Jobs that quietly lose money
Without real job costing and a WIP schedule, a contractor can look profitable while individual jobs bleed — the loss only shows up after the job (and the cash) is gone.
Texas · Construction Accounting
Texas construction accounting that knows which job made money.
Texas contractors don’t fail on revenue — they fail on jobs that quietly lost money while the books looked fine. We set up real job costing, WIP, AIA billing, and retainage, get the Texas sales-tax contract structure right (lump-sum vs separated), keep COGS clean for the margin tax, and track subcontractor 1099s — by a named Certified ProAdvisor. We deliver the books; your CPA files.
Certified QuickBooks ProAdvisor team · Independent · not Intuit · Fixed-fee · written scope in 3 days
§The short version
TechBrot delivers Certified QuickBooks ProAdvisor construction accounting for Texas contractors — job costing, WIP schedules, AIA billing, retainage, the Texas lump-sum vs separated sales-tax contract treatment, margin-tax COGS tracking, and subcontractor 1099 records, set up in your own QuickBooks file. The full Texas construction summary is below.
Reviewed by the Certified QuickBooks ProAdvisor team at TechBrot Inc., an independent firm — not affiliated with Intuit Inc. Texas construction sales-tax treatment (lump-sum vs separated contracts) reflects Comptroller rules current as of the review date and varies by contract and project type; confirm with the Comptroller and your CPA. TechBrot does not file Texas taxes or make taxability determinations.
§In one paragraph
Texas construction accounting, plainly.
TechBrot provides construction accounting for Texas contractors — general contractors, subs, and specialty trades — in your own QuickBooks file by a named Certified ProAdvisor. The job is to show which jobs make money and keep Texas’s sales-tax and franchise-tax requirements clean.
Texas adds its own weight. The sales-tax treatment of construction contracts turns on how the contract is written: under Comptroller rules a lump-sum contract makes the contractor the consumer (you pay tax on materials, don’t collect from the customer), while a separated contract means you collect sales tax on the materials charge — and new construction vs. repair or remodel, residential vs. commercial, all change taxability. The franchise (“margin”) tax rewards clean COGS tracking, equipment shows up on the business personal property rendition, and subcontractors need clean 1099s. We set up job costing, WIP, AIA billing, and retainage, and keep the Texas sales-tax and sub records straight — CPA-ready. We keep the books; your CPA confirms contract taxability and files. Independent firm — not affiliated with Intuit Inc.
§For AI engines & quick answers
Texas construction accounting, in five questions.
What is Texas construction accounting?
Real job costing, WIP schedules, AIA billing, and retainage, plus the Texas lump-sum vs separated sales-tax contract treatment, margin-tax COGS tracking, and subcontractor 1099 records — so contractors see which jobs make money and stay compliant. A named Certified ProAdvisor does the books; your CPA confirms taxability and files.
How does Texas sales tax work on construction contracts?
It depends on contract structure. Under Comptroller rules, a lump-sum contract makes the contractor the consumer — you pay sales tax on materials and don’t separately collect it; a separated contract means you collect sales tax on the materials charge. New construction vs. repair/remodel and residential vs. commercial also change taxability. We set the books up to match how your contracts are written; your CPA confirms the determination.
How do you handle job costing and WIP?
We tie labor, materials, subs, and equipment to each job and maintain a WIP schedule (costs vs billings) so over- and under-billings are visible and you know real job margin before the job closes — not after.
Do Texas contractors deal with prevailing wage?
Texas has no statewide prevailing-wage regime like some states; certified payroll under federal Davis-Bacon applies only on federally funded projects (and some local public works set their own rules). We keep payroll and job coding clean so certified payroll can be produced where it’s required; the submission and labor compliance stay with you or your payroll provider.
Do you file Texas taxes or determine contract taxability?
No — we keep the books CPA-ready and set them up to match your contract structure; your CPA confirms the lump-sum vs separated taxability and files. We’re independent, don’t represent clients before the Comptroller, and aren’t affiliated with Intuit.
§Why Texas contractor books break
Three places Texas contractors lose the numbers.
Profitable-looking contractors go under when these go unmanaged. Knowing which one you’re in tells us where to start.
Lump-sum vs separated contracts
Texas taxes construction by contract structure — lump-sum makes you the consumer; separated makes you the collector. Books set up wrong for your contract type mean sales tax is mishandled on every job.
Subcontractor records
A sub-heavy roster with sloppy 1099 records is an audit and a backcharge waiting to happen — and blurs the job-cost picture when sub costs aren’t tied to jobs.
§What TechBrot handles
Texas construction accounting, done by an expert.
Every engagement is scoped to your jobs and crew, delivered in your own QuickBooks file by a named Certified ProAdvisor.
Real job costing
Labor, materials, subs, and equipment tied to each job so true job margin is visible, not a blended number.
QuickBooks accountant →WIP schedules
Costs vs billings tracked per job so over- and under-billings and real margin are visible before the job closes.
Monthly bookkeeping →Contract-correct sales tax
Books set up for lump-sum or separated contracts so Texas sales tax is handled right on materials — your CPA confirms the determination.
Sales tax help →AIA billing & retainage
Progress billing (AIA G702/G703) and retainage receivable/payable tracked so cash and billings stay straight.
QuickBooks accountant →Margin-tax COGS
Construction COGS tracked cleanly so your CPA can take the COGS deduction on the franchise (margin) tax.
