Trusted by 3,000+ Businesses

RERA 70%-account ready

Accounting for Construction and Real Estate Companies

Reviewed by CA and CS Team, Patron Accounting LLP ICAI & ICSI Registered| 15+ Years Experience| Last Updated: July 2026 Verify Credentials →

Project-wise costing: Every rupee of material, labour and subcontractor cost traced to its tower, wing and unit, not pooled across sites.

RERA 70% account discipline: Collections and withdrawals mapped to the RERA designated account, ready for quarterly engineer, architect and CA certification.

Revenue by stage of completion: Percentage-of-completion revenue under Ind AS 115 / AS 7, with WIP, unbilled revenue and retention tracked per project.

Call +91 945 945 6700 Email Us WhatsApp Us

15+ YearsIndustry Experience

CA & CSCertified Experts

4.9

Based on real Google reviews

Get Free Consultation

Talk to a CA/CS expert today

Full Name

Phone Number

City

Service Needed

Our team will get back to you shortly. No spam.

Real Stories from Real People

Verified Google reviews from founders and businesses Patron works with across India.

Join 3,000+ Builders and Businesses on Patron

Rated 4.9 on Google - trusted for construction & real-estate accounting since 2019.

Talk to an Expert

10,000+Businesses ServedGST compliance and litigation support across India.

15+Years ExperienceDeep expertise in IP registration, GST & business compliance.

50,000+Documents FiledReturns, appeals, and filings handled accurately.

4.9★Client RatingTrusted by entrepreneurs, startups, and growing businesses.

ISO CertifiedProfessional standards and documented processes.

SSL SecureYour financial and business data is fully protected.

Overview What Is It Who Needs It Services Process Calculator Documents Challenges Fees Calendar Benefits Why Patron Comparison FAQs

What Construction and Real Estate Accounting Covers — Scope, Deliverables and Who It Suits

📌 TL;DR - Construction & Real Estate Accounting Services at a Glance

Accounting for a construction company runs project-wise, with every cost traceable to a tower, wing and unit. Revenue recognition follows Ind AS 115 on the basis your project structure actually supports. Patron reconciles the RERA 70% escrow account, maintains the withdrawal certification trail and reports cost-to-complete each month. Appropriate for RERA-registered developers, contractors and joint-development partners.

Your site team stays with the measurement books, the running account bills and the vendor certifications, because nobody at a desk should be signing off work they have not seen. Patron takes the ledger side: coding each bill to its project and cost head, posting retention and mobilisation advances correctly, running each month's close and preparing the budget-versus-actual workings your management reviews before committing further spend. How project funds must be held sets the boundary on the banking side.

Scale here is set by the portfolio: how many registered projects run at once, how many SPVs and joint-development partners sit in the group, and whether contracts are fixed-price or cost-plus with escalation clauses. Real estate accounting services cover the books, the escrow schedules and the reporting pack each month. Returns lodged on the government GST portal and RERA filings themselves are taken on their own terms.

What Is Construction and Real Estate Accounting?

By the year's close, the accounts of a developer must value each tower, wing and unit at true cost, and count revenue only as it is genuinely earned. Accounting for construction company records is the practice that delivers that position. It ties every supplier bill to a project and cost head, and keeps retention and mobilisation advances posted correctly.

The engagement also measures how far each project has progressed, matching recognised revenue to the work completed rather than to the cash a buyer has paid in. Construction accounting services maintain the project ledgers alongside the schedules for buyer money held in a designated bank account, and report the cost still to be spent. Where a plot is built under a shared arrangement between landowner and builder, the books keep each side's entitlement separate. Accounting for construction company work is confined to the ledger; the statutory GST and income-tax filings sit with their own teams.

POCM under Ind AS 115 / AS 7. Construction contracts recognise revenue by percentage of completion - cost incurred to date over total estimated cost - not on handover. Patron measures each project against its engineer-certified stage, so revenue, WIP and unbilled amounts move with real progress and survive audit.

