Outsourced Finance for Construction Companies: Job Costing & Cash Flow

Construction businesses have unique finance challenges: job-by-job profitability, progress claims, retention, subcontractor management, and seasonal cash flow. Generic bookkeeping doesn’t cut it.

Why Construction Finance Is Different

  • Job costing complexity – Every project has different margins. You need to track labour, materials, subcontractors, and overheads by job.
  • Progress claims – Revenue recognition tied to milestones, not invoicing.
  • Retention tracking – 5-10% held back creates receivables complexity.
  • Subcontractor compliance – RCTI, payment summaries, TPAR reporting.
  • Cash flow volatility – Large outflows before progress payments hit.

What Construction Finance Should Include

  • Job-by-job P&L reporting
  • WIP (work in progress) tracking
  • Progress claim reconciliation
  • Retention schedules
  • Cash flow forecasting by project
  • Subcontractor payment management

Pricing for Construction Businesses

Construction companies typically need the mid-tier of outsourced finance services due to job costing requirements: $3,500 – $6,000/month including weekly job reporting and cash flow management.

Book a construction finance review to see how your current systems compare.

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