Construction accounting firm in Oregon
As a construction accounting firm in Oregon, we work with contractors, subcontractors and builders on job costing, WIP schedules, certified payroll and the statements your surety and bank ask for. We also plan the tax method on long-term contracts.
Which contractors need a construction accounting firm?
Our construction accountants work with contractors in Portland, Lake Oswego and across Oregon:
- General contractors and subcontractors licensed with the Oregon Construction Contractors Board
- Residential builders and remodelers
- Specialty trades such as electrical, plumbing and HVAC
- Contractors bidding public works in Oregon
- Oregon contractors taking jobs in Washington
How do you read a construction WIP schedule?
On the WIP schedule we compare revenue earned on each job with the amount billed. Under the cost-to-cost method, percent complete equals costs to date divided by total estimated costs. Bill ahead of the work and the difference is an overbilling, a liability. Bill behind and it is an underbilling, an asset.
| One contract | Amount |
|---|---|
| Contract price | $1,000,000 |
| Total estimated cost | $800,000 |
| Cost to date | $400,000 |
| Percent complete | 50% |
| Revenue earned | $500,000 |
| Billed to date | $550,000 |
| Overbilling | $50,000 |
Reading a WIP schedule: one contract
$1,000,000 contract, $800,000 estimated cost, $400,000 spent
Why do contractor jobs finish below the estimate?
Crews build change orders before anyone prices them, so the job has the cost and no revenue to match
Estimators leave payroll taxes, workers' comp and benefits out of the labor rate charged to jobs, so each hour costs more than estimated
Overhead is not allocated to jobs, so the job margin is overstated until office costs are counted
With a monthly WIP schedule we see the margin slipping early in the job instead of at closeout. We carry retainage as its own receivable, so job cash is not overstated. Send us your last three closed jobs and we show you where the margin went.
What financial statements does a surety want from a contractor?
The surety sets the level of financial statements it needs for your bond program. We keep your books, WIP schedule and contractor schedules ready for the independent accountant who issues them.
- The surety reads working capital, equity, underbillings and backlog on your statements
- A surety cuts a bond line over large underbillings, late-year owner distributions and unposted job costs
- We review the WIP and balance sheet before the surety does
Surety or bank asking for year-end statements? Send the request and your latest WIP. We confirm the level of report and the date we can deliver it.
Which tax accounting method can a contractor use for long-term contracts?
Large contractors use the percentage-of-completion method for long-term contracts (26 U.S.C. 460). Under two exceptions a contractor can use the completed-contract or another method:
Small contractors: average annual gross receipts of $32 million or less for tax years beginning in 2026, on contracts expected to finish within two years (IRS Rev. Proc. 2025-32)
Residential construction contracts, regardless of contractor size. Until 2025 the exemption was limited to buildings with four or fewer units; for contracts entered into in tax years beginning after July 4, 2025 (from January 1, 2026 for a calendar-year contractor), apartment, condominium and student-housing projects are included (26 U.S.C. 460(e))
Under each method, income is taxed at a different point. We model both before you elect. We also time equipment purchases against current bonus depreciation before year-end.
What Oregon rules affect contractor accounting?
Contractors must hold an active license with the Oregon Construction Contractors Board, with bond and insurance
On public works, contractors complete certified payroll statements weekly and submit them monthly, by the fifth business day of the following month (Oregon BOLI)
Oregon charges Corporate Activity Tax of $250 plus 0.57% above $1 million of taxable Oregon commercial activity (Oregon DOR)
On Portland-area jobs you may also owe the city business license tax, the Multnomah County business income tax and, with more than $5 million in gross receipts (2026), the Metro Supportive Housing Services business income tax
What changes when an Oregon contractor works in Washington?
Washington requires contractor registration with the Department of Labor and Industries (L&I). Washington generally treats construction for a Washington customer as a retail sale, so you collect sales tax and pay business and occupation tax on it (Washington DOR). We track Washington jobs separately in the books.
What do our construction accounting services include?
- Job costing by phase and cost code
- Monthly WIP schedules and backlog reports
- Certified payroll for Oregon BOLI and federal Davis-Bacon jobs, with union and prevailing wage reporting
- Subcontractor 1099s and insurance certificates
- Workers' comp premium audit prep
- Equipment and depreciation schedules
- Business returns, Oregon CAT returns including the cost-inputs subtraction, and tax method planning
We work in QuickBooks with job costing by cost code, and take job cost exports from the estimating and project software you already use.
What affects the cost of construction accounting?
We price construction accounting on five factors.
- Number of active jobs
- Public works and certified payroll volume
- Level of statements the surety needs
- Jobs in more than one state
- The condition of job cost records
The light end is a single-entity contractor with a few active jobs, no public works and simple surety reporting. These are the factors, not a quote.
Talk to an Oregon construction accounting firm
Send your latest WIP schedule, job list and the surety or bank request. We set out the reporting you need and when we can deliver it.
(503) 388-4353info@daytaxaccounting.com555 SE Martin Luther King Jr Blvd, Suite 105, Portland, OR 97214