Key Terms for Construction & Real Estate Accounting:

Percentage of Completion Method (POCM)Recognises project revenue in proportion to how much of the work is finished.
RERA 70% Escrow ComplianceRule requiring seventy per cent of buyer money to stay in a designated project account.
Joint Development Agreement (JDA)Contract where a landowner and builder share a project's revenue or built area.

What Is Construction and Real Estate Accounting. By the year's close, the accounts of a developer must value each

Who Needs Construction and Real Estate Accounting in India?

Accounting for a construction company becomes unavoidable the moment a project is registered under RERA and buyer money starts flowing through a designated account. It suits developers, civil contractors and joint-development partners whose books must run project by project, not as one pooled ledger.

RERA-registered residential developers who have just opened a designated project account and must certify every withdrawal from it.
Civil contractors billing employers on running account certificates, waiting months on retention held back from each bill.
Promoters running several registered projects at once, each needing its own phase-wise WIP costing.
Partners in joint development arrangements sharing land, cost and overheads across a group of SPVs.
Builders who pre-sell flats and take booking advances long before a tower is ready to hand over.
Real estate firms drawing a sanctioned project loan in tranches tied to each construction stage.
Contractors engaging large site labour and subcontractor gangs whose payments carry deduction at source.

Our Construction and Real Estate Accounting Services

Service	What We Do
Project cost sheet and WIP accounting	Land, approvals, materials, labour and finance cost captured into a project-wise cost sheet and work-in-progress statement for every site Monthly
Percentage of completion revenue reporting	Revenue recognised on stage of completion against the engineer's certificate and budgeted cost, so recognised income survives later budget revisions Quarterly
RERA designated account monitoring	The 70% designated account tracked against project withdrawals under the RERA 70% escrow rule, with schedules ready for the Form 3 certificate Quarterly
Running account bills and retention	Running account bills raised on employers and retention money tracked with release dates, giving construction accounting services that hold receivables tight On event / as needed
Customer collections and advance tracking	Milestone collections reconciled against the payment schedule and unadjusted advances kept out of revenue, supporting real estate accounting services for developers Monthly
Monthly close for construction company	Full accounting for construction company each month covering project ledgers, loan drawdowns, contractor deductions and management accounts across all sites Monthly

Our Process

How Construction and Real Estate Accounting Works — Our Process

How project costs become books you can defend, step by step from the project cost sheet to loan-drawdown tracking.

Step 1

Building the project cost sheet

Each project is run as its own cost centre: land and approvals, materials, labour, subcontract, site overheads and finance cost, all kept apart from corporate expenses. Shared costs are allocated on a basis we agree once and apply consistently.

Step 2

Measuring stage of completion

Cost incurred to date is set against the latest budgeted total project cost and cross-checked to the architect's or engineer's completion certificate. Where the budget has been revised, the effect on revenue already recognised is worked out and disclosed.

Step 3

RERA designated account discipline

Collections from allottees are split so that the prescribed share reaches the designated project account, and withdrawals are supported by the engineer, architect and chartered accountant certification the Act requires. The account statement is reconciled to the certified position.

Step 4

RA bills and retention tracking

Running account bills are tied back to measurement book abstracts and to what the employer actually certified, so the difference between billed and certified is visible. Retention and security deposits are held as receivable with their release dates.

Step 5

Collections against milestone schedule

Each allottee's payment schedule is compared to what has actually been demanded and received, so overdue milestones and unbilled construction stages surface. Amounts collected ahead of the stage they relate to are carried forward, not taken to revenue.

Step 6

Site labour and contractor deduction

The site muster and contract-labour register are reconciled to the payroll and to provident fund and insurance challans, including labour engaged through contractors. Payments to work contractors are put through the contract deduction provision.

Step 7

Project loan drawdown tracking

Drawdowns are traced against the sanctioned purpose and the cost heads they funded, and interest servicing is recorded project by project. This keeps the lender's end-use position and the project cost sheet telling the same story.

