Construction CPA Services for Contractors Nationwide

Construction accounting gets complicated quickly. WIP schedules, retainage, job costing, revenue recognition, bonding requirements, and cash-flow management all require accounting that understands how contractors actually operate.

Castro CPA helps contractors nationwide with assurance, financial reporting, tax, and advisory services built specifically for construction businesses.

Construction Accounting Is Different

A contractor can show strong revenue and still have a cash problem, or report a healthy backlog while a few jobs are losing money. Financial statements are affected by the way contracts are priced, performed, billed, and estimated — not just by the bank balance.

• WIP schedules and job costing
• Contract assets and liabilities
• Retainage, change orders, and backlog
• Revenue recognition and ASC 606
• Overbillings and underbillings
• Uninstalled materials
• Bonding and working capital
• Equipment, debt, and cash-flow timing

CPA Services for Construction Companies

Reporting and advisory support for the financial decisions that shape a contracting business.

• Assurance — Audits, reviews, and compilations for contractors that need reliable financial statements for lenders, owners, sureties, investors, or other stakeholders.
• Tax Services — Business and individual tax preparation, multi-state compliance, and proactive tax planning for contractors and construction business owners.
• Accounting Services — Monthly bookkeeping, job-cost coding, payroll processing, and month-end close handled by a team that understands construction accounting.
• WIP & Revenue Recognition — Work-in-progress schedules, ASC 606 analysis, estimated costs to complete, change orders, contract assets, contract liabilities, and margin fade review.
• Bonding & Surety Financial Reporting — Clear, consistent reporting that helps banks and sureties evaluate working capital, equity, backlog, WIP, and contract profitability.
• DOT Prequalification Support — Accounting and financial reporting support for contractors navigating DOT prequalification, financial capacity, and related reporting requirements.

Construction Companies We Serve

Castro CPA works with construction businesses at different stages of growth, including companies preparing for bonding, lender reporting, or more disciplined project-level management.

• General contractors
• Commercial contractors
• Specialty contractors
• Electrical contractors
• Mechanical contractors
• HVAC contractors
• Plumbing contractors
• Concrete contractors
• Excavation contractors
• Roofing contractors
• Utility contractors
• Road and highway contractors
• Civil contractors
• Construction subcontractors
• Growing companies requiring bonding or lender reporting

Financial Statements Built for Bonding Conversations

For many contractors, financial statements are not simply a compliance exercise. They affect conversations with sureties, lenders, and other capital providers. Castro CPA helps contractors improve the quality and consistency of the financial information presented to those stakeholders, including accurate WIP reporting, working capital, backlog, contract profitability, balance-sheet strength, and the appropriate audit, review, or compilation requirements.

WIP Is More Than a Spreadsheet

The WIP schedule is often one of the most important management and financial-reporting tools in a construction company. It brings together contract value, approved change orders, cost incurred, estimated cost to complete, estimated gross profit, percent complete, billings, overbillings, underbillings, profit fade, and backlog. When those numbers are reviewed consistently, owners can see which jobs are producing cash, which estimates are changing, and where project teams need help before the year-end close.

A useful WIP review asks:

• Are estimated costs to complete current?
• Do billings reconcile to the contract and ledger?
• Are change orders supported and approved?
• Can margin fade be explained by job?
• Are uninstalled materials treated appropriately?

Construction Insights

• How to Read a Construction WIP Schedule — A practical review of estimate-to-complete controls, margin fade, loss accruals, and reconciliations.
• Uninstalled Materials and Your WIP Schedule — How stored materials can affect reported profit, margin, and the billing position of a job.
• What Sureties Do With Your Financial Statements — How underwriters rebuild your balance sheet and set your single-job and program bond limits.

A CPA Firm Built for Growing Contractors

Castro CPA combines construction accounting expertise with practical financial reporting for contractors nationwide. The firm provides direct access to experienced CPAs, modern technology, responsive service, and reporting grounded in the needs of contractors, lenders, and sureties.

