Construction Job Costing: Build a COA That Ties to the GL
Get Construction Job-Costing SetupIf your job P&L doesn’t match the general ledger, pricing and pay apps become guesswork. We design a construction-specific chart of accounts, items, and cost codes so labor, materials, subs, equipment, and overhead flow cleanly into job reports and the GL. In QuickBooks or Xero, we standardize vendors, create rules, and document recurring entries; at month-end, a CPA reviews reconciliations and variance notes so each job’s margin is real—not a spreadsheet fiction.
The 5-Layer Job Costing Model
COA Structure
Direct costs (Labor, Materials, Subs, Equipment), Indirect/Overhead, and G&A—clearly separated.
Items/Cost Codes
Map common work (e.g., framing, electrical, concrete) to items; align to COA.
Dimensions
Classes/Locations for division/crew/site.
Source Capture
Time (QuickBooks Time), bills, POs, receipts—clean vendor naming.
Reporting
Job P&L ties to GL; WIP pulls from the same sources.
What We Implement
Standard COA for contractors (templates for GC vs specialty subs)- Items & Items & Cost Codes (materials, labor, subs, equipment, permits)
- Rules & Vendor Normalization (Home Depot → Materials; XYZ Electric → Subs)
- Job Costing SOP (time import, bill coding, change orders)
- QA Loop: JV review, tie-outs, variance notes, CPA review, period-lock guidance
Reports You’ll Trust After Setup
- Job P&L (by cost code) that equals GL totals
- Cost-to-Complete snapshots from WIP schedule
- Division or crew profitability via classes/locations
Start your first month free - CPA-reviewed and tailored for the construction industry
Frequently Asked Questions
Yes—classes give roll-ups, but items/codes map detail lines to the right GL accounts and job buckets.
Most contractors go live in 1–2 weeks; larger GCs with many codes may take longer.
Usually. We reclass key vendors, rebuild rules, and backfill items where feasible—then stabilize going forward.
We align item names to SOV language so AR and job costing stay in sync.
- If WIP and retainage keep drifting, see how we roll forward WIP the right way.
- Ready to formalize progress billing and collections?
- Need vendor approvals and sub-AP + 1099s?
- Prefer a full service? Start at Construction Bookkeeping.
- Cross-cluster: “Behind on reconciliations? Start with a QuickBooks Cleanup.