Construction Accounting
Tax and accounting built for contractors and construction businesses across Garden City, Long Island, and beyond. From job costing to certified payroll, we handle the numbers so you can focus on the build.
Construction accounting is its own discipline.
Few industries have accounting as specialized as construction. Revenue is earned across long projects, costs are tied to individual jobs, customers withhold retainage, and payroll often carries union and prevailing-wage requirements. Generic bookkeeping simply does not capture it. JRH & Associates works with contractors and construction businesses throughout Long Island, New York City, and the tri-state area, and we know how to build the financial picture your business actually runs on.
Reviewed by James R. Hurley, CPA · June 2026
Job costing and WIP reporting
Job costing is the backbone of construction accounting. By tracking labor, materials, equipment, and overhead against each project, you can see which jobs make money, bid the next one with confidence, and produce accurate work-in-progress reports. A clean WIP schedule also matters to sureties and lenders. We set up job costing inside your accounting system and keep your WIP reporting tight so your numbers tell the truth about every project.
Percentage-of-completion vs. completed-contract
How you recognize revenue has a direct effect on your taxes. The percentage-of-completion method books revenue and profit as a job progresses, while the completed-contract method defers it until the work is done. The right choice depends on contract length, your revenue size, and the rules that govern which contractors may use which method. We evaluate your situation and apply the approach that keeps you compliant while managing the timing of your tax liability.
Retainage and equipment depreciation
Retainage withheld until a job is complete creates a timing gap between the cash you have collected and the income you are taxed on, and it has to be tracked carefully on both receivables and payables. On the equipment side, Section 179 expensing and bonus depreciation can let you write off qualifying equipment and vehicles quickly, sometimes entirely in the year of purchase. We coordinate the timing of equipment purchases with your overall tax plan to maximize the benefit.
Union and certified payroll
Prevailing-wage and public works projects require certified payroll reporting, and union work layers fringe benefits, dues, and added reporting onto ordinary payroll. The compliance demands are heavy and the penalties for mistakes are steep. We help structure payroll so prevailing wage rates, fringes, and certified payroll filings are handled correctly right alongside your standard payroll tax returns.
Sales and use tax on materials
Sales and use tax in construction is genuinely tricky. Whether tax applies can depend on the type of work, the contract, and whether the project is a capital improvement or a repair, and use tax can come due on materials when sales tax was not collected at purchase. We help you apply the rules correctly so you neither overpay nor expose yourself in an audit. Explore our full range of services or see how we work with real estate clients, the trades and home services, manufacturers, and other industries.
Across the trades and the field.
General Contractors
Builders managing multiple subcontractors, long contracts, and complex job-cost tracking.
Subcontractors & Trades
Electrical, plumbing, HVAC, masonry, and other trades balancing equipment, payroll, and materials.
Home Builders & Remodelers
Residential builders and renovation firms navigating capital improvement and sales tax rules.
Heavy & Public Works
Contractors on prevailing-wage and public projects with certified and union payroll requirements.
"In construction, the accounting method you choose can be worth more than the markup on a job. Job costing, the right revenue recognition method, and smart timing on equipment purchases are not back-office details. They decide how much tax you pay and how clearly you can see which work is actually making you money."
James R. Hurley, CPA Founder & President, JRH & Associates Common construction tax questions.
Job costing tracks the labor, materials, equipment, and overhead tied to each individual project rather than lumping everything together. It tells you which jobs are actually profitable, supports accurate bids, and is the foundation for proper revenue recognition and WIP reporting. We help contractors set up job costing inside their accounting system so every project shows its true margin.
Under the percentage-of-completion method, you recognize revenue and profit as a job progresses, which usually gives a more accurate picture of long-term contracts. Under the completed-contract method, you defer recognition until the job is finished. The right choice depends on your contract length, revenue size, and tax goals, and tax law limits which method certain contractors may use. We evaluate your situation and apply the method that is both compliant and most advantageous.
Retainage is the portion of a contract a customer withholds until the work is complete. How and when it is recognized as income or expense depends on your accounting method, and it can create a meaningful timing difference between the cash you have collected and the income you are taxed on. We track retainage carefully on both the receivable and payable side so your books and your tax position stay accurate.
Often, yes. Section 179 lets you expense qualifying equipment and vehicles up to annual limits in the year you place them in service, and bonus depreciation can apply on top of or instead of it. For contractors making large equipment investments, this can substantially reduce taxable income. We help you time purchases and choose between Section 179 and bonus depreciation to get the best result across the current and future years.
Public and prevailing-wage projects come with certified payroll requirements, and union work adds fringe benefits, dues, and reporting obligations on top of standard payroll. The compliance burden is real and the penalties for getting it wrong are serious. We help set up payroll so prevailing wage rates, fringes, and certified payroll reporting are handled accurately alongside your normal payroll tax filings.
Build on a solid financial foundation.
Schedule a free consultation and we will review your job costing, your accounting method, and the tax strategies that fit your construction business.