Your Questions.
Our Strategies.
Critical Financial Insights for Ambitious Contractors.
Job Costing & WIP
(Work-In-Progress)
Stop guessing and start engineering your profit. Job Costing isn’t just about where your money went; it’s about knowing exactly which crews, materials, and projects are actually putting cash in your pocket. Combined with WIP (Work-In-Progress) Reporting, we strip away the "bank balance illusion" to show you your true earned revenue.
We identify profit leaks in real-time—before the project ends—so you can bid with confidence, secure your bonding, and scale with certainty.
Why is my bank balance high, but my P&L shows a loss?
This is often the "Customer Deposit Illusion." We use WIP reporting to separate your actual earned revenue from the cash sitting in your account that is already committed to future materials and subcontractors. We ensure you aren't spending next month's project money on today's overhead.
How do I know which of my crews or service lines are actually making money?
We implement granular job costing that tracks labor and materials by project. This reveals which jobs are high-margin "winners" and which are just busy work that eats your overhead. If one crew is consistently over-budget on framing, you’ll see it in the data before the job is over.
What is a WIP report, and why do I need it for my bonding agent?
​A Work-in-Progress (WIP) report tracks overbillings and underbillings across all active projects. Bonding agents and banks require this to prove you have the liquidity and management capacity to finish your open contracts. We ensure your QBO data matches your actual field progress for seamless bonding renewals.
Can Job Costing help me stop "underbidding" on future projects?
Absolutely. By looking at "Actual vs. Estimated" costs on completed jobs, we identify patterns where you might be losing money—such as underestimated material waste or "untracked" drive time. This data allows you to adjust your bidding formula to protect your 20% to 30% margins.
How do I handle "Change Orders" so they don't get lost in the books?
Many contractors lose thousands because change orders are done in the field but never billed in the office. We create a workflow where change orders are tracked as separate line items in your job costing. This ensures every extra hour of labor and every extra piece of lumber is billed and accounted for.
Why does my project management software (Procore, Buildertrend) not match my QuickBooks?
This is a common "data silo" issue. Your PM software tracks field activity, but your accounting tracks financial reality. We reconcile the two, ensuring that your Committed Costs (unpaid subcontracts and POs) are visible in your accounting so you don't overspend based on an incomplete financial picture.
Payroll & Labor Burden:
Uncovering Your True Crew Costs
Stop bidding based on wages. Start bidding based on burden. Most contractors think a $35/hr carpenter costs $35/hr. In reality, once you add MN payroll taxes, workers' comp, and non-billable time, that cost jumps to $55+. We calculate your Fully Burdened Labor Rate so your estimates reflect the true cost of doing business, protecting your margins from "hidden" payroll leaks.
I pay my lead carpenter $40/hr—isn't that my labor cost?
No. Your actual cost includes "Labor Burden"—payroll taxes, liability insurance, workers' comp, and benefits. We calculate your "Fully Burdened Rate" so you know exactly what to charge per hour to remain profitable.
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How do I track field hours without chasing paper timecards?
We integrate digital time-tracking (like QuickBooks Time) directly into your accounting. Your crew clocks into specific "Job Codes" from their phones, giving you real-time data on labor spend versus your original estimate.
Are my subcontractors truly "subs" or misclassified employees?
Minnesota is strict on the "Independent Contractor" test. We manage your sub documentation (COIs, W-9s, and contracts) to ensure you are compliant and protected from expensive back-tax audits.
How will the 2026 MN Paid Leave law affect my payroll?
This new law introduces mandatory premiums. We have already updated our clients' financial models to include these costs, ensuring your 2026 bids account for these new employer expenses before they hit your bank account.
Why is my Workers' Comp audit always so expensive?
Surprises during audits happen when payroll isn't "classed" correctly throughout the year. We assign the right class codes to every hour worked, so your premiums stay accurate and your year-end audit is a non-event.
How do I account for "Unbillable" time like drive time and shop maintenance?
