Use one project reference across the records
The project code should follow time, supplier invoices, subcontractor charges, customer billing and approved changes. We agree the distinction between direct costs and shared overhead, and document how employment costs or shared purchases are allocated.
A useful monthly view can compare approved revenue, actual direct costs, committed purchases and estimated costs to finish. Those columns need separate definitions: an approved purchase order is not automatically a current expense, and a proposed variation is not automatically collectible revenue.
Make the estimate explainable
The project manager owns the operational forecast and the evidence for scope changes. Bookkeeping connects that information to the ledger and flags gaps. Reports should show the date of the estimate and explain major movements instead of silently replacing the original budget.
Illustrative example: a commercial fit-out
A Calgary tenant-improvement project has $120,000 in approved revenue. Recorded direct costs are $70,000 and the manager estimates a further $30,000 to finish. The projected direct contribution is $20,000 before overhead, financing and tax. An unapproved $8,000 variation is shown separately until its status is resolved.
Questions about this work
Is project contribution the same as profit?
No. A direct contribution can exclude office overhead, financing and other expenses. We label the calculation and define included costs.
Can you certify construction progress or a payment entitlement?
No. Technical certification and legal payment rights require the appropriate professional. We organize financial records and preserve the supporting approvals.
Put this into practice
Sources and current guidance
A practical next step
Bring the records you have.
We can identify missing information, agree on the scope and organize the next bookkeeping step.
Request a bookkeeping review