Book Consultation

Gondaliya CPA

Gondaliya CPA Professional Corporation logo
100% Canadian Owned badge
Menu
Catch-Up Bookkeeping · Construction Companies · Licensed CPA

Catch-Up Bookkeeping for Construction Companies

Behind on the books while projects are still running? We rebuild each project's costs and billings, reconstruct work-in-progress and percentage of completion, restore holdback schedules in both directions, reconcile progress draws to what was certified, and file the returns you are behind on, so your statements satisfy the CRA, your lender and your surety. Licensed Ontario CPA. Flat fee. All fees include HST.

Book Free ConsultationKnow Exact Fees within 2 Minutes
✅ REGISTERED CPA FIRM. VERIFY NOW ON CPA ONTARIO
★
Fully Licensed CPA Ontario
★
1300+ ★★★★★
Google Reviews
★
30-Day Money-Back Guarantee
★
QuickBooks & Xero Certified
Work-in-Progress Rebuilt
Percentage of completion restored project by project
Lender & Surety Ready
Statements in the form your bank and bonding company expect
Back Returns Filed
Outstanding GST/HST, T5018 and T2 returns filed from clean books

Behind on the Books While the Projects Keep Running.

A construction company carries a harder reporting burden than almost any small business. Several projects run at once, each with a contract, a schedule of values, change orders, a draw application certified by somebody else, a holdback retained on the way in and another retained on the way out, and a subcontractor list that changes by the month. Underneath that sit equipment fleets, payroll, WSIB and GST/HST. When the office falls behind, the first casualty is the work-in-progress schedule, and once that is gone the profit figure stops meaning anything.

We rebuild the whole structure from contracts, draw certificates, invoices and bank records: costs and billings per project, percentage of completion, over and under billings, holdbacks in both directions, subcontractor reporting and payroll. If you are a builder behind on your books, our construction accounting team can bring you current. See also our bookkeeping services for construction companies and year-end and T2 filing for construction.

Book Free Consultation
Gondaliya CPA team

Our Construction Catch-Up Bookkeeping Services

📏

Work-in-Progress Rebuild

We reconstruct percentage of completion, over and under billings for every open project.

📋

Progress Draw Reconciliation

We tie each draw to the schedule of values, the certificate issued and the cash received.

💳

Holdbacks Both Directions

We rebuild holdback receivable and payable per project and correct the tax timing on release.

🚚

Equipment & Fleet

We separate owned, leased and financed units, set the CCA pools and allocate cost to projects.

👷

Subcontractors & Payroll

We rebuild the subcontractor ledger for T5018s and reconcile payroll, source deductions and WSIB.

📁

Back Returns Filed

Once the books are rebuilt we file the outstanding GST/HST, T5018 and T2 returns.

How We Catch Up a Construction Company

Rebuilt project by project and period by period, in the order the deadlines demand. All fees include HST.

1

Map the Projects and the Deadlines

A construction catch-up is scoped by project, not only by period.

  • List every project open or closed during the periods behind, with contract values.
  • Identify which GST/HST, T5018 and T2 returns are outstanding.
  • Establish whether a lender, surety or purchaser is waiting on statements.
  • Gather contracts, schedules of values, change orders and draw certificates.
  • Price the whole rebuild as one flat fee before any work starts.
2

Rebuild Costs and Billings Per Project

Everything downstream depends on getting the project ledger right.

  • Reconstruct labour, materials, equipment and subcontractor costs against each job.
  • Load labour at true cost including CPP, EI, WSIB, vacation and benefits.
  • Rebuild the billing history from draw applications and approved change orders.
  • Reconcile each draw to the certificate issued and the deposit received net of holdback.
  • Preserve invoice dates, which the prompt payment regime makes evidentiary.
3

Restore Work-in-Progress

The schedule that turns a pile of transactions into a profit picture.

  • Apply percentage of completion so revenue follows the work, not the billing calendar.
  • Document the estimate of cost to complete for each open project.
  • Calculate over and under billings and place them on the balance sheet correctly.
  • Produce a project-by-project schedule in the format lenders and sureties read.
  • Reconcile the schedule back to the general ledger for every period.
4

Rebuild Holdbacks and Tax Timing

Holdbacks run in two directions and neither follows the invoice.

  • Reconstruct holdback receivable withheld from your draws, project by project.
  • Reconstruct holdback payable retained from your subcontractors.
  • Apply the statutory holdback percentage consistently across the contracts.
  • Apply GST/HST to a holdback on release and payment, not when earned.
  • Flag receivables now releasable but never collected.
5

Equipment, Subcontractors and Payroll

The three places construction books quietly lose money.

