Accounting and advisory for Construction
Construction is a project business, not a monthly one — profit hides inside individual jobs, and cash is tied up in materials, labor, and retainage long before a single invoice gets paid. Laya gives contractors, trades, and builders clean books with job costing and work-in-progress baked into the close, so you know which jobs make money and where your cash actually is.
The financial challenges Construction face
Job costing and per-project profitability
A company can be profitable overall while bleeding cash on specific jobs. Without labor, materials, equipment, and subcontractor costs tracked against each project, you can't see which jobs, crews, or estimates earn margin and which quietly lose it.
Work-in-progress and over/under-billing
Long jobs span months, so billings rarely match the work performed. Without a WIP schedule, over-billing inflates today's revenue and under-billing hides earned income — distorting your P&L and surprising you (and your bonding agent) at year-end.
Subcontractor and 1099 compliance
Paying subs means collecting W-9s, tracking payments by vendor all year, and filing accurate 1099-NEC forms — plus watching insurance and lien-waiver status. Missing or mismatched filings invite IRS penalties and back-charge disputes.
Retainage and progress billing cash flow
Customers hold 5–10% retainage until completion while you front payroll and materials weeks ahead of getting paid. Progress billings, change orders, and slow draws turn cash flow into the real constraint on how many jobs you can run.
How Laya helps Construction
Job costing and project profitability
We structure your chart of accounts and QuickBooks Online items so every dollar of labor, materials, equipment, and subcontractor cost lands against the right job. Each monthly close shows profit and margin by project — so you can see which jobs, crews, and estimate types actually make money before you bid the next one.
Work-in-progress reporting
We maintain a WIP schedule that compares costs incurred and earned revenue against amounts billed, surfacing over- and under-billing on every open job. Your P&L reflects work actually performed, your balance sheet carries the right assets and liabilities, and your reports are ready for lenders and bonding agents.
Subcontractor and 1099 management
We track payments to every subcontractor and vendor throughout the year, flag missing W-9s before deadlines, and prepare your 1099-NEC filings at year-end. Books stay clean and IRS-ready, so January isn't a scramble to reconstruct who got paid what.
Retainage and progress billing
We book retainage receivable and payable to their own accounts, track progress billings and change orders against each contract, and reconcile draws as they come in. You get a clear view of cash tied up in retainage and what's actually collectible — the numbers you need to plan payroll and take on more work.
What's included
- Monthly close by the 10th business day
- Job costing and project-level profitability reporting
- Work-in-progress (WIP) schedule and over/under-billing tracking
- Subcontractor payment tracking and 1099-NEC preparation
- Retainage and progress-billing tracking
- Vendor and accounts payable management
- Year-end books ready for tax filing and bonding
Frequently asked questions
Can you set up job costing in QuickBooks Online?
Yes. We configure QuickBooks Online with projects, items, and cost categories so labor, materials, equipment, and subcontractor costs are tracked against each job. Every monthly close then reports profit and margin per project, so you can compare jobs and estimate types on real numbers. QuickBooks Online is included in your plan.
Do you handle work-in-progress (WIP) reporting?
We do. As part of each monthly close, we maintain a WIP schedule that measures earned revenue and costs against billings on every open job, surfacing over- and under-billing. That keeps your P&L and balance sheet accurate over the life of long projects and gives you reports lenders and bonding companies expect.
How do you manage subcontractors and 1099s?
We track payments to each subcontractor throughout the year, flag missing W-9s before filing season, and prepare 1099-NEC forms at year-end so your books are clean and IRS-ready. If you need the underlying tax filings handled, those run through our licensed CPA partner network on the Summit ($1,000/mo) or Peak ($1,500/mo) plan.
Can you track retainage and progress billing?
Yes. We book retainage receivable and payable to dedicated accounts and track progress billings, change orders, and draws against each contract. You'll always know how much cash is held in retainage and what's collectible, so you can plan payroll and take on jobs without guessing about cash flow.
How fast are my books closed each month?
By the 10th business day of the following month, every month. Construction cash flow moves fast and bids are time-sensitive, so you manage and estimate on fresh numbers — not job-cost data that's six weeks stale.
Do I need to use QuickBooks Online?
Yes. Laya is cloud-first and runs on QuickBooks Online as the single source of truth, with your bank accounts and vendors connected digitally. We work remotely by email and video, and QuickBooks Online is included in your fixed monthly fee.
Ready to get your books in order?
Book an intro and we'll show you exactly how Laya works for Construction.
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