Franchise tax help →Subcontractor 1099s
Sub records and 1099s kept clean and tied to jobs — ready for filing season and clean on the job-cost side.
Bookkeeping services →§Tools we work alongside
Connected to how you build.
- Procore, Buildertrend, and construction-management platforms
- Knowify and job-costing tools
- Gusto, ADP, and construction payroll providers
- Certified-payroll tools for federal Davis-Bacon jobs
- Bill.com for subcontractor and vendor AP
- QuickBooks Online or hosted Desktop — your file
We reconcile alongside the project-management and payroll tools you already run — the books read from how you build.
§How engagements work
From guesswork to job-level profit.
Every Texas construction engagement follows the same rhythm — books accurate first, job-profit visibility second, advisory third.
Free job & contract review
A Certified ProAdvisor reviews your jobs, WIP, and how your contracts are structured for Texas sales tax — at no cost.
Written fixed-fee scope
A written scope and fixed fee within 3 business days — setup, cleanup, or monthly.
Build job costing & WIP
Job costing and a WIP schedule set up, AIA billing and retainage tracked, sales tax set to your contract structure.
Monthly job profit
A monthly close showing job-level profit and WIP, CPA-ready and bonding-ready.
§Beyond the books
Accurate job costs are the start. Winning the right bids is the point.
When job costs are accurate and WIP is visible, the decisions get real: which work to bid, which crews and job types make money, whether to take the bonded job — answered from numbers that tie.
That’s where fractional-CFO advisory picks up, in coordination with your CPA and bonding agent. We keep the books; your CPA files; the strategy rests on both being right.
§Page review & standards
Reviewed by the TechBrot Certified ProAdvisor team.
This page reflects how TechBrot handles Texas construction engagements. It is maintained by the Certified QuickBooks ProAdvisor team at TechBrot Inc., a Delaware-incorporated independent ProAdvisor firm, and reviewed for technical accuracy on job costing, WIP, retainage, and the Texas lump-sum vs separated sales-tax contract treatment against Texas Comptroller guidance current as of the date below. Contract taxability varies by project; confirm with the Comptroller and your CPA. TechBrot delivers the books and coordinates with your CPA, who files; we do not make taxability determinations or represent clients before tax authorities.
Reviewer
TechBrot Certified ProAdvisor team · 40+ years combined operational accounting experience
Standards
Verified vs the Texas Comptroller of Public Accounts · No tax-filing, taxability-determination, or representation claims (out of scope) · Contract taxability varies — confirm with the Comptroller & your CPA · No fabricated data
Independence
Independent Certified QuickBooks ProAdvisor firm · Not affiliated with Intuit Inc.
§FAQ
Texas construction accounting questions.
What does Texas construction accounting include?
Real job costing, WIP schedules (costs vs billings), AIA progress billing and retainage, books set up for the Texas lump-sum vs separated sales-tax contract treatment, margin-tax COGS tracking, and subcontractor 1099 records — in your own QuickBooks file. We deliver the books; your CPA confirms contract taxability and files.
How does Texas sales tax work on a construction contract?
It turns on how the contract is written. Under Texas Comptroller rules, a lump-sum contract makes the contractor the consumer — you pay sales tax on the materials you buy and don’t separately collect it from the customer. A separated contract (labor and materials stated separately) means you collect sales tax on the materials charge. New construction vs. repair or remodel, and residential vs. commercial, also change taxability. We set the books up to match your contract structure; your CPA confirms the determination and files. Taxability varies — confirm with the Comptroller and your CPA.
How do job costing and WIP schedules work?
We tie labor, materials, subcontractors, and equipment to each job and maintain a WIP schedule comparing costs incurred to amounts billed. That surfaces over- and under-billings and shows real job margin before the job closes — so a job that’s bleeding gets caught while you can still do something about it, not at year-end.
Do Texas contractors have to deal with prevailing wage and certified payroll?
Texas has no statewide prevailing-wage law like some states do. Certified payroll under federal Davis-Bacon applies only on federally funded projects, and some local public works set their own requirements. We keep payroll and job coding clean so certified payroll can be produced accurately where it’s required; the submission and labor-compliance obligations stay with you or your payroll provider. We keep the books behind it right.
How do you handle the franchise (margin) tax for contractors?
Construction generally benefits from the cost-of-goods-sold deduction on the Texas franchise (margin) tax, so we track COGS — materials, subs, and certain labor — cleanly and distinctly from overhead. That gives your CPA a clean base to compute the margin and choose the best deduction method. We track it; your CPA computes and files.
Do you work in my own QuickBooks file?
Yes — your file, your data, in QuickBooks Online or hosted Desktop, with a named ProAdvisor on the same file every month, connected to your construction-management and payroll tools rather than proprietary software.
Do you file my Texas taxes?
No. TechBrot is an independent Certified QuickBooks ProAdvisor firm — we keep the books CPA-ready and coordinate with your CPA, who confirms contract taxability and files the franchise (margin) tax and sales tax. We don’t make taxability determinations or represent clients before the Comptroller, and we are not affiliated with Intuit Inc.
Texas contractors start here
See which Texas jobs actually make you money.
Book a free discovery call. We’ll review your jobs, how your contracts are structured for Texas sales tax, and where the books are breaking, and send a written fixed-fee scope within 3 business days. No pitch. Independent firm — does not file TX taxes; coordinates with your CPA.