  • Split owned, leased and financed equipment, with lease payments divided between interest and principal.
  • Set capital cost allowance pools correctly and allocate equipment cost to projects.
  • Rebuild the subcontractor ledger and prepare the outstanding T5018 slips.
  • Review each worker for employee versus subcontractor status and correct prior periods.
  • Reconcile payroll, source deductions, T4s and WSIB from the same rebuilt records.
6

File, Report and Stay Current

The rebuild is only finished when the right people have the statements.

  • Submit every overdue GST/HST, T5018 and corporate return from reconciled figures.
  • Produce statements with project margins and the work-in-progress schedule attached.
  • Reconcile intercompany balances where an equipment or holding company exists.
  • Request penalty and interest relief wherever the circumstances genuinely warrant it.
  • Move to monthly bookkeeping with the schedule updated every month.

Free Construction Catch-Up Bookkeeping Consultation

Book Your Free ConsultationKnow Exact Fees within 2 Minutes

Book Your Free Construction Consultation

Pick a time that suits you. Evenings and weekends are available until 9 PM.

Calendar not loading? Please book your free consultation here or call 647-212-9559.

Case Studies

Revenue Recognised on Billings, Not Progress

A builder recorded revenue whenever a draw was submitted, so profit swung wildly month to month and two projects appeared far more profitable than they were. We rebuilt costs and billings per project, applied percentage of completion across the affected years, calculated the over and under billings, and restated the statements the lender had been relying on. The figures here are illustrative of the work we do, not a specific client file.

Completion method restored across every project

Bonding Renewal With No Statements

A general contractor's surety asked for current financial statements and a work-in-progress schedule at renewal, and neither existed. We rebuilt eighteen months of project ledgers, produced the schedule with documented estimates of cost to complete, and delivered the statements in the format the surety expected, with the underwriting decision left where it belongs. The figures here are illustrative of the work we do, not a specific client file.

Statements and schedule rebuilt for renewal

Holdbacks Booked on Both Sides at the Wrong Time

A company recognised holdback receivable as revenue when the work was done and claimed the tax on holdback payable before releasing it, distorting several periods in both directions. We reconstructed both schedules per project, corrected the timing to release and payment, and re-filed the affected GST/HST periods. The figures here are illustrative of the work we do, not a specific client file.

Both holdback positions rebuilt and re-filed

Equipment Leases Expensed in Full

A builder with a substantial fleet had expensed every lease and finance payment in full, claimed no capital cost allowance, and allocated no equipment cost to projects, so job margins looked healthier than they were. We separated owned, leased and financed units, set up the pools, split interest from principal, and rebuilt project costing on that basis. The figures here are illustrative of the work we do, not a specific client file.

Fleet reclassified and job margins corrected

Where Construction Company Books Go Wrong

What we find most often when a builder's books are behind, and what each one costs.

ProblemWhy It Matters
Revenue recognised on billingsProfit follows the draw calendar instead of the work performed
No work-in-progress scheduleThe one document lenders and sureties ask for first does not exist
Over and under billings ignoredBilling ahead of progress shows as profit when it is a liability
Holdback timing wrongTax and reporting fall in the wrong period, in both directions
Equipment leases expensed in fullNo capital cost allowance claimed and job margins overstated
Draws never tied to certificatesBillings that cannot be traced to what was actually approved

Construction sits permanently on the CRA's high-risk list, and it is also the industry where lenders look hardest. Rebuilt books therefore have to satisfy two audiences at once, which is why we document the basis of every estimate rather than presenting a reconstruction as a certainty. See our construction audit preparation.

Completion, Holdbacks and Draws: The Rules We Apply

The treatments that decide whether a construction file reconciles, and how we apply each one.

ItemTreatment
Revenue on longer contractsRecognised on percentage of completion, matched to work performed
Billed ahead of progressCarried as a liability, being an overbilling, not as profit
Work performed not yet billedCarried as an asset, being an underbilling
Holdback receivable and payableTracked per project and recognised for tax when released and paid
Subcontractor construction servicesReported on a T5018 with Box 22 gross of GST/HST
Equipment on lease or financeSplit between interest and principal, with CCA pools set correctly

Two exposures run in parallel on a construction file. Unremitted source deductions and unremitted GST/HST can be assessed against directors personally, and that exposure survives dissolving the corporation, which matters because construction groups restructure often. Separately, statements that overstate profit through billings-based revenue or ignored overbillings can put a lender covenant or a bonding facility at risk long before the CRA ever writes. Correcting both on your own initiative is a very different position from having either discovered for you.