Free interactive tool · Ind AS 116

Convert a Site or Office Lease into an Ind AS 116 ROU Asset

Site cabins, plant, equipment and office leases running beyond 12 months sit on your balance sheet under Ind AS 116. Enter your lease terms below to compute the Right-of-Use asset, lease liability, the year-wise amortisation schedule and the journal entries.

Lease Accounting Calculator (Ind AS 116) Open full tool ↗

Enter your lease terms below. The calculator builds the present value of lease payments at your discount rate (IBR), constructs the amortization schedule period-by-period, and aggregates to year-wise output with journal entries.

Lease Terms

Lease Term (Years) Whole years from 1 to 30. For periods less than 12 months, the short-term exemption may apply.

Discount Rate (Annual %) Lessee's Incremental Borrowing Rate (IBR) — e.g., 8-12% for Indian corporates.

Payment Frequency

Lease Payment per Period (₹) Fixed payment amount in ₹ for the chosen frequency.

Payment Timing

Most operating leases are in arrears (rent at end of period).

Annual Escalation (%) — Optional Compound % increase applied each year (e.g., 5% step-up). Leave 0 if fixed.

Advance Payment / Prepayment (₹) — Optional Non-refundable lease payments before commencement (capitalised in ROU).

Initial Direct Costs (₹) — Optional Brokerage, legal fees, registration directly attributable to the lease.

Lease Incentives Received (₹) — Optional Cash or rent-free period value received from lessor (reduces ROU).

Restoration / Dismantling Cost — PV (₹) — Optional Present value of estimated end-of-lease restoration obligation under Ind AS 37.

Initial Recognition (Day 1)

Right-of-Use Asset & Lease Liability

Lease Liability

₹0

ROU Asset

₹0

Calculation Basis

Year-wise Amortization Schedule

Aggregated annual view. Period-level computation uses your selected frequency internally.

Year	Op. Liability	Lease Payment	Interest	Cl. Liability	ROU Dep.	Cl. ROU

Ind AS 116 vs Old AS 17 (Operating Lease)

Total cash outflow is identical. The expense pattern differs significantly — Ind AS 116 is front-loaded due to constant interest on a reducing liability.

Journal Entry — At Commencement

Journal Entry — Year 1 End

Open the full calculator ↗

Estimates only, computed in your browser — not a substitute for a signed valuation or auditor sign-off.

Documents Required for Construction and Real Estate Accounting

Project accounting turns on cost incurred against cost expected, so the work-in-progress statement and the current budget revision come before anything else.

Project-wise cost sheet / work-in-progress statement (land, approvals, materials, labour, overheads, finance cost)
Budgeted total project cost with the latest revision and the architect's / engineer's stage-of-completion certificate
Agreements for sale / allotment letters with the payment-milestone schedule and the customer collection register
RERA designated (70%) separate account statements, plus the chartered accountant's Form 3 certificate supporting each withdrawal
Running Account (RA) bills / interim payment certificates raised on the employer, with measurement-book abstracts
Retention money and security deposit / bank guarantee register with release dates
Sales invoice register, purchase bills and bank statements for all project and corporate accounts
Project loan sanction letters, drawdown and interest statements
Payroll register with site-staff and contract-labour muster, PF/ESI challans

Client Portal

How You Work With Patron

Everything happens in one secure login. You can see your active services, the Patron team on your account, and anything still pending. Once you raise a request, it moves through the same clear steps every time, so you always know exactly where your work stands.

Sign in securely

Your books, documents and requests all sit behind one private, password protected login. The team handling your account is shown on screen, so nothing sensitive ever needs to travel over email or WhatsApp.

Service catalogue inside the client portal

Raise your request

Choose the service you need from the menu inside the portal, where the price is shown before you go ahead. Your request is logged the moment you send it, with no phone calls or reminder emails to wait on.

