Cost Code Articles | Better Job Profitability Tracking

The Job Costing Mistakes Killing Your Construction Profit Margins

Most builders finish a job, look at the final numbers, and wonder where the profit went. The answer is almost never "we undercharged" — it's almost always a job costing problem that was invisible during the project. Here are the six specific mistakes that destroy margin data before you can act on it, and how to fix each one before the next job closes.

9 min read Apr 17, 2026

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Accounting

Construction WIP Journal Entries in QuickBooks: Over and Under Billing Explained

Most construction QuickBooks files have no WIP accounting at all — meaning revenue and costs never match actual project progress. Over-billing and under-billing both create tax and cash flow problems builders don't see coming. Here's the journal entry structure that fixes it.

Job Costing

How to Calculate Your Construction Overhead Rate (And Stop Underpricing Jobs)

Most builders are underpricing every job they bid because they don't know their true overhead rate. They guess at a markup, add a little for profit, and wonder why the money disappears. Here's the exact overhead rate calculation I use with builders at every revenue level — and why getting this number right is the single highest-leverage financial move you can make.

Financial Systems

Construction Accounts Receivable: Stop Chasing Payments

Most residential builders at $1M–$3M in revenue have $30,000–$80,000 in past-due accounts receivable at any given time. Slow collections don't feel like a business problem until they become a cash flow crisis. Here's the AR system that prevents slow pay before it starts — and recovers outstanding balances when it does.

Job Costing

Construction Project Closeout: The Process That Protects Your Margin

Most builders lose money at the end of jobs, not because the work was bad but because the closeout process is nonexistent. Unbilled change orders, unapproved punch list items, and missing final draws are all closeout failures. Here's the six-step closeout sequence I install with every builder I work with.

QuickBooks

QuickBooks Progress Invoicing for Builders: Bill What You've Earned

Most builders create separate invoices for each draw manually or bill in full at the end — leaving a cash flow gap that QuickBooks progress invoicing eliminates in under an hour of setup. Here's the configuration that matches your billing to your draw schedule and keeps your cash position from going negative mid-project.

Job Costing

The Construction Job Close Report: Stop Repeating Expensive Mistakes

The job close report is the most valuable document a builder never writes. It compares estimated vs. actual costs by cost code, surfaces exactly where your bid was wrong, and gives you the data to improve every future estimate. Most builders skip it because they're already moving to the next job. Here's the 60-minute process that makes it non-negotiable.

Cost Code Audit & Cleanup Articles

The Job Costing Mistakes Killing Your Construction Profit Margins

Construction WIP Journal Entries in QuickBooks: Over and Under Billing Explained

How to Calculate Your Construction Overhead Rate (And Stop Underpricing Jobs)

Construction Accounts Receivable: Stop Chasing Payments

Construction Project Closeout: The Process That Protects Your Margin

QuickBooks Progress Invoicing for Builders: Bill What You've Earned

The Construction Job Close Report: Stop Repeating Expensive Mistakes

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