What Our Construction Catch-Up Includes

  • Scoping the rebuild by project and by period, with a flat fee agreed before we start
  • Reconstructing labour, materials, equipment and subcontractor costs against each job
  • Rebuilding the billing history from draw applications, certificates and change orders
  • Restoring percentage of completion with documented estimates of cost to complete
  • Calculating over and under billings and placing them correctly on the balance sheet
  • Reconstructing holdback receivable and payable schedules per project
  • Correcting GST/HST timing on progress billings and holdback releases
  • Rebuilding the subcontractor ledger and preparing the outstanding T5018 slips
  • Reconciling payroll, source deductions, T4s, WSIB and the equipment CCA pools
  • Filing every overdue GST/HST, T5018 and corporate return from reconciled books

Know Your Exact Fee Before We Start

Flat fee, fixed in advance. All fees include HST. No hourly billing.

Calculate My Fee

Why Builders Choose Gondaliya CPA for Catch-Up

🏗

Built for Project Accounting

Work-in-progress, draws, holdbacks and equipment handled the way a builder's file actually works.

🏢

Licensed CPA Ontario

A certified CPA team rebuilds and files, not just data entry.

💰

Flat Fee, Upfront

All fees including HST, no hourly billing, scoped before we start.

📊

Lender and Surety Format

Statements and schedules produced in the form the people waiting on them expect.

Google Reviews
CPA Ontario
QuickBooks
Wagepoint
Xero
Stripe
Rotessa
Hubdoc
ADP

Transparent Flat-Fee Construction Catch-Up Pricing

ServiceFeeScopeDetails
Catch-Up Scoping & QuoteFREEOne-timeWe map the projects and periods behind, confirm deadlines and quote a flat fee first.
Single-Entity Catch-UpQuoted upfrontPer backlogProject ledgers, work-in-progress, holdbacks, GST/HST and payroll rebuilt for every period.
Group Catch-UpQuoted upfrontPer backlogOperating, equipment and holding companies rebuilt with intercompany balances reconciled.
Back GST/HST, T5018 & T2 FilingIncludedPer returnEvery overdue return prepared and filed from reconciled books.
Ongoing Monthly BookkeepingQuoted upfrontMonthlyOptional, with the work-in-progress schedule refreshed every month.

All fees include HST, so the number quoted is the number you pay. 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 for an exact figure.

Lender or Surety Waiting? Start This Week.

Flat fee, fixed in advance. All fees include HST. 30-Day Money-Back Guarantee.

Book Free Consultation

Construction Catch-Up Bookkeeping: Cities We Serve

Licensed CPA catch-up bookkeeping for construction companies across Ontario, delivered virtually.

TorontoMississaugaBramptonScarboroughMarkhamVaughanOttawaHamiltonOakvilleAll of Ontario