• Construction accounting and assurance expertise
• Direct access to experienced CPAs
• Practical reporting for owners and CFOs
• Support for bonding, lenders, and external reporting
• Modern technology and responsive service
• Experience serving contractors nationwide

Construction CPA Questions

What does a construction CPA do?

A construction CPA helps contractors produce reliable financial statements and management reports around the issues that drive construction businesses: WIP schedules, job costing, retainage, change orders, revenue recognition, bonding, and cash flow. The work may include an audit, review, compilation, technical accounting guidance, or fractional CFO support. The objective is not just to close the books, but to give owners, controllers, lenders, and sureties information they can understand and use.

Why do contractors need WIP schedules?

A WIP schedule connects contract value, costs incurred, estimated costs to complete, earned revenue, billings, and expected gross profit for each open job. It helps a contractor identify margin fade, loss jobs, overbillings, underbillings, and backlog risk before those issues become year-end surprises. Sureties and lenders also use WIP information to evaluate working capital, project performance, and the quality of a contractor's financial reporting.

What financial statements do bonding companies require?

Requirements vary by contractor, size, program, and surety. A bonding company may request compiled, reviewed, or audited financial statements, a current WIP schedule, supplemental schedules, personal financial information, and interim reporting. The appropriate level of assurance depends on the surety relationship and the information needed to evaluate working capital, equity, backlog, contract profitability, and consistency. Castro CPA can discuss the reporting package your surety or agent has requested.

What is the difference between an audit, review and compilation?

An audit provides the highest level of assurance and includes detailed testing and procedures designed to support an independent opinion. A review provides limited assurance through inquiries and analytical procedures, with less testing than an audit. A compilation presents financial information in financial statement form without assurance. Lenders, sureties, owners, and other third parties may have different requirements, so the right service depends on how the statements will be used.

Can a CPA help improve construction job-cost reporting?

Yes. A CPA can evaluate whether job costs are coded consistently, whether committed costs and accruals are captured, and whether project reports reconcile to the general ledger. The review may also address cost codes, change orders, equipment burden, overhead allocation, estimate-to-complete procedures, and management reporting. Better job-cost reporting gives owners and project managers earlier visibility into profitability, cash needs, and jobs that require corrective action.

How does ASC 606 affect construction contractors?

ASC 606 affects how a contractor identifies contracts, determines the transaction price, allocates that price, and recognizes revenue as performance obligations are satisfied. For many contracts, revenue is recognized over time using a measure of progress such as cost-to-cost, but uninstalled materials, claims, unapproved change orders, loss contracts, and retainage require careful analysis. The accounting conclusion should be supported by contract terms, project records, and estimates that are updated each reporting period.

What are overbillings and underbillings?

An underbilling generally means the revenue earned on a contract exceeds billings to date, while an overbilling generally means billings exceed revenue earned. These positions are not automatically good or bad. They can reflect contract terms, billing timing, stored materials, project progress, or an inaccurate estimate. Reviewing them by job helps explain working-capital needs and can reveal revenue-recognition, cutoff, or project-management issues before financial statements are delivered to a lender or surety.

Does Castro CPA serve contractors nationwide?

Yes. Castro CPA is based in Celina and serves contractors nationwide. Meetings and document workflows can be handled remotely or in the way that best fits the contractor, its management team, lenders, and surety relationships.

Can Castro CPA assist with TxDOT contractor financial reporting?

Castro CPA works with contractors dealing with Texas Department of Transportation accounting and financial reporting requirements. The engagement can include reviewing the contractor's reporting process, financial statement presentation, WIP information, job-cost records, and supporting documentation. Specific requirements depend on the contract, procurement process, and reporting request. Castro CPA can help determine what information needs to be prepared and identify questions that should be confirmed with TxDOT or the contractor's other advisors.

Talk with a construction CPA or call (945) 544-9247.