WIP & Retainage in Construction Bookkeeping: Roll-Forward & Tie-Outs
Get a Construction WIP & Retainage QuoteWork-in-progress (WIP) and retainage drive job profitability and cash. We run a construction bookkeeping process that rolls WIP forward monthly, aligns percent-complete to job costs, and ties retainage receivable/payable to actual invoices and subs. In QuickBooks or Xero, we standardize items/cost codes, reconcile every bank/credit/loan account to statements, and produce a CPA-reviewed reporting pack with a period-lock recommendation—so your WIP schedule matches your job P&L and GL, not a separate spreadsheet.
The WIP Method (RBO Standard)
Establish
cost-to-date and budget at job/code level
Percent-complete
revenue recognition logic (as applicable)
Roll-forward columns
Beg WIP, + Costs, +/- Adj, = End WIP
Owner retainage
track receivable and releases
Sub retainage
pay apps and releases, mirrored in AP
Reports We Deliver
WIP schedule with cost-to-complete and margin at complete- Retainage receivable/payable lists with release history
- Job P&L by cost code that ties to the GL
CPA-reviewed and tailored for the construction industry
Frequently Asked Questions
Not always. Many contractors use completed-contract. We’ll align WIP reporting to your revenue method and lender/bonding requirements.
Separate AR/AP retainage ledgers; releases post against the right job/code and tie to bank statements.
- Tighten progress billing & AR so WIP and invoices match.
- If job costs drift, fix job costing first.
- Prefer the full service? Explore Construction Bookkeeping.
- Cross: “Behind on history? QuickBooks Cleanup gets you back to zero.