GST registration document checklist in the client portal, with an upload button beside each item

Share what the service asks for

For every service, the portal lists the exact documents it needs, each with its own upload button. The example shown here is the GST registration checklist. When a service needs nothing from you, it simply asks for nothing.

Live request tracker inside the client portal

We review, prepare and file

Once your documents are in, your team checks them, prepares the work and files it for you. A live tracker shows each stage as it happens, from review to processing to done, so you never have to ask where things stand.

Collect your finished work

Every completed return, computation and certificate is placed in your Deliverables area. You can open, print or download any of them as a PDF whenever you need a copy.

Common Construction and Real Estate Accounting Challenges and How We Solve Them

Challenge	Impact	How Patron Accounting Solves It
Land and JDA cost not apportioned across saleable units	Unit-level cost comes out wrong, so pricing and profit per flat are miscalculated from the start.	We apportion land and joint development agreement cost per saleable area for each unit.
Customer advances parked as income instead of liability	Booked revenue outpaces construction progress, overstating profit and distorting the project result for the period.	We hold advances as liabilities and release them to revenue only against certified progress.
Retention and mobilisation advances unreconciled with contractors	Vendor balances drift, so final running-account bill settlements throw up disputed sums.	Patron reconciles retention and running-account bills to each contractor ledger every month.
Input credit on under-construction and completed sales not split	Blocked ITC on completed-property sales is claimed by mistake, inviting reversal with interest.	We split input credit between under-construction and completed inventory according to the sale stage.
Unsold inventory carried at cost after project completion	Overvalued closing stock hides a fall in net realisable value and overstates the asset base.	Our team tests completed unsold units against realisable value and provisions any shortfall.

Construction and Real Estate Accounting Fees

Fee Component	Amount
Starter — one entity running a single project ledger	INR 3,499 Excl. GST & Government Charges
Growth — several active projects with phase-wise WIP tracking	On quote
Managed — multiple entities or sites with custom project reporting	On quote

At INR 3,499 the entry tier keeps books for one entity on a single project ledger. Fees move with the number of active projects and how deeply you track WIP, which our note on phase-wise WIP costing unpacks. Accounting for a construction company is quoted by project load. Get a scope-based quotation on +91 94594 56700.

Fees exclude GST and government charges. Final quote confirmed after a scoping review.

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

Professional accounting and compliance charges are scoped to your number of entities, funding stage and monthly transaction volume, and are separate from statutory and government charges. Contact us for a detailed, fixed quote.

Get a free Construction & Real Estate Accounting consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

Construction and Real Estate Accounting Compliance Calendar 2026

Compliance	Due Date	Applies To
TDS / TCS deposit (Challan ITNS-281)	7th of every month (30 April for March)	Every business that deducts tax at source on salaries, rent, contractor or professional fees
GSTR-1 (outward supplies)	11th of every month for monthly filers	GST-registered businesses filing monthly returns
GSTR-3B (summary return and tax payment)	20th of every month for monthly filers	GST-registered businesses filing monthly; QRMP filers pay via PMT-06
Advance tax first instalment (15%)	15 June 2026	Companies, firms and individuals with a tax liability of Rs 10,000 or more
Tax audit report (Form 3CA/3CB-3CD)	30 September 2026	Businesses crossing the Section 44AB turnover threshold
Income-tax return, audit cases	31 October 2026	Companies and audit-liable firms
Financial statements filing (Form AOC-4)	Within 30 days of the AGM (by 29 October 2026 for a 30 September AGM)	Companies filing audited financials with the ROC
Annual GST return GSTR-9 and reconciliation GSTR-9C	31 December 2026	GST-registered businesses above the annual-return and audit thresholds

For a builder the tax audit on 30 September and the AOC-4 by 29 October anchor the year, over a monthly GSTR-3B on the 20th. Project revenue needs a percentage-completion cut-off, with RA (running account) bills and work-in-progress tracked. Patron ties construction accounting to each date so works-contract GST and RERA reporting stay in step. Get a filing-reminder schedule set up; call +91 94594 56700.

