construction company's financial information kept confidential?
    Yes. Your financial information is handled confidentially and shared only with the CRA as required and with anyone you authorise, such as a lender or surety. Confidentiality is fundamental to how a CPA firm operates. We protect your information throughout the engagement, and everything moves through our secure portal.
    Do you serve construction companies across Ontario and Canada?
    Yes. We keep construction bookkeeping for contractors across every Ontario city and Canada, working entirely remotely through cloud accounting and a secure portal, so there are no distance limits and no extra fees. Wherever your projects are, we can keep the books. We serve contractors GTA-wide and nationally from our office.
    Can Gondaliya CPA handle my construction bookkeeping?
    Yes. We set up and maintain job costing, work in progress, holdbacks, subcontractor and T5018 reporting, HST and payroll tracking, and coordinate your corporate tax, so your construction books are accurate and ready for tax, lenders and bonding. See our construction accounting page for the full picture. Fees are an AFFORDABLE flat amount including HST, quoted upfront, paid by Interac e-Transfer to info@gondaliyacpa.ca, auto-deposit enabled, security question Not Applicable.
    How do I get started?
    Please book a free consultation and tell us your trade, how many contracts you run, and the state of your current books. We confirm what your construction bookkeeping needs, quote a flat monthly fee, and set out what we need to begin. Book Free Consultation →

    Meet Your Construction Bookkeeping Team

    Sharad Gondaliya CPA

    Sharad Gondaliya, CPA

    Founder & Managing Director
    Gondaliya CPA Professional Corporation

    Sharad leads construction bookkeeping, job costing and corporate tax for contractors of every trade.

    Vandana Goel CPA

    Vandana Goel, CPA

    Senior Accountant
    Gondaliya CPA Professional Corporation

    Vandana handles the monthly bookkeeping, job costing, WIP, holdbacks, HST and T5018 reporting.

    What Our Clients Say

    1300+ five-star reviews from business owners across Ontario and Canada.

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    Get Construction Bookkeeping Built Around Your Jobs.

    Gondaliya CPA sets up job costing, keeps your books current each month with WIP, holdbacks, HST and T5018, and hands the year-end straight to corporate tax, so you see the margin on every contract. Flat fee. All fees include HST.

    Licensed CPA Ontario
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    30-Day Money-Back Guarantee
    Flat-Fee, Including HST
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