Frequently Asked Questions

What is catch-up bookkeeping for a construction company?
It is bringing a builder's books up to date when they have fallen behind. We rebuild each project's costs and billings, reconstruct work-in-progress and percentage of completion, rebuild lien holdback receivable and payable schedules, reconcile progress draws to what was certified, sort out subcontractor reporting and payroll, and file the returns you are behind on, so the books satisfy the CRA, your lender and your surety.
How is this different from catch-up bookkeeping for a contractor?
The scale and the reporting. A trades contractor's file turns on job costs, subcontractor slips and holdbacks. A construction company running its own projects adds percentage-of-completion revenue, work-in-progress schedules, progress draws certified by a consultant, lender and surety reporting, retained holdbacks flowing in both directions, and equipment fleets. We build the file the audience actually reads.
How far behind can our books be?
There is no backlog we cannot handle. Whether you are one quarter or several years behind, on one project or a dozen, we rebuild the records period by period and project by project. The longer books sit, the harder the work-in-progress reconstruction becomes, because the site knowledge that explains the numbers walks out the door with the project manager.
Why do construction company books fall behind?
Because the work is on site and the reporting is complex. Multiple projects run at once, each with its own contract, draw schedule, holdback and subcontractor list, while equipment, payroll, WSIB and GST/HST move underneath. Falling behind is common in a busy season; leaving it unfixed is what puts your bonding capacity and your CRA position at risk.
What is percentage of completion and why does it matter?
It is the method that matches revenue and cost to the work actually performed rather than to whatever was billed that month. Without it, a project billed ahead of progress looks profitable and one billed behind looks like a loss, and neither is true. Lenders, sureties and the CRA all expect the completion method on longer contracts, so we rebuild it for each project as we catch up.
What is a work-in-progress schedule?
A project-by-project statement showing contract value, approved change orders, costs incurred to date, estimated cost to complete, percentage complete, revenue recognised, and the resulting over or under billing. It is the single most important document a construction company produces, and it is usually the first thing missing when the books are behind. We rebuild it for every open project.
What are overbillings and underbillings?
Overbilling is billing ahead of the work performed, which is a liability, not profit. Underbilling is work performed but not yet billed, which is an asset. Both appear on the balance sheet once the completion method is applied properly. Books that ignore them show a profit picture that swings with the billing calendar rather than with the actual work.
How do you rebuild holdbacks?
Per project and in both directions. We reconstruct the holdback receivable withheld from your progress draws and the holdback payable you retained from your subcontractors, generally the statutory 10% under Ontario's Construction Act, and we track when each becomes releasable. GST/HST on a holdback follows the release and payment, not the earning, which is a timing error we correct constantly.
When is GST/HST due on a holdback?
When the holdback is released and actually paid, not when the work was performed or invoiced. The same timing applies to reporting the amount on a subcontractor's slip. We rebuild the holdback schedules so both the tax and the reporting fall in the right period across every affected year.
How do you handle progress draws?
We reconcile each draw to the schedule of values in the contract and to what the payment certifier or consultant actually approved, then to the deposit received net of holdback. Draws are where billings, certification and cash most often diverge, and reconstructing that chain is what makes the revenue figure defensible.
What about the prompt payment rules?
Ontario's Construction Act sets fixed statutory windows for payment once a proper invoice is issued, running down the chain from owner to contractor to subcontractor, with an adjudication process for disputes. Bookkeeping matters here because the clock starts on a proper invoice, so your billing records and their dates become evidence. We rebuild the billing history with those dates intact.
Do you prepare the T5018s we are behind on?
Yes. Where construction is your primary activity, payments to subcontractors for construction services are reportable on a T5018 slip and summary each year, with Box 22 showing the gross payment including GST/HST rather than the net. We rebuild the subcontractor ledger, gather the missing identifiers and file the outstanding slips.
Where does worker classification fit into the rebuild?
We review each worker against the CRA's control, tools and integration tests. A worker treated as a subcontractor who is functionally an employee brings retroactive CPP, EI and income tax with penalties, and on a construction file the exposure compounds across crews and years. We flag it and correct the treatment as part of the catch-up.
What about our equipment fleet?
Equipment is usually a builder's largest capital position and its most mishandled one. We separate owned from leased and financed units, set up the capital cost allowance pools correctly, split lease payments between interest and principal where they were expensed in full, and allocate equipment cost to projects so job margins reflect what the machines actually cost to run.
Can you rebuild books for joint ventures or partnership projects?
Yes. Joint venture and partnership arrangements need their own accounting: your proportionate share of costs and revenue, the intercompany balances between the venture and your corporation, and reporting each participant can rely on. These are frequently the messiest records we receive, and they are also the ones lenders examine most closely.
Will this restore our bonding capacity?
It restores what a surety needs to assess you, which is the necessary first step. Sureties underwrite on working capital, equity and a credible work-in-progress schedule, and they cannot underwrite books that do not exist. We rebuild the statements and the schedule; the bonding decision stays with the surety, and we will not suggest otherwise.
Do you file the GST/HST returns we are behind on?
Yes. Once the books are rebuilt and the tax timing on progress billings and holdbacks is corrected, we prepare and file the outstanding returns for each period with the input tax credits claimed on materials, equipment, fuel and subcontractors. See our HST return filing.
Will you also deal with the overdue T2 returns?
Yes, and that is usually the objective. With the bookkeeping current we prepare and submit each overdue T2 from figures that reconcile, applying the completion method consistently year over year. See our catch-up corporate tax filing for construction companies.
What records do you need?
Contracts and schedules of values, change orders, progress draw applications and certificates, subcontractor agreements and invoices, supplier and material invoices, equipment leases and loan agreements, payroll and WSIB records, bank and credit card statements, and any prior filings. Where records are incomplete we reconstruct from bank data and contract documents.
Our project manager has left and nobody can explain the numbers. Can you still do this?
Yes, though it changes the method. Without site knowledge we work from contracts, draw certificates, invoices and bank activity, and we document the basis for every estimate of cost to complete rather than presenting a guess as a fact. That documentation is what makes the rebuilt statements defensible to a lender or the CRA.
Can you correct work a previous bookkeeper did badly?
Yes, and it is most of what arrives. We commonly find revenue recognised on billings rather than progress, no work-in-progress schedule at all, holdbacks booked when earned, equipment leases expensed in full, missing T5018s and job costs carried at base wage. We review what was done and correct the coding project by project and period by period.
How long does construction catch-up take?
It depends on the number of open projects, how far behind you are and the state of the contract documentation. A few quarters behind on two projects can be days of work; several years across a portfolio takes longer. The scope is set first, the fee is fixed, and we begin wherever a deadline is closest.
How much does construction catch-up bookkeeping cost?
We quote a flat fee upfront based on the number of periods, projects and entities involved, with no hourly billing, and all fees include HST. Nothing changes once the scope is agreed. Please use our pricing calculator for an exact figure.
What accounting software do you use?
QuickBooks Online or Xero, configured for project-level costing, holdback tracking and subcontractor reporting. We rebuild your catch-up periods in the software and hand the file back ready to keep running. See our bookkeeping services for construction companies.
What if we already have CRA letters or an audit underway?
We can still act, and the sooner the better. We rebuild the books, prepare the outstanding slips and returns, and deal with the agency on your behalf. Where a review is already open, see our CRA audit support for construction companies and our construction audit preparation.
Can penalties and interest be reduced?
Sometimes. Filing the correct returns stops further penalties accruing, and where illness, disaster or another circumstance beyond your control caused the delay, taxpayer relief can be requested. We assess the grounds honestly, prepare the submission where they exist, and say plainly when they do not.
Do you handle multiple corporations in a group?
Yes. Construction groups commonly run an operating company, an equipment company and sometimes a holding company, with intercompany charges flowing between them. We rebuild each entity, reconcile the intercompany balances so they agree in both directions, and prepare statements the group can actually be assessed on.
Will you produce financial statements once we are current?
Yes. Once the books reconcile we produce statements with project-level margins and a work-in-progress schedule, in the form lenders, sureties and the CRA expect to receive. See our compilation reports for construction companies.
Will you keep our books current afterwards?
If you want. Most builders move to monthly bookkeeping once the catch-up is done, with a work-in-progress schedule updated each month so the profit picture stays honest between year-ends. Staying current also protects the bonding and lender relationships the rebuild just restored.
How do we get started?
Please book a free consultation and tell us how many projects are open, how far behind the books are, whether a lender or surety is waiting on statements, and which returns are outstanding. We scope the rebuild, quote a flat fee, list exactly which documents to send, and start with whatever carries a deadline. Book Free Consultation →

