Percentage-of-completion accounting, built in
Job costing by cost code, WIP over/underbilling computed every close, and progress billing tied to a real schedule of values - in one AI accounting system, not a spreadsheet WIP schedule bolted onto QuickBooks.
Why contractor accounting needs more than a generic GL
Construction revenue recognition follows percent complete, not invoices sent. A contractor that bills ahead of costs incurred is sitting on a liability it doesn’t know about; one that bills behind is quietly financing the owner. Generic accounting software has no cost-code dimension and no WIP logic to catch either case.
- Job costing: labor, materials, subs, and equipment must roll up by job and cost code to mean anything.
- Percent complete: revenue earned should track cost incurred against total estimated cost, not billing pace.
- Over/underbilling: the gap between billed and earned must be computed every close or margins mislead all year.
- Progress billing: pay applications need to bill against a schedule of values, carrying retainage and prior billings forward.
How Fintra maps to percentage-of-completion accounting
- AI accounting keeps a job- and cost-code-dimensional GL, so cost incurred is always known by job at any point in the month.
- WIP schedules compute percent complete, earned revenue, and over/underbilling automatically each close - not once a year at tax time.
- AIA-style progress billing bills percent complete against a schedule of values, carrying prior billings and retainage forward each period.
- Budgeting and forecasting compare estimate to actual per job and cost code, flagging jobs burning ahead of percent complete.
- Bill pay and 3-way match (PO vs receipt vs bill) keep subcontractor and material costs tied to the right job before they ever hit the GL.
A worked WIP over/underbilling example
Over/underbilling
Billed to date − earned revenue = $780,000 − $720,000 = $60,000 overbilled
Illustrative example: earned revenue is contract value × percent complete ($1,200,000 × 60% = $720,000), with percent complete computed as cost incurred ÷ estimated total cost.
Spreadsheet WIP vs Fintra
| Workflow | Spreadsheets + generic tools | Fintra |
|---|---|---|
| Job costing | Re-tag GL exports by job in Excel | Every transaction coded to job and cost code at entry |
| WIP schedule | Manual over/underbilling workbook, often annual | Computed from cost-to-date and billings every close |
| Progress billing | Pay application template rebuilt each period | Billed against a live schedule of values with retainage |
| Job cost variance | Discovered at project closeout | Estimate-vs-actual visible per cost code mid-job |
Getting started
From annual WIP reconciliation to monthly discipline
- 1
Load jobs and estimates
Import open jobs, cost codes, and estimated total costs.
- 2
Connect cost inputs
Payroll, sub invoices, and material purchases flow into job-coded books.
- 3
Close with WIP computed
Your first close produces a real WIP schedule with over/underbilling by job.
Frequently asked questions
Does Fintra compute WIP over/underbilling automatically?
Yes. Every month-end close computes percent complete per job (cost incurred ÷ estimated total cost), multiplies by contract value for earned revenue, and compares that to billings to date to surface over- or underbilling - a $780,000 billed vs $720,000 earned position shows as $60,000 overbilled, automatically.
How does percentage-of-completion accounting work in Fintra?
Fintra tracks cost incurred against estimated total cost per job to derive percent complete, then recognizes revenue as contract value times percent complete rather than as invoices are sent. That keeps recognized revenue tied to real progress instead of billing pace.
Can Fintra generate AIA-style progress billing pay applications?
Yes. Progress billing runs against a schedule of values: you bill percent complete per line, and Fintra carries previous billings, current billings, and retainage forward each period, reconciling billed amounts to earned revenue in the WIP schedule.
What is the best construction accounting software for job costing?
Look for software with a job- and cost-code dimension on every transaction, not a bolt-on job costing report run from GL exports. Fintra codes labor, materials, subs, and equipment to job and cost code at entry, so job margin and WIP are live throughout the job rather than reconstructed at closeout.
Stay in the loop
One practical finance briefing a week - new guides, checklists, and benchmarks.
Get a real WIP schedule every close, not once a year
Fintra is free to start, no card required. Load your open jobs and see over/underbilling in your first close.
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