Overhead Expenses

 

A qualified construction accountant doesn’t just “review totals.”

They trace cost flow from source → job → financial statement.

If your overhead percentage hasn’t been challenged lately — it’s time.

One of the most common problems I find when I review contractor books:

👉 Direct job costs buried inside Overhead accounts

Here’s what usually gets dumped into Overhead by mistake:

➖ Project labor that wasn’t tied to jobs

➖Materials bought without job names attached

➖Subcontractors coded to generic expense accounts

➖Equipment rentals not assigned to projects

➖Permit & inspection fees expensed as admin costs

Result?

❌ Job profitability reports are fiction

❌ Bids are based on distorted historical margins

❌ Overhead looks bloated

❌ You underprice future work

❌ You blame the market — instead of the math

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