Percentage of Completion · Construction Accounting · Revenue Recognition · WIP
Percentage of Completion · Revenue Recognition · WIP · Construction Accounting · GAAP
Percentage of
Completion Method.
The percentage of completion method is the standard revenue recognition approach for commercial construction subcontractors. It recognizes revenue proportionally as work is completed — so your P&L reflects what you've actually earned, not what you've billed. Here is exactly how it works and why it matters for your financial management.
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SPM vs. Other CFO Firms
Most CFO Firms Serving This Trade
- High revenue minimums — most won't serve under $5M
- Advisory only — no bookkeeping, no implementation
- No job costing setup or ControlQore management
- No monthly WIP as standard deliverable
- No pricing published — discovery call required
- No vetted partner network for bonding, lending, or liens
- No prevailing wage specialty
The Construction CFO — SPM
- Serves $1M–$12M — starts at $1,900/month
- Full implementation — bookkeeping, job costing, CFO advisory
- ControlQore setup and managed for you every month
- Monthly WIP standard in Executive tier
- Full pricing published — no discovery call to find out costs
- Vetted partners for bonding, lending, lien services, payroll
- Prevailing wage and Davis-Bacon specialty
What We See in This Business
01
Your P&L Doesn't Reflect Work in Progress
If you're not using percentage of completion, your P&L only shows revenue when you bill — not when you earn it. A 12-month job shows nothing for 11 months and then a spike at completion. Your financial statements for most of the year don't reflect the work you've actually performed, making them nearly useless for financial management.
02
Your WIP Schedule Doesn't Reconcile to Your Books
A WIP schedule calculates earned revenue using percentage of completion math. If your books don't use the same method, the WIP and the P&L tell different stories — and neither is fully trusted. This is one of the most common reasons sureties and bankers question the accuracy of a contractor's financial statements.
03
You Don't Know Your True Profitability on Active Jobs
Without percentage of completion accounting, you can't know whether active jobs are trending profitable or unprofitable in real time. The information only arrives at closeout — when it's too late to do anything about a problem.
How SPM Fixes It
How Percentage of Completion Works
Revenue recognized equals contract value multiplied by percent complete. Percent complete equals costs incurred to date divided by total estimated cost. If a $600K contract has $200K in costs incurred and $500K in total estimated cost, percent complete is 40% and recognized revenue is $240K — regardless of whether you've billed that amount. The difference between recognized revenue and billed amount is your overbilled or underbilled position.
The WIP Connection
Percentage of completion is the math behind WIP reporting. The WIP schedule calculates earned revenue using this exact formula for every active job — showing you earned revenue, billed revenue, and the overbilled or underbilled gap. Without percentage of completion accounting in your books, the WIP can't be reconciled to your financial statements.
SPM Configures Your Books for Percentage of Completion
During the 60-day onboarding, SPM configures ControlQore and your chart of accounts to use percentage of completion revenue recognition — including the WIP accounts (costs in excess of billings and billings in excess of costs) that make the balance sheet and WIP schedule reconcile. Your financial statements reflect construction reality from day one.
Service Tiers
Tier 01
Core Financial
Starts at $1,900 / month
- ControlQore setup and management
- Job costing aligned to your estimate structure
- Cost-to-complete tracking — updated monthly
- Full-service bookkeeping — minimum 30 min/week
- Vendor payments via ACH (you approve, we initiate)
- Accounts receivable management
- Bank reconciliations and transaction matching
- Controllership
- 1 monthly CFO meeting
- 60-day onboarding — books migrated to last taxable year
Most Popular
Tier 02
Executive Financial
Starts at $2,900 / month
- Everything in Core Financial
- Monthly WIP schedule — delivered every month, standard
- 13-week cash flow forecasting
- CEO Report — monthly financial dashboard
- 3 CFO advisory meetings per month
- Strategic accountability and actionable to-dos
- Direct access to Josh Luebker
Pricing by Revenue
Revenue Range
(Last 12 Months) |
Core Financial
Monthly |
Executive Financial
Monthly |
| Under $1M | $1,900 | $2,900 |
| $1M – $3M | $2,600 | $3,600 |
| $4M – $6M | $3,800 | $5,500 |
| $7M – $9M | $5,100 | $6,900 |
| $10M – $12M | $6,100 | $8,500 |
| $13M+ | Quoted | Quoted |
Vetted Partner Network
National Lien Services
When AR gets too long, we connect you directly to our lien services partner to protect what you've earned.
Additional cost — not included in monthly fee
Payroll Integration Partners
Prevailing wage and regular payroll software partners integrated directly with ControlQore job costing.
Additional cost — not included in monthly fee
Bonding Partners
Surety relationships and bonding capacity support. We prepare the financials — our partners get you bonded.
Additional cost — not included in monthly fee
Lending Partners
Working capital lines and equipment financing through vetted lenders who understand construction.
Additional cost — not included in monthly fee
Reviewed Financials
CPA-level financial statement reviews for banking, bonding, and large contract requirements.
Additional cost — not included in monthly fee
CPA Coordination
We work alongside your existing CPA — not replacing them. Clean books and job costing make tax time easier.
Included — no extra cost
Common Questions
Straight answers.
What is the difference between percentage of completion and cash basis accounting?
Cash basis accounting recognizes revenue when cash is received. Percentage of completion recognizes revenue when work is performed — regardless of billing or collection timing. For a commercial subcontractor doing multi-month projects, cash basis produces financial statements that are completely disconnected from actual business performance. Most lenders and sureties require accrual basis accounting with percentage of completion for construction.
Is percentage of completion required for GAAP?
For commercial construction contracts of substantial duration, percentage of completion is the required method under GAAP (ASC 606) when the outcome can be reasonably estimated. Completed contract is only allowed when the outcome cannot be reasonably estimated — which is rare for most commercial subcontracts with defined scope and contract values.
What's included in Core Financial?
ControlQore setup, job costing aligned to your estimates, cost-to-complete tracking, full bookkeeping (minimum 30 min/week), ACH vendor payments (you approve, we initiate), AR management, bank reconciliations, transaction matching, controllership, and 1 monthly CFO meeting. Starts at $1,900/month.
What does Executive Financial add?
Everything in Core plus monthly WIP schedule, 13-week cash flow forecasting, CEO Report, and 3 CFO advisory meetings per month. Starts at $2,900/month. WIP, cash flow forecasting, and the CEO Report are Executive tier only.
Do you handle payroll?
No. We have vetted payroll software partners — including prevailing wage integrations — that connect directly with ControlQore. Those are separate engagements at additional cost.
How long does onboarding take?
60 days. We migrate your books to the start of your last taxable year, set up ControlQore, and build your job costing structure. Fully operational in two months.
What software do clients use?
ControlQore. All SPM clients run on ControlQore for job costing and WIP. We set it up and manage it — you don't have to learn it. Clients switching from QuickBooks, Sage, or other platforms migrate during onboarding.
Do you work alongside our CPA?
Yes. We work alongside your existing CPA — not replacing them. Clean books and accurate job costing make their job easier at tax time.
What happens when we grow past $12M?
We have a clear graduation path. We prepare your financials, systems, and team for the transition and connect you with the right firm for your next stage of growth.