Construction accounting software built around the job
Job costing by cost code, cost-to-cost percentage-of-completion, WIP schedules, AIA G702/G703 progress billing, and retainage - in one governed AI finance system instead of a stack of spreadsheets.
Why contractors outgrow generic accounting
A contractor’s books don’t follow a calendar - they follow jobs. Revenue is earned by percent complete, cash arrives on pay applications minus retainage, and a labor dollar only means something when it lands on the right cost code on the right job. Generic small-business accounting has no job dimension, no WIP schedule, and no idea what retainage is.
- Job costing: labor, materials, subcontracts, and equipment roll up by job and cost code, not just by GL account.
- Percentage-of-completion: revenue is earned as costs are incurred, so a slow-billing month still shows the margin you earned.
- WIP schedule: over/under billing must be computed every close or job margins look wrong all year.
- Retainage: 5–10% of every billing is withheld until completion, so invoiced amounts never equal collectible cash.
- Progress billing: AIA-style pay applications bill a schedule of values by percent complete, net of retainage.
What the construction module actually does
| Capability | What it computes | Where it lives |
|---|---|---|
| Job costing | Actuals tagged to job + cost code vs revised budget and committed cost | Job-cost report |
| Percentage-of-completion | Cost-to-cost % complete = cost-to-date ÷ estimate at completion | Revenue recognition run |
| WIP schedule | Earned revenue, under-billing (contract asset), over-billing (contract liability) | WIP schedule report |
| AIA progress billing | G702/G703 draw with per-line retainage and a net-due invoice | Progress billings |
| Retainage | Withheld amount tracked in a dedicated Retainage Receivable account | Retainage report |
| Change orders | Approved COs adjust contract value and revised budget by cost code | Change orders |
| Committed cost | Open PO/subcontract exposure = amount − invoiced to date | Committed-cost report |
A worked example
Cost-to-cost percent complete
cost_to_date ÷ estimate_at_completion = $270,000 ÷ $450,000 = 60%
Illustrative. Estimate at completion is cost-to-date plus cost-to-complete (revised budget minus cost-to-date, or a manual override), the cost-to-cost input method under ASC 606.
Getting started
From spreadsheets to job-level books
- 1
Create jobs and cost codes
Set up jobs with a contract value and retainage percent, then apply a reusable cost-code (WBS) template so every crew codes to the same structure.
- 2
Budget by cost code
Enter original budgets per cost code; approved change orders roll into the revised budget automatically.
- 3
Capture costs to the job
Bills, expenses, and payroll tag to a job and cost code, mirroring the GL into the job-cost sub-ledger.
- 4
Bill and recognize
Run an AIA progress billing net of retainage, then a revenue-recognition run to post the WIP schedule and period revenue.
Frequently asked questions
What is construction accounting software?
Construction accounting software tracks finances by job rather than only by GL account. It captures labor, materials, subcontracts, and equipment against each job and cost code, recognizes revenue by percentage-of-completion, produces a WIP schedule of over/under billing, and handles progress billing with retainage. Fintra does all of this on one job-dimensional ledger.
Does Fintra handle retainage?
Yes. You set a retainage percent per job (default 10%). Each AIA progress billing withholds that percent, so the customer invoice is for the net due while the withheld amount posts to a dedicated Retainage Receivable account. The retainage report totals what is held per job, so AR aging and cash forecasts reflect what is actually collectible today.
Which revenue recognition method does Fintra use?
Cost-to-cost percentage-of-completion - the ASC 606 over-time input method. Percent complete is cost-to-date divided by estimate at completion, earned revenue is percent complete times contract value, and period revenue is earned-to-date minus previously recognized. The completed-contract method is not implemented.
Can Fintra replace my job-costing spreadsheets?
Yes. Because every bill, expense, and payroll line is tagged to a job and cost code, the job-cost report shows original budget, approved change orders, revised budget, committed cost, actual cost-to-date, estimate at completion, and projected over/under - without exporting the GL and re-tagging rows in Excel.
Stay in the loop
One practical finance briefing a week - new guides, checklists, and benchmarks.
Put your jobs on a real ledger
Start free, no card required. Import your open jobs and produce a WIP schedule in your first month-end close.
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