406 Consulting Group
Construction and general contractor accounting — WIP schedules, AIA billing, subcontractor compliance
Industry

Built for the Way Contractors Work

You're managing project managers, subcontractors, draw schedules, and change orders — all while trying to understand if you're actually making money. Most accountants understand debits and credits. We understand WIP schedules, AIA billing, and what happens when a subcontractor walks off a job in week eight.

Why General Contractors need specialized accounting

Work-in-Progress accounting is one of the most misunderstood areas in construction finance. Overstating or understating WIP distorts your financial picture and can trigger covenant violations with lenders. We build WIP schedules correctly and explain what they mean. Most accountants understand debits and credits. We understand WIP schedules, AIA billing, and what happens when a subcontractor walks off a job in week eight.

Our team brings deep project management experience from the oil and gas industry — one of the most operationally complex environments in the world. Scope control, cost tracking, schedule pressure, and stakeholder reporting translate directly to construction. We don't just read your financials; we understand the operations behind them.

Common pain points we solve

WIP accounting: most bookkeepers don't understand Work-in-Progress schedules. We do — and we build them correctly from day one so your financials actually reflect where each project stands.
Cash flow gaps between draws: you're waiting on owner draws while payroll, materials, and subs are due now. We build 13-week cash flow forecasts so you can act before the crisis hits.
AIA billing & draw schedules: slow or inaccurate billing directly delays your draws. We set up AIA G702/G703 processes so you invoice correctly and get paid faster.
Subcontractor compliance & COIs: expired certificates of insurance, missing W-9s, lien waiver tracking, 1099 compliance — we build the systems that keep you protected.
Job costing & profitability: winning bids means nothing if you don't know which jobs made money. We implement job costing that shows you exactly where margin lives.
Change order financial impact: change orders are revenue — but only if they're tracked, billed, and collected. We make sure every approved change order flows correctly through your books.
Bonding & lender readiness: surety bonds and construction loans require clean, credible financials. We prepare your books to pass underwriting.

What we do for General Contractors

  • Controller Services: monthly close, WIP reporting, job cost tracking
  • CFO Services: cash flow forecasting, bonding strategy, growth planning
  • Bookkeeping: construction-specific chart of accounts, subcontractor tracking
  • BuilderTrend implementation: full setup, data migration, QuickBooks integration
  • Job costing setup: profitability by project, phase, and cost code
  • Bonding readiness review: financials prepared for surety underwriting
  • Tax planning: entity structure, depreciation strategy, owner pay
  • Tax preparation: 1065, 1120-S, 1120 — complex entity returns

The metrics we track

  • WIP schedule updated monthly — over/under-billed position on every active project
  • Cash flow visible 13 weeks out — draw timing, sub payments, payroll mapped
  • Job costing by phase & cost code — know which jobs made money before the next bid
  • Subcontractor compliance current — COIs, W-9s, lien waivers, 1099s tracked
  • Financials bank & bond ready — presented the way lenders and sureties want to see them
  • Owner has real-time visibility — monthly dashboard with revenue, margin, cash position

Frequently asked questions

Related services

BookkeepingPayrollControllerCFOAdvisoryTax Preparation

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