Accounting for Construction Companies and Skilled Trades

Construction businesses need accounting information that reflects what is happening on each project, not only what remains in the bank account at month end.

Seniuk and Marcato provides accounting, bookkeeping, corporate tax and financial reporting services to construction companies, contractors and skilled trades in Edmonton and throughout Alberta. We help owners understand job profitability, manage year end reporting and maintain accounting records that support better business decisions.

Construction Accounting Has Different Demands

A growing construction company can be profitable and still face significant pressure on cash.

Labour and material costs may be paid long before a progress invoice is collected. Holdbacks delay part of the cash receipt. Change orders may be completed before they are formally approved or billed. Equipment purchases and financing can make monthly results difficult to interpret.

The accounting system should help management understand these timing differences and identify problems before year end. It should also provide reliable information for tax filings, financing discussions, bonding requirements and decisions about future work.

Questions Your Accounting Should Help Answer

• Which jobs are producing the strongest margins?
• Are labour and material costs consistent with the original estimate?
• Have all approved change orders been billed?
• How much remains outstanding in progress billings and holdbacks?
• Does the company have enough working capital for upcoming payroll and supplier payments?
• Are subcontractor payments and T5018 information being tracked properly?
• Are GST, payroll and corporate tax obligations current?
• Is the bookkeeping detailed enough to support year end reporting and management decisions?

Our Construction Accounting Services

Year End Financial Statements

We prepare compilation, review and audit engagements based on the company’s requirements. The appropriate engagement may depend on the needs of owners, lenders, sureties, regulators or other users of the financial statements.

Corporate Tax and Tax Planning

We prepare corporate income tax returns and assist with year end tax planning, shareholder compensation, capital asset purchases and other matters affecting owner managed businesses.

Bookkeeping and Accounting Support

Our team can provide ongoing bookkeeping or work with an existing internal bookkeeper. Services can include transaction recording, bank and credit card reconciliations, GST reporting, payroll support, accounts payable, accounts receivable and year end preparation.

Job Costing and Project Reporting

We can help improve the way revenue, labour, materials, subcontractors, equipment and other costs are assigned to individual projects. Reliable job costing gives management better information for estimating, pricing and project review.

Cash Flow and Working Capital

We help owners interpret receivables, payables, holdbacks, debt and upcoming tax obligations so that profitable growth does not create avoidable cash flow pressure.

GST, Payroll and T5018 Support

Construction businesses may have recurring GST, payroll and subcontractor reporting obligations. We can assist with the accounting records and filings required to keep these areas organized.

Equipment and Financing

Equipment purchases, leases and loans affect both the balance sheet and operating results. We help ensure these transactions are recorded properly and that the related financial information is understandable to management.

Growth, Succession and Transactions

As a company grows, the owners may require assistance with incorporation, reorganizations, acquisitions, financing, succession planning or a future sale. Early planning allows accounting and tax considerations to be addressed before a transaction is underway.

Who We Work With

Our construction and trades services may be suitable for:

• General contractors
• Commercial and residential builders
• Electrical, plumbing and mechanical contractors
• Excavation, concrete and paving companies
• Roofing, framing, drywall and finishing trades
• Renovation companies
• Equipment and industrial service businesses
• Other owner managed companies working on a project or contract basis

A Practical Approach

The appropriate accounting arrangement depends on the size of the company, the quality of its existing records and the information the owners need. Some clients require complete bookkeeping and year end services. Others have capable internal staff and need professional oversight, financial statements, tax preparation and advice when significant matters arise.

We begin by reviewing the current accounting process, reporting needs and filing obligations. From there, we can recommend a practical scope of service without adding unnecessary work.

Frequently Asked Questions

Do you only work with large construction companies?

No. The appropriate service depends more on the complexity of the business and the assistance required than on revenue alone. We work with owner managed companies at different stages of growth.

Can you work with our existing bookkeeper?

Yes. We can work with an internal or external bookkeeper, review the year end records and provide guidance on items that require accounting or tax attention.

Can you take over the bookkeeping?

Yes. Depending on capacity and the condition of the records, our team can provide ongoing bookkeeping and related reporting services.

Do construction companies require audited financial statements?

Not automatically. The required level of financial statement service depends on the company’s circumstances and the needs of lenders, sureties, owners or other users.

Can you help us understand whether our jobs are profitable?

We can review the accounting structure and help improve how project revenue and costs are recorded. The usefulness of job profitability reporting depends on timely and complete information from estimating, payroll, purchasing and project management records.

Talk to an Edmonton Construction Accountant

If your construction or trades business needs stronger bookkeeping, clearer financial reporting or more coordinated year end and tax services, contact Seniuk and Marcato to discuss your accounting needs.

Contact Us

780 482 3431