Construction bookkeeping for builders and trades
Construction bookkeeping is not the same as standard small business bookkeeping. Jobs run across months, money moves through progress claims and retention, and a large share of your spend goes to subcontractors who each need to be paid, verified and reported to the ATO. Done properly, your job costs, GST and cash flow line up project by project instead of becoming a mess you untangle at year end.
Need the tax and structure side instead? Construction Accountants →
Why construction bookkeeping is different
A builder or trade business runs money through stages a normal ledger never sees. A good set of construction books tracks all of it so every job can be read on its own.
Job costing
Every cost is coded to the right project and cost centre, not just the right account, so you can see the margin on each job.
Progress claims and payments
Revenue is claimed as work is certified through progress claims, not simply when an invoice is raised.
Retention
Money withheld until practical completion and the defects period is tracked as a receivable or payable, not lost from view.
Work in progress
Unbilled work sitting between claims is carried on the balance sheet so profit is not overstated or understated.
Subcontractors
Subbie payments run through RCTIs and payment schedules, and each worker raises the contractor versus employee question.
TPAR and GST
Payments to contractors are reported each year in the Taxable Payments Annual Report, and GST applies to progress payments and retentions.
What a bookkeeper for builders does
Day to day, a construction bookkeeper codes supplier and subcontractor invoices to the correct job, runs the subcontractor payment cycle, reconciles job costs against the estimate, and keeps payroll and superannuation current. Most also hold BAS agent registration, which lets them prepare and lodge your activity statements, manage GST and PAYG, and handle the Taxable Payments Annual Report. That registration is what separates a bookkeeper who can legally lodge for a fee from one who cannot.
The compliance a construction business cannot skip
Three obligations catch out building and trade businesses more than any others. TPAR, the Taxable Payments Annual Report, is due by 28 August each year and reports what you paid contractors. GST on progress payments and retentions needs to be recognised at the right time. And Security of Payment legislation, which differs by state, sets the timeframes for payment claims and schedules and, in some states, requires retention or project money to be held in trust. A construction bookkeeper keeps records that stand up to all three.
Tools for construction bookkeeping
Free tools that handle the parts of construction bookkeeping that trip businesses up: progress claims, retention, subcontractor payments and contractor reporting.
Pulsify · AP automation for construction
However you run the books, the subcontractor invoices still have to be captured, coded to the right job and approved. Pulsify automates that accounts payable workflow for construction: invoice capture, job cost coding, approvals, and Xero or MYOB sync, so your BAS agent spends time on the work that needs judgement, not data entry.
Find a bookkeeper near you
Browse registered BAS agents by city on our directory, then confirm construction experience before you engage one.
Frequently asked questions
What does a construction bookkeeper do?
A construction bookkeeper codes costs to each job, runs the subcontractor payment cycle, reconciles job costs against the estimate, keeps payroll and super current, and, if they hold BAS agent registration, prepares and lodges your BAS and Taxable Payments Annual Report.
How is construction bookkeeping different from normal bookkeeping?
Construction books track job costing, progress claims, retention and work in progress, and report subcontractor payments through TPAR. A standard ledger does none of that, which is why builders need bookkeeping set up for construction.
What is TPAR and does my building business need to lodge it?
The Taxable Payments Annual Report reports the payments you made to contractors during the year. Businesses in building and construction that pay contractors generally must lodge it by 28 August each year.
How is retention handled in construction bookkeeping?
Retention is money withheld from a payment until practical completion and the defects period. It is tracked as a receivable or payable rather than income or expense, and in some states it must be held in a trust account under Security of Payment law.
Do I need a bookkeeper or an accountant for my construction business?
Most builders use both. A bookkeeper (BAS agent) runs the day to day and lodges your BAS. An accountant (tax agent) handles structure, tax planning and the annual return. See our guide to construction accountants for the tax side.
Agent counts are drawn from the Tax Practitioners Board register, published under CC BY 4.0. Registration does not by itself indicate construction specialisation, so confirm relevant experience before engaging a practitioner. This page is general information, not tax or legal advice.