Meet Your Construction Bookkeeping Team

Sharad Gondaliya, CPA

Sharad Gondaliya, CPA

Founder & Managing Director
Gondaliya CPA Professional Corporation

Sharad advises construction companies on catch-up rebuilds, percentage of completion, holdbacks and the statements lenders and sureties require.

Vandana Goel, CPA

Vandana Goel, CPA

Senior Accountant
Gondaliya CPA Professional Corporation

Vandana rebuilds project ledgers, draw reconciliations, holdback schedules and equipment pools period by period until the books are current.

What Our Clients Say

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

Related Industries We Serve

Trades and project-based businesses we bring current and keep current.

Construction Companies

  • Project ledgers and work-in-progress
  • Holdbacks and progress draw reconciliation
  • Lender and surety reporting packages

Skilled Trades

  • Owner-operator and small crew books
  • Equipment capital cost allowance
  • WSIB and payroll compliance

Real Estate and Development

  • Project and holding structures
  • Development cost tracking
  • Statements for lenders and investors

Small Businesses

  • Flat-fee books, payroll and tax
  • Catch-up work and ongoing compliance
  • One firm from cleanup to filing

Projects Running, Books Behind? Let a CPA Rebuild Them.

Work-in-progress restored, holdbacks reconstructed, draws reconciled and every overdue return filed, in statements your lender and surety can rely on. Flat fee. All fees include HST.

Licensed CPA Ontario
1300+ Five-Star Reviews
WIP & Holdbacks Handled
Flat Fee, Including HST
Book Free ConsultationConstruction Bookkeeping
Scroll to Top