Running a successful concrete contracting business requires more than just expertise in pouring perfect slabs and finishes. At Vickney & Associates CPA, we've helped many concrete contractors throughout Wisconsin solidify their financial foundation. Here are our top bookkeeping tips to help your concrete business build lasting profitability.

Master Job Costing for Better Profitability

For concrete contractors, understanding the true cost of each project is essential to pricing accurately and identifying profitable job types.

Implement job costing that tracks:

• Concrete material costs (different mixes and additives)
• Reinforcement materials (rebar, wire mesh, fiber)
• Form materials and rentals
• Labor hours by task (forming, pouring, finishing)
• Equipment usage
• Fuel costs for equipment and transportation
• Subcontractor expenses

By analyzing completed jobs, you'll discover which types of concrete work yield the best returns and which might be draining your profits.

Track Material Quantities and Wastage

Concrete work involves significant material costs, and wastage directly impacts your bottom line. Your bookkeeping system should:

• Record estimated vs. actual concrete quantities used
• Track wastage percentages by job type
• Document returned or unused materials
• Note weather or site conditions that affected material usage

This data will help you estimate more accurately and identify opportunities to reduce costly material waste.

Manage Weather-Related Downtime

In Wisconsin's variable climate, weather-related downtime is inevitable in the concrete business. Your bookkeeping should:

• Track non-billable labor during rain delays
• Document weather-related schedule changes
• Record additional costs for cold-weather concrete work
• Note seasonal patterns to better plan cash flow

With proper tracking, you can better manage these unavoidable business costs and adjust pricing accordingly.

Establish Clear Equipment Depreciation Schedules

Concrete contractors typically have significant investments in specialized equipment. Proper bookkeeping requires:

• Detailed asset records for mixers, pumps, power trowels, and other equipment
• Tracking of maintenance and repair costs by equipment piece
• Appropriate depreciation schedules for tax purposes
• Usage logs to support business use percentage

This detailed tracking helps with both tax planning and equipment replacement decisions.

Implement Systems for Small Tools Management

The smaller tools used in concrete work often represent a significant ongoing expense that can go untracked:

• Create an inventory system for trowels, floats, screeds, and other hand tools
• Track tool purchases and replacements
• Implement a check-out system for employees
• Document tool losses and breakage

Small tool expenses can add up quickly, and proper tracking helps control these costs.

Properly Handle Sales Tax Complexities

Concrete contractors face complicated sales tax rules in Wisconsin, as some projects are taxable while others are exempt:

• Establish clear systems to determine taxable status of each project
• Document exemption certificates for non-taxable work
• Track sales tax collected on taxable projects
• Maintain records of sales tax paid on materials

Proper sales tax management prevents costly audit issues down the road.

Address Retention and Progress Billing

Many concrete projects involve retention and progress payments that require special bookkeeping attention:

• Track retained amounts by project
• Document when retention becomes billable
• Set up your accounting system to handle progress billing
• Monitor aging on retention amounts

Proper retention tracking ensures you collect all money earned on completed projects.

Manage Seasonal Cash Flow Challenges

The concrete business in Wisconsin has definite seasonal patterns that impact cash flow:

• Track monthly revenue and expense patterns
• Build cash reserves during peak seasons
• Plan for reduced winter revenue
• Document insurance and maintenance expenses in slower periods
• Consider offering winter discounts for spring work (with deposits)

Proper cash flow management is essential to surviving the seasonal concrete business cycle.

Document Vehicle Usage Properly

Concrete contractors rely heavily on trucks and service vehicles, creating significant tax deduction opportunities:

• Maintain detailed mileage logs
• Track fuel expenses by vehicle
• Document business use percentages
• Record maintenance and repair costs

With proper documentation, vehicle expenses can substantially reduce your tax liability.

Consider Specialized Construction Accounting Software

While general bookkeeping software can work, specialized construction accounting solutions offer important advantages:

• Built-in job costing features
• Progress billing capabilities
• Retention tracking
• Equipment management
• Integration with estimating software

These specialized tools can save time while providing better business insights.

Ready to Pour a Stronger Financial Foundation?

At Vickney & Associates CPA, we understand the unique bookkeeping and tax challenges concrete contractors face. Our team can help you implement these best practices and develop a customized financial management system that solidifies your business success.

Contact us today to schedule a consultation and learn how our proactive accounting approach can help your concrete contracting business achieve lasting financial strength.

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