We factor "Indirect Labor" into your overhead. By tracking non-billable hours, we adjust your burdened rate so that your active jobs are paying for the time your crew spends loading the truck or driving to the site.
Clean-up & Compliance:
From Chaos to Clarity
Stop looking in the rearview mirror. Start seeing the road ahead. Messy books are more than just a headache—they are a financial risk that can lead to overpaid taxes, denied loans, and MN state penalties. We specialize in Historical Reconstruction, turning years of unorganized data into an audit-ready foundation. We ensure your firm is compliant with 2026 MN labor laws today, so you can sleep soundly tonight.
My books haven’t been touched in over a year. Can you really fix this?
Yes. We perform a Deep Clean-up. We reconcile every bank and credit card account, fix miscategorized transactions, and ensure your Balance Sheet is accurate. We don't just "patch" the data; we rebuild it so your tax preparer has exactly what they need.
I’m worried about a sales tax audit. How do I know I’m charging correctly?
Construction sales tax in MN is tricky (Capital Improvement vs. Real Property). We review your invoices to ensure you are paying and collecting the correct amounts, protecting you from massive back-tax penalties and interest.
Why does my QuickBooks "Cash" not match my bank statement?
This is usually due to "Uncleared Transactions" or duplicate entries. We perform a Forensic Reconciliation to find the ghost entries and fix the mapping, ensuring your QuickBooks shows the truth, not a guess.
How do I prepare my business for the 2026 MN Paid Leave reporting?
This law requires specific quarterly reporting and premium payments starting in 2026. We handle the setup and ongoing tracking now, so you aren't scrambling or facing fines when the state starts enforcing these new regulations.
Can you help me get my financials ready for a bank loan or bonding?
Banks and bonding agents require "Clean" financials—specifically a solid Balance Sheet and WIP report. We organize your books to show high "Current Ratios" and strong equity, making you a "Low Risk" candidate for financing.
What is the difference between "Cash" and "Accrual" accounting, and which should I use?
Most contractors pay taxes on "Cash," but should manage their business on "Accrual." We set you up so you can flip between both views, allowing you to see your tax liability and your true project performance at the same time.
Scaling & Strategy:
Engineering Your Growth
Move from the field to the CEO chair. Scaling a construction company requires more than just "working harder"—it requires financial architecture. We provide the data-driven insights that allow you to make aggressive moves with zero guesswork. From analyzing equipment ROI to forecasting your next 12 months of cash flow, we help you build a business that is as solid as your projects.
I’m stuck at $1.5M in revenue—how do I get to $5M without losing control?
Scaling requires shifting from "Checkbook Accounting" to "Strategic Forecasting." We implement systems that track your fixed overhead vs. variable costs, allowing you to know exactly how many more crews or projects you need to reach the next tier profitably.
What financial metrics should I be looking at every Monday morning?
You need an "Executive Dashboard." We track your Cash Gap, your Backlog Value, and your Net Profit Margin per project. These three numbers tell you if you are healthy, if you are busy, and if you are actually making money.
When is the right time to buy new heavy equipment versus leasing?
We perform an ROI & Tax Analysis. By looking at your projected cash flow and utilizing Section 179/Bonus Depreciation, we determine which path offers the best tax advantage and the highest return on your capital.
How do I improve my "Cash Flow" so I’m not waiting on draws to pay subs?
We analyze your Accounts Receivable (AR) Aging and your billing cycles. By optimizing your draw schedule and implementing aggressive collection workflows, we shorten the "Cash Gap" so your projects fund themselves.
Can you help me prepare a 12-month financial forecast?
Yes. We build a Rolling Forecast that factors in your current backlog and your typical seasonal trends in Minnesota. This allows you to see "low points" in cash before they happen, giving you time to adjust your sales or financing.
How do I build a "Saleable" business that isn't dependent on me?
A business is only valuable if its financials are transparent and its processes are documented. We build the "Gold Standard" of books that an appraiser or buyer looks for, turning your company from a "job" into a high-value Asset.