Construction Accounting Services for Builders, Management Companies and General Contractors
OHI is a sixteen-year-old real estate services company working with 75+ commercial and residential real estate developers including construction firms, funds and property management companies across USA. OHI team members have a good understanding of construction accounting and project accounting concepts such as job-codes, cost-codes, and milestone based billing, draw contracts, change orders, holdbacks etc. OHI construction/project accountants are well versed with progressive invoicing /progress billing concepts based on various methods such as Percentage of Work Completion method and milestone based billing method. Our services are used by 300+ businesses in California, New York, Texas, Florida, Colorado, Kansas and Washington among others.
40-60% cost savings compared to in-house hired staff
Staff with 4+ years of relevant construction accounting experience
300+ Clientsin in USA (75+ construction and real estate firms)
Our Services
Vendor Contract Management
- Updating of contractor file with all relevant documents i.e. vendor insurance, legal record verification reports, taxation status etc.
- Entry of purchase orders into accounting systems
- Process invoices against POs as per pre specified tolerances, escalate unapproved/over budget invoices and back order processing
- Maintenance of vendor contract report as compared to completion of contract for mathematical accuracy
- Invoice coding and obtain approval from project manager
- Filing of lien release and other documents
Accounts Payable
Invoicing
- Capturing of contracts (such as GC, FW) into the accounting system
- Contract billing based on draw calculations sent by project managers
- Two way (PO and invoice) or three way (PO, invoice and PL) processing of invoices in software with proper specifications of job codes, cost codes, distribution accounts and retainage/holdback calculations
- Entry of commitment invoices into the accounting package
- Tracking of holdbacks and billing holdbacks to customers
Disbursement Processing
- Capturing of supplier (commitment contracts) into systems
- Purchase order management- entry, tracking and closing of POs
- Processing of invoices with complex inter divisional and inter company allocations
- Disbursements – Prepare EFT payments to suppliers after reconciliation with vendor statement and relevant approvals, Prepare checks taking into account check-run mechanics and payment terms
Accounts Receivable
- Progressive Invoicing/Progress billing based on different methods
- Customer invoicing based on contracts and purchase orders
- Customer payments and tracking of holdbacks and billing holdbacks to customers
Bookkeeping & Reconciliations
- Posting of journal entries at month end i.e. accrual & prepaid related entries
- Customers & vendor adjustment entries i.e. debit & credit notes settlement
- Reminders to customers for the overdue invoices
- Inter-company accounts reconciliation
- Bank reconciliation
- Retainage/holdback reconciliations
Reporting & Auditing
- Customized management reporting at job, project and company level
- Reports generated by integrating data from different sources
- Aging reports and financial statements at different levels
- Tracking equipment’s costs and depreciation amounts
Other Accounting Services
- Fixed asset management-tracking equipments costs and depreciation amounts
- Detailed job cost accounting and project profitability analysis
Interested In Knowing More
Watch it in Action
Software Expertise
Pricing
The indicative standard charges for Accounts Payable Specialist and Senior Accountant roles are listed below. Custom packages of 25, 50 and 80 hours per month are available.
Staff Profiles
Accounts Payable Specialist
Accounts Payable Specialist can perform activities such as 2 Way/3 Way matching of invoices with POs and GRs/Packing Slips, entry of invoices and utilities, coding of expenses, entering checks for further approval, tracking payables, vendor reconciliations and other miscellaneous accounts payable activities.
Construction Accountant
Construction Accountant can provide the following accounting services- General ledger accounting, payroll, monthly closing of books, detailed monthly reporting. They have strong balance sheet knowledge including assets, liabilities, income statement, cash flow statement and common financial ratios.
Our Blog
Construction Industry Best Practices in Internal Controls
Construction industry has a high transaction rate and the transaction amounts are pretty high as well. So it is safe to assume that frauds in construction accounting can lead to big losses. While these losses are not unheard of, it […]
- January 22, 2019
- admin@ohi
Bring the Odds at your End, Automate Construction Accounting Today!
The world has suddenly turned fancy and the universe of construction business is shining with activity. With several new players making an entry into the market, the competition no wonder has become pretty high. As such, the oldies in the […]
- March 31, 2015
- admin@ohi
The Basics of Construction Accounting
Accounting procedures and practices differ according to the type of business and practices adopted by organizations across sectors. In the construction industry, firms and contractors face unique challenges when it comes to accounting, as accounting for the construction sector is […]
- January 11, 2022
- admin@ohi
The 8 Most Common Small Business Accounting Mistakes
Small business accounting is an organized process which helps in keeping track of the financial activities of a company. Bookkeeping, on the other hand, is a systematic process of keeping a record of every single company transaction. Both the processes […]
- April 23, 2020
- admin@ohi
Contact Us
FAQ
In various aspects construction accounting is different as compared to accounting for other businesses. In general, there are 2 main ways to maintain construction accounts.
Percentage of Project Completion – In this way accountant has to update books on the basis of stages of project i.e. Income/ Expense will be accounted for once a pre-decided stage of project will be completed. The revenue recognition based on achievement of a pre-decided milestone is also called as progressive billing/invoicing
Another way is Project Based – in this way an accountant consider every project as separate entity. Accountant has to start the whole procedure at the beginning of each new project.
We have good understanding of construction accounting concepts/terms like job-codes, cost-codes, change orders, draw sheets, retainage/holdback, commitment invoices, construction contracts and general construction expense types. We can process accounts payable in both the ways: Two Way Match (PO with Invoice) and Three Way Match (PO, Invoice and Packing Slip/Goods Receipts) processes. Our accountants have good expertise in processing construction company invoices with complexities such as divisional accounting, multi location allocations, multi-project allocations, draw order invoices, commitment invoice, retainage/holdback reconciliation among others. We also have expertise in document filing, accounts receivable processing, general ledger maintenance, month-end closing including expense accruals, bank and loan reconciliations, and financial statement preparations. Our expertise in construction accounting across US and Canada enables us to handle customized services that you may require related to accounting.
We have a high level of expertise in Timberline and QuickBooks in Construction Accounting. In QuickBooks, we have a high degree of familiarity and understanding of concepts such as Classes, Jobs and associated reports. In Timberline, our accountants are familiar with the different reports, search tools, header and distribution windows, divisional accounting among others. As we handle the accounting work for many small construction companies, our expertise in this area has few parallels in the industry.
We focus on providing Construction Accounting Services with utmost accuracy and timeliness. We are able to process bookkeeping, financial closing, payroll and provide audit support activities. However, we do not perform audits and annual compilations or provide opinions on your financial statements. We can assist and coordinate these functions with your current CPA to ensure that they have the necessary information to prepare these for you.
Absolutely Not. You will actually have more control since you’ll have dedicated accountant to whom you can communicate through email, Skype, phone calls and more. Accountant will revert and work immediately to deliver accurate and up-to-date financial output. You’ll require minimum supervision and attention for bookkeeping quality control instead you can invest more time in business increase opportunities.
Your software needs are dependent upon the accounting needs of your business. It depends on volume & type of projects, annual revenue, number of suppliers & subcontractors and several other factors you want to manage through it. Our team is capable of handling variety of construction accounting software ranging from a complete construction accounting package like Timberline to a small business QuickBooks construction accounting packages.