How this usually works
A solid bookkeeping for construction process starts with a short review of structure, software and jobs in progress. The goal is to make sure every cost lands on the right job and that reporting matches how you bill and build.
Work typically falls into three layers:
1) Immediate triage. Stabilise bank feeds, fix coding, clear unreconciled transactions, and bring BAS, STP and super up to date. Capture missing subcontractor details needed for TPAR.
2) Process design. Configure projects/tracking for each job in Xero or QuickBooks Online, standardise items for labour, materials and plant hire, connect field tools (e.g. Simpro, Buildertrend, AroFlo, Fergus or Procore), and implement receipt capture for fuel and materials. Set clear rules for progress claims, variations and retentions.
3) Ongoing review. Reconcile weekly, run job margin and WIP reports, prepare BAS on time, and keep a simple cash flow forecast that reflects upcoming claims and retention releases.
Australian context to keep in view
- Track job-by-job costs for labour, materials, plant and subcontractors; review WIP so profit is not overstated or understated.
- Issue progress claims with the correct GST; record retentions as a liability and release them when due.
- Collect contractor ABNs and lodge the TPAR for building and construction by 28 August each year.
- Align payroll with the applicable award, including overtime, allowances and RDOs. Ensure STP and super are on time and accurate.
- Use weekly bank and fuel card reconciliations so job cost and cash flow reports are current.
- Check for state-based long service schemes for construction where relevant and keep registrations current.
- Regular, construction-aware bookkeeping reduces end-of-year cleanup and supports accurate BAS and tax outcomes.
What to compare before you commit
Scope
Confirm the scope covers setup, weekly reconciliations, WIP, progress claims, retentions, BAS prep, payroll support and the TPAR.
Software fit
Ask for experience with your stack: Xero or QBO plus site/job tools such as Simpro, Buildertrend, AroFlo, Fergus or Procore, and receipt capture like Dext or Hubdoc.
Turnaround and communication
Clarify weekly cut-offs, how urgent claims are escalated, and who you speak to during peak periods and month-end.
Commercial fit
Compare pricing method, reporting pack (job margin, WIP, cash flow), and whether you need compliance-only or broader advisory support.
Best next steps
Write down the exact outcome you need: up-to-date books, a lodged BAS, clean payroll, clear job margins, or a migration to Xero or QuickBooks Online with projects enabled.
Gather a recent job list, aged receivables/payables, your contracts with retention terms, current software logins and any payroll or ATO deadlines. This helps your provider scope quickly and quote accurately.
Use these related pages to move into the right subtopic: construction overview, construction payroll, and construction tax. You can also browse our Help Centre for how‑to articles or go straight to the form.
Frequently asked questions
Why does construction bookkeeping need a specialist?
Construction has moving parts that general bookkeeping can miss: job costing, progress claims, variations, WIP and retentions. There are also industry obligations like TPAR for contractors and award-driven payroll. A specialist keeps costs attached to the right jobs, bills milestones correctly, and maintains compliance without slowing site work.
How should job costing be set up in Xero or QuickBooks Online?
Create a project for each job, use tracking categories where helpful (e.g. cost centres or crews), and standardise items for labour, materials and plant. Pull timesheets from a field app, post supplier bills to the right project, and reconcile weekly so WIP and margins are current. Keep variations separate to protect visibility and billing.
How are progress claims, variations and retentions handled?
Progress claims invoice a percentage or milestone of the contract; GST is applied according to the claim. Variations are billed as separate line items or invoices so they are not lost. Retentions are tracked as a liability and only recognised as income when released. WIP reconciles completed work vs. billed amounts to keep revenue accurate.
What is the TPAR and who must lodge it?
The Taxable Payments Annual Report applies to businesses in building and construction that pay contractors. You must report contractor details (name, ABN, amounts, GST) to the ATO by 28 August each year. Accurate records and ABN collection during onboarding make TPAR simple.
Which payroll issues are common in construction?
Awards, allowances, overtime, RDOs, travel and site allowances, STP reporting and superannuation are common pressure points. Some states have portable long service schemes for construction; confirm your obligations and integrate timesheets so payroll stays accurate.
Can you help with BAS and tax for construction?
Yes. Consistent bookkeeping supports on‑time BAS and accurate tax for construction. The same job data used for WIP and claims underpins reliable BAS, PAYG and year‑end reporting.