How this usually works
A good construction accountant starts with a short diagnostic: structure, software, reporting cadence, open projects, claims cycle, payroll settings, contractor usage and any deadlines (BAS, TPAR, tax or licensing). They’ll look at your chart of accounts, job costing method, WIP process, AP approvals, and field-to-office data flow.
From there, the work typically runs in three layers:
- Immediate triage: stabilise urgent issues (late BAS, cash crunch, payroll errors, overdue claims, messy supplier coding).
- Process design: implement clean job costing, WIP schedules, progress claim mapping, purchase ordering, approvals and document control.
- Ongoing review: monthly WIP and margin checks, cash forecasts, variance analysis and compliance lodgements that stay on time.
Australian context to keep in view
- TPAR: If you pay contractors for building and construction services, a Taxable Payments Annual Report is due by 28 August.
- GST on progress claims and retentions: claims are generally taxable; retentions are recognised separately until released.
- Payroll: Award interpretation, allowances, Portable Long Service Leave (e.g., CoINVEST VIC, QLeave QLD, Long Service Corporation NSW), STP Phase 2, and Super Guarantee (11.5% from 1 July 2024).
- WIP and revenue recognition: manage over/under billing under AASB 15 to avoid distorted profits.
- Licensing and reporting: some states require financial information (e.g., QBCC ratios in QLD).
Typical services from a construction accountant
- Construction bookkeeping and job costing setup — integrate field tools and accounting software (learn more).
- BAS and GST management for progress claims, variations and retentions (BAS agent services).
- Payroll configuration and processing for awards, allowances and STP Phase 2 (construction payroll or payroll services).
- Tax planning, asset and vehicle deductions, and project-based profitability (construction tax or tax accountant).
- TPAR processes, contractor onboarding and ABN/withholding checks.
- Cash flow forecasting, WIP and margin reviews, and board-ready reporting.
- Software selection and integration across Xero/MYOB/QBO with simPRO, AroFlo, Procore, Buildertrend and similar tools.
What to compare before you commit
Scope
Confirm the scope covers job costing, WIP, claims/retentions handling, BAS/TPAR, payroll setup and monthly reporting—not just compliance.
Software fit
Ask how they map timesheets, POs, claims and supplier invoices from field systems into your ledger. Look for Xero/MYOB/QBO proficiency plus real workflow knowledge.
Turnaround and communication
Agree how often you receive WIP and variance reports, who signs off claims, and how urgent site issues are escalated during peak periods.
Commercial fit
Compare fixed-fee vs hourly, meeting rhythm, KPI dashboards and whether you want compliance-only or advisory with cash flow and margin coaching.
Best next steps
Define the outcome first: tighter cash flow, accurate job margins, a clean BAS position, payroll confidence, or a software overhaul. Then shortlist providers who can explain, in plain language, how they’ll deliver that outcome and how reporting will look each month.
Use the related pages below to dive deeper into construction bookkeeping, payroll and tax, or head straight to the form to describe your situation and timing.
Frequently asked questions
What does a construction accountant do?
A construction accountant sets up and manages job costing, WIP and revenue recognition, tracks progress claims and retentions, prepares BAS and TPAR, aligns payroll to awards and STP Phase 2, and produces cash flow, margin and project reporting for builders and contractors.
Do I need to lodge a TPAR for my construction business?
If you pay contractors for building and construction services, you likely need to lodge a Taxable Payments Annual Report (TPAR) with the ATO by 28 August. Good processes capture contractor details and payments during the year so the report is fast and accurate.
How are WIP, progress claims and retentions handled?
WIP tracks the value of work performed but not yet invoiced or collected. Progress claims and retentions are mapped to contract assets/liabilities and recognised per AASB 15. This prevents distorted profits and clarifies cash expectations across jobs.
Which software stacks work well in construction?
Common stacks pair Xero, MYOB or QuickBooks Online with simPRO, AroFlo, Procore or Buildertrend. The right stack depends on job costing depth, approvals, timesheets and how site data flows to finance.
What payroll issues are common in construction?
Awards and allowances, Portable Long Service Leave in some states, STP Phase 2, and Super Guarantee (11.5% from 1 July 2024). Setup must reflect the exact roles, sites and allowances used.
Why does construction accounting need a specialist lens?
Construction has unique revenue timing, WIP management, claims/retentions, subcontractor reporting (TPAR) and award-driven payroll. Industry fluency speeds up decisions and reduces errors.
Is industry experience more important than software knowledge?
Both matter. Industry context improves commercial judgement while software knowledge drives clean workflows and reliable reporting.
Should an industry specialist also handle bookkeeping or payroll?
Often yes. Many businesses want one coordinated provider or a lead accountant guiding bookkeeping and payroll so job costs and compliance stay aligned.
What should I compare before choosing?
Check scope, software workflow, reporting cadence, WIP capability, turnaround, communication style and pricing method. Ask for examples of construction dashboards and WIP reports.