On almost every construction project, there’s a familiar tension.
The field says, “We’re way further along than the numbers show.”
Accounting says, “No, you’re not.”
And everyone walks away frustrated.
In this episode of Construction Genius, Eric Anderton is joined by Kathe Barrington, CPA, to explain why this conflict shows up on nearly every job—and why both sides are actually right.
The core issue isn’t effort, accuracy, or competence.
It’s that the field and accounting are measuring two different things.
The field measures physical progress—what’s installed, built, and visible on the jobsite.
Accounting measures financial reporting—what’s been invoiced, received, coded, approved, and recognized.
Those two systems do not run on the same clock.
Kathe explains how timing gaps are created by delayed subcontractor billings, missing supplier invoices, retention, and internal process breakdowns. When costs lag reality, accounting has no choice but to report a job as less complete—even when the work is physically done.
That disconnect doesn’t just create frustration. It creates real business risk:
- Distorted WIP reports
- Underbilling and overbilling
- Cash flow surprises
- Poor decisions while jobs are still active
- An “us versus them” culture between the field and the office
This episode breaks down:
- How percent complete is actually calculated
- Why missing costs are the primary reason WIP becomes unreliable
- How underbilling often hides behind overbilling
- Why delayed month-end close is an early warning sign
- What leadership can do to fix the problem without finger-pointing
The solution is not more rules.
It is shared language, consistent communication, and leadership alignment.
If you want fewer surprises, better cash forecasting, and tighter control over your projects, this episode is required listening.
Key Takeaways
- Why physical progress and financial reporting are both valid—but different
- How timing gaps distort WIP and cash flow
- Where leaders feel the pain first when alignment breaks down
- Why SOPs fail without understanding the “why”
- What healthy alignment between field and accounting actually looks like
This episode is Part 3 of an ongoing Construction Accounting Series focused on helping construction leaders understand their WIP, protect cash flow, and eliminate hidden job losses.
If you haven’t listened yet, start here:
Part 1: WIP Reports Made Simple: The Key to Stopping Hidden Job Losses
https://www.constructiongenius.com/wip-reports-made-simple-the-key-to-stopping-hidden-job-losses-ep.-357
Part 2: How to Use Your WIP to Protect Cash and Grow Profitability
https://www.constructiongenius.com/how-to-use-your-wip-to-protect-cash-and-grow-profitability-ep.-359
Together, these episodes form a practical foundation every construction CEO, project manager, and controller should understand.
Listen or Watch the Episode
Connect with Kathe Barrington
- 🌐 Website: https://www.kbcpa.biz
- 💼 LinkedIn: https://www.linkedin.com/in/kathe-barrington-a6346337/
- 📘 Facebook: https://www.facebook.com/people/Kathe-Barrington-CPA/100072271041746/
👉 More from Construction Genius
- 📘 Get the book Construction Genius: https://www.amazon.com/Construction-Genius-Effective-Hands-Leadership/dp/B0BHTRDY1T/
🧠 Learn about The Shift: Construction Leadership Course
