Progress claims
Track claim number, valuation period, work completed, variations, previous claims and current amount claimed.
Financial control for project-based construction businesses
Construction companies do not earn and spend money in a neat monthly pattern. A project may require deposits, materials, labour and subcontractors long before the client approves a progress claim. Retention may remain unpaid after practical completion, and profit can disappear when variations, wastage and site costs are not tracked separately.
Orion Moon helps builders, contractors, subcontractors and related trades connect project records to accounting, VAT, payroll and management reports. The goal is to show what each project has earned, what it has cost, what remains billable and how much cash is needed to complete the work.
Project and job costing
Ordinary bookkeeping records the supplier and expense account. Construction bookkeeping should also identify the project, site, phase or cost code to which the transaction belongs.
Set up a project code for each contract, site or work order.
Allocate materials, direct labour, subcontractors, plant hire and site expenses to the correct project.
Separate tender-stage, preliminaries, variation and remedial-work costs.
Compare actual costs with the original estimate or approved budget.
Track committed costs from purchase orders and subcontract agreements where information is available.
Calculate estimated cost to complete and expected project margin.
Progress claims, certificates and retention
Project revenue should be supported by contracts, approved claims, payment certificates and tax invoices. We help maintain a schedule showing the movement from work performed to amounts invoiced and cash received.
Certificates
Compare the amount claimed with the amount certified and record any quantity, variation or timing difference.
Retention
Maintain retention receivable and payable schedules by project, including release conditions and expected dates.
Debtors
Follow up certified amounts, overdue invoices and disputes before the project experiences a cash shortage.
Variations
Record instruction, approval status, cost, selling value and invoicing position separately from the original contract.
Final account
Reconcile the contract value, approved variations, claims, retention and payments before closing the job.
Work in progress and project profitability
Cash received is not the same as revenue earned, and invoices issued are not the same as project profit. At month-end, management should understand work completed but not yet billed, advance billings, costs incurred and the remaining obligations under each contract.
Project income invoiced and certified during the period.
Costs incurred to date by category.
Work performed but not yet invoiced or certified.
Amounts invoiced in advance of work performed.
Expected remaining cost and forecast final margin.
Loss-making projects or variations requiring immediate action.
Cash-flow planning for construction
A profitable project can still fail because materials, wages and subcontractors are payable before the client pays. Orion Moon can prepare a rolling project cash-flow view using expected claims, certification delays, retention and supplier terms.
Expected dates for claims, certificates and customer receipts.
Payroll, subcontractor and material commitments by week or month.
VAT, PAYE, UIF, SDL, provisional tax and other statutory payments.
Plant purchases, finance instalments and insurance costs.
Retention amounts that should not be treated as immediately available cash.
Funding gaps and projects that require revised payment terms or deposits.
Subcontractor and supplier controls
Incomplete subcontractor records create cost, VAT and project-closeout problems. We help maintain consistent documentation and payment controls.
Supplier or subcontractor onboarding details and agreements.
Purchase orders, scopes of work and approved rates.
Invoices matched to site approval, work completed or delivery notes.
Retention and contra-charge schedules.
VAT numbers and valid tax invoices where input VAT is claimed.
Payment history, outstanding balances and supporting proof.
VAT for construction transactions
Construction VAT can be affected by contract terms, progress payments, deposits, retention, fixed-property transactions and the timing of invoices or payments. SARS publishes dedicated guidance for fixed property and construction, and each transaction should be considered using its facts.
Reconcile output VAT to progress invoices, certificates and other taxable supplies.
Review the VAT treatment and timing of retention amounts under the contract.
Claim input VAT only where the expense is for taxable activities and a valid tax invoice is held.
Separate private, exempt or non-deductible costs from project claims.
Reconcile VAT201 returns to the accounting records and project schedules.
Prepare supporting documents where SARS selects a VAT return for verification.
Construction payroll and labour records
Construction payroll often includes hourly workers, variable sites, overtime, allowances, temporary assignments and frequent starters or terminations. Payroll information must be supported by approved site records.
Employee setup, contracts, job information and site allocation.
Approved timesheets, ordinary hours, overtime, Sunday and public-holiday work.
Allowances, reimbursements, deductions and advances.
PAYE, UIF and SDL calculations and EMP201 declarations.
EMP501 reconciliations and IRP5/IT3(a) certificates.
Payroll-cost allocation by project, branch or cost centre.
Where a bargaining council, collective agreement, sector rule or earnings threshold applies, the payroll and employment terms must be configured accordingly rather than relying on a generic overtime rule.
COIDA and Letter of Good Standing support
Construction employers may need Compensation Fund or licensed-association compliance, accurate employee earnings and a valid Letter of Good Standing for contracts or tenders. Orion Moon can assist with the financial and payroll information required for registration, Return of Earnings preparation and reconciliation.
Confirm employer and nature-of-business information.
Prepare payroll earnings schedules for the applicable assessment period.
Reconcile declared earnings to payroll and accounting records.
Track assessment payments and supporting proof.
Assist with records needed to obtain or renew a Letter of Good Standing.
CIDB, tenders and business records
Where CIDB grading or tender applications apply, the contractor may need reliable company, financial, tax and project information. Orion Moon can help organise financial statements, tax-compliance records, company documents and project schedules, while the contractor remains responsible for technical, contractual and registration requirements.
Plant, vehicles and equipment
Plant and vehicles should be distinguished from ordinary repairs or consumables. We maintain asset information that supports depreciation, finance balances, tax allowances and disposal calculations.
Purchase date, supplier, cost and project or location.
Finance agreement, deposit, instalments and outstanding liability.
Repairs and maintenance separated from capital improvements.
Insurance, licence and operating costs.
Sale, trade-in, theft or scrapping documentation.
Monthly construction management report
A useful monthly pack should help the owner manage projects, not only show an accounting profit-and-loss statement.
Profit and loss, balance sheet and cash-flow summary.
Project revenue, cost, gross margin and estimated cost to complete.
Progress claim, certification, retention and debtor schedules.
Supplier, subcontractor and committed-cost summaries.
Payroll cost by project or cost centre.
VAT, PAYE and tax deadlines and expected payments.
Exceptions: overdue certificates, unapproved variations, cost overruns and negative-margin jobs.
How Orion Moon supports construction businesses
We can begin with a review of the existing chart of accounts, project codes, claim schedules, payroll process and statutory registrations. The agreed service may include monthly bookkeeping, bank reconciliations, job costing, management reports, payroll, VAT, provisional tax, annual tax and support schedules for COIDA or tender-related financial information.
Frequently asked questions
Can accounting software show profit by project?
Yes, if transactions, payroll and revenue are consistently allocated to project codes and the system is configured to report by job or tracking category.
Should retention be included in normal debtors?
Retention should be separately identifiable by project and release date so that management does not assume it is ordinary collectible debt.
Why does a profitable construction company run out of cash?
Materials, wages and subcontractors are often paid before progress claims are certified and settled. Retention and disputed variations can widen the gap.
Can Orion Moon prepare a construction tender?
We can assist with company, tax and financial information within our scope. Pricing, technical submissions, safety files and contractual tender requirements remain the contractor’s responsibility unless separately arranged with qualified specialists.
Construction contracts and tax treatments vary. Contract-specific revenue, VAT, retention and labour matters should be reviewed using the signed agreement and current law.