Accounting Built for Construction Businesses in BC
Holdbacks, progress billings, work-in-progress and T5018s — construction accounting is its own discipline. We handle the numbers behind the build so cash flow and costing never catch you out.
Quick answer: BC construction companies must handle holdbacks, progress billings, subcontractor versus employee status, and WorkSafeBC clearance alongside the usual T2 corporate return and GST/PST filings. Revenue recognition on work-in-progress is where most year-end surprises come from. EverStone prepares construction year-ends and corporate tax for Fraser Valley builders and trades, online. Published fees start at $325 a month for bookkeeping and $125 for a personal return.
For a one-owner BC construction company, monthly bookkeeping, payroll and the year-end T2 with statements usually cost from $500 to $700 a month all-in. The year-end covers the T2 with Schedule 1 and Schedule 50, the CCA schedule, the small business deduction, T4 or T5 slips for the owner’s pay, and the instalments for the year ahead.
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Construction businesses rarely fail for lack of work — they fail on cash flow and costing. Holdbacks tie up part of every invoice, progress billings lag the work, work-in-progress has to be measured, and the CRA cross-checks subcontractor reporting. Together they make the accounting behind a construction company genuinely more complex than most small businesses. EverStone works with BC builders, trades and sub-trades to keep the job costing accurate, the cash flow visible, and the tax and compliance handled — entirely online.
Related: Accountant for plumbers, electricians and HVAC contractors.
For the wider picture — what makes construction accounting different from ordinary small business accounting, and every guide, calculator and city page on the subject. See the construction and trades accounting hub.
What we handle for renovation, drywall and other construction businesses
- Job costing so you know the margin on every project, not just the year
- Work-in-progress and percentage-of-completion accounting
- Holdback tracking — both receivable and payable
- T5018 subcontractor reporting, filed correctly and on time
- Equipment purchases, financing and capital cost allowance (CCA)
- GST and BC PST on construction, plus progress-billing cash-flow forecasting
The numbers that decide whether a build is profitable
A busy construction company can still run out of cash. These are the areas where the accounting either protects your margin or quietly erodes it.
Cash flow vs. profit on projects
A profitable job can still starve you of cash if holdbacks and slow progress billings tie up your money. We forecast project cash flow so a healthy backlog never turns into an empty bank account mid-build.
Holdbacks — on both sides
BC builders typically hold back a portion of what they owe subcontractors, and have the same held back on them. Tracking holdback receivable and payable correctly keeps your books, and your GST — accurate, and makes sure you actually collect what’s owed at the end.
Work-in-progress & percentage of completion
Long jobs that span a year-end have to recognize revenue and cost as the work progresses, not just when you invoice. Getting WIP right is what makes your financial statements, and your tax — reflect reality instead of lumpy billing.
T5018 subcontractor reporting
If you pay subcontractors, you likely owe the CRA a T5018 information return, and the CRA cross-matches every slip. We build the tracking into your books so reporting is a non-event, not a year-end scramble.
Equipment: buy, finance or lease
Trucks, tools and heavy equipment are big-ticket decisions with real tax consequences through capital cost allowance and financing. We help you time and structure purchases so the deductions land when they help most.
One main contractor? Watch PSB risk
Sub-trades who incorporate and work almost exclusively for one general contractor can drift into personal-services-business territory, which strips away the small-business rate. We assess and manage that risk before it costs you.
Working with EverStone, start to finish
Enquiry & job review
We look at how you bid, bill and pay subs, and where cash gets stuck — then quote a fixed fee before any work begins.
We set up job costing & tracking
We get your books, WIP, holdbacks and T5018 tracking in order so every project’s margin and your cash position are clear.
We keep it current all year
Monthly books, GST/PST, subcontractor reporting and tax — handled on schedule, so year-end is clean and nothing surprises you.
Construction work connects to our contractor accounting and corporate tax services. See our guides on T5018 subcontractor reporting and Capital cost allowance: how CCA classes actually work.
British Columbia’s rates and thresholds are set out on the British Columbia tax facts page. Across the province, see accounting in British Columbia.
Construction accounting questions
How is construction accounting different from regular bookkeeping?+
Do I have to file T5018s for my subcontractors?+
How do holdbacks affect my taxes and GST?+
Can you help with cash flow, not just tax?+
Do you work with construction businesses outside the Fraser Valley?+
Does BC PST apply to my construction contracts?+
Do I need WorkSafeBC clearance before paying a subcontractor?+
What does an accountant cost for a British Columbia construction accounting business?+
Which parts of British Columbia do you serve?+
Why clients stay with EverStone
Rated 5.0 on Google across 21 client reviews.
“…We switched to him last year for both our personal and small-business taxes — responsive, knowledgeable and quick.”
“…He is very knowledgeable and has saved me tons in taxes by restructuring my group of companies — the best accountant I’ve worked with in the last 10 years, after switching from three different firms.”
“…have been completing my bookkeeping, taxes and financials for the last 2 years and they have been amazing. Thank you!”
WorkSafeBC coverage for the crews you hire
Coverage is the other half of running crews in this province: paying an unregistered subcontractor can make you the employer for insurance purposes. See WorkSafeBC registration for BC employers for who has to register and how classification units set your rate.
Information on this page was last reviewed in . See our editorial policy.
Beyond the year end
Compliance answers what happened. Three decisions determine whether a contracting business grows safely: backlog, how much working capital each job absorbs, and holding bid margins against what jobs actually cost. They are covered on fractional CFO support for Surrey construction and logistics companies.
Contracting outside British Columbia
Construction bookkeeping services
Monthly bookkeeping for a construction company is job-based: costs coded to each job, progress billings and holdbacks tracked separately from ordinary receivables, subcontractor payments set up for T5018 slips, and GST on each draw. That is the work behind our monthly bookkeeping, scoped to how your company bills.
What construction accounting costs
Construction files are quoted after a look at the job-costing and holdback position, and the fee is fixed before the work starts; the published fee page shows the starting points.
Starting fees
Every fee is fixed in writing before any work begins.
- Monthly bookkeeping, GST/PST filing includedfrom $325 a month
- Payroll, remittances, T4s and ROEsincluded in monthly bookkeeping
- Books, payroll and the year-end T2 together$500–$700 a month
- Corporate year-end and T2 returnfixed fee, quoted in writing
- Personal tax return (T1)from $125; self-employed or rental $275–$500
- Catch-up bookkeepingfrom $2,200 per year of records
- Controller or CFO supportcontroller from $1,650, CFO from $2,750 a month
- One-off advice call with a CPA$225 plus GST
Building something? Let’s get the numbers right.
We’ll set up job costing, sort your holdbacks and T5018s, and keep your project cash flow visible. Send an enquiry to a CPA.
We work with builders and trades throughout the Fraser Valley, including in Abbotsford, Chilliwack, Langley, Mission, Maple Ridge and Surrey.
See also the Everything for incorporated contractors for the wider set of guides on subcontractor reporting, equipment write-offs and paying yourself from a contracting corporation.
We work with contractors working around Langley, and do — same fixed-fee approach, entirely remote.
Talk to a CPA about this
One Chartered Professional Accountant, start to finish. Fixed fees, quoted in writing before any work begins, and no obligation from a first conversation.
“Personal. Professional. Responsive. Plus he saved me a bundle!”