Bookkeeping & Accounting for Architects and Firms

What is Bookkeeping for Architects?

Bookkeeping for architects is the process of tracking income and expenses by project and phase, not just at a firm level. It covers retainers, phase-based billing, reimbursable costs, and long project timelines. The goal is to see accurate margins for each project while keeping monthly books clean and up to date. Without this structure, firms often miss overruns and underbilled work.

What are the Architecture Bookkeeping Services Offered by Companies?

• Project-Based Bookkeeping: Tracking income and expenses by project and phase.
• Work-in-Progress (WIP) Tracking: Monitoring billed vs unbilled revenue accurately.
• Accounts Receivable Management: Tracking client invoices, retainers, and milestone payments.
• Accounts Payable Management: Vendor bills, consultants, software subscriptions, and expenses.
• Time & Expense Allocation: Mapping payroll, contractor costs, and reimbursable expenses to projects.
• Bank & Credit Card Reconciliation: Ensuring financial accuracy across all accounts.
• Financial Reporting: P&L by project, firm-wide P&L, cash flow reports.
• Cleanup & Catch-Up Bookkeeping: Fixing misallocated costs or outdated project records.

Architecture Businesses That Use Specialized Bookkeeping

• Small and mid-sized architecture firms
• Residential and commercial design studios
• Multi-partner practices managing multiple concurrent projects
• Firms working on long-term or multi-phase contracts
• Architecture practices collaborating with external consultants and contractors

What are the Benefits of Outsourcing Bookkeeping & Accounting?

• Accurate Financial Records: Fewer errors in billing, reimbursements, and reporting.
• Improved Cash Flow Visibility: Clear tracking of project billing and outstanding receivables.
• Lower Administrative Load: Staff spend less time on accounting tasks.
• Compliance Support: Organized records help with audits and regulatory checks.
• Scalable Support: Services adjust as project volume or firm size changes.

What’s the Cost Comparison: Freelance Bookkeeper vs Managed Accounting Services for Architects vs In-house Bookkeeper?

What are the Essential Skills to Look for in an Accountant for Architects?

• Strong bookkeeping fundamentals and attention to detail
• Experience with project-based accounting and WIP tracking
• Understanding of milestone and percentage-of-completion billing
• Ability to allocate payroll and expenses accurately across projects
• Proficiency with accounting and time-tracking software
• Clear financial reporting and communication skills
• Confidential handling of financial and client data

How to Hire Bookkeeping Support for Architects

1. Freelance Platforms like Fiverr and Upwork
   Pros: Flexible engagement
   Cons: Lacks tool expertise, inconsistency, and no backup support
2. Managed Bookkeeping Services
   Pros: Pre-vetted talent, reliable support, consistent reporting, backups available
   Cons: Not ideal for one-time bookkeeping tasks
3. In-House Hire from Platforms Like Indeed and LinkedIn
   Pros: Site presence
   Cons: Hiring takes weeks, needs training, high cost, and no backup support

What are the Steps to Hire Bookkeeping Services for Architects?

• List financial tasks tied to projects, phases, and billing cycles.
• Identify tools used for accounting and time tracking.
• Choose a hiring model based on project volume and reporting needs.
• Vet for prior experience with architecture or project-based businesses.
• Run a trial using one or two active projects.
• Set reporting cadence for project P&L, WIP, and cash flow.