Key Benefits

Why Professional Construction and Real Estate Accounting Matters

Revenue the employer has accepted

You report income on a contract at the value the employer has accepted. Whatever is still under argument is carried as a figure you know.

RA bills tied to measurement book abstracts and employer certification
income reported at the value the employer has accepted
Without it, the unaccepted portion returns as an unexplained receivable

Retention money with release dates

You hold retention and security deposits as receivables, each carrying its release date, with bank guarantees tracked alongside.

retention and security deposit register with release dates
bank guarantees tracked alongside each receivable
Without it, released retention nobody claims because nobody knows it exists

Advance collections kept out of revenue

We carry forward money taken from allottees ahead of the construction stage it relates to, rather than show it as earned.

amounts collected ahead of their stage carried forward, not to revenue
profit shown only against work already built
Without it, decisions taken on profit not yet earned

Cost separated project by project

Land, approvals, materials, labour, subcontract, site overheads and finance cost are held per project, with shared costs on one agreed basis.

each project run as its own cost centre
shared costs allocated on one agreed basis
Without it, a weak project masked by a strong one

Revenue that survives budget change

A revised cost estimate on a tower flows through to income already reported, so the stage you recognise against stays current.

budget revision flowed through to revenue already recognised
stage of completion measured against the current estimate
Without it, several years of correction land in one year

Contract labour evidenced in your records

Workers on your sites who sit on a contractor's rolls are still counted, costed and evidenced in your own records.

site muster and contract-labour register reconciled to payroll
reconciled to PF and ESI challans paid
Without it, principal employer liability for a contractor's unpaid dues

Why Businesses Choose Patron Accounting for Construction & Real Estate Accounting

Five things a builder or developer can check before handing over the project ledgers. Each is a claim with the proof behind it.

Project-wise books tracing cost to tower and unit

With 15+ years across 3,000+ businesses, we keep project-wise books where every cost ties to a specific tower, wing and unit, so profitability is read one project at a time.

RERA 70% escrow reconciliation and withdrawal certification

We reconcile the RERA 70% designated account and maintain the withdrawal certification trail, part of the 25,000+ filings completed, so each drawdown is evidenced before it is made.

Project accounting configured for percentage-of-completion reporting

Your existing platform stays in place, whether Zoho Books, Xero, Tally Prime or Odoo, configuring project accounting so percentage-of-completion revenue and WIP report from your own ledger.

Project cost-to-complete and escrow statement every month

Every month we produce a project cost-to-complete and escrow statement, with phase-wise WIP costing behind it, the reporting cadence behind our 25,000+ filings and 4.9 star Google rating.

RERA-registered developers among 3,000+ businesses served

RERA-registered developers and contractors sit among the 3,000+ businesses we serve under our accounting and bookkeeping services. Our in-house team of CAs and CS, with 15+ years of experience, handles them, reflected in our 4.9 star Google rating.

Figures reflect Patron Accounting LLP engagements since 2019. Scope and turnaround are confirmed in your engagement letter.

Case Study: Untangling a Two-Tower RERA Project

A mid-sized residential developer in Pune - two RERA-registered towers, ~180 units, books maintained in Tally

The situation

Costs were pooled across both towers, so nobody could say which one was in profit. Running-account bill retention was untracked, the RERA 70% designated account had drifted from the ledger, and the auditor had flagged revenue booked ahead of the certified stage of completion.

What we did

Rebuilt the chart of accounts so every cost carries a tower, wing and unit tag.
Reconstructed the RERA 70% designated account and tied every collection and withdrawal back to the ledger.
Re-cut revenue on percentage of completion under Ind AS 115 / AS 7, against the engineer-certified stage.
Set up a retention and RA-bill register with release dates, and put Section 194C TDS on a monthly cadence.

The result

Tower-wise margins visible for the first time; 100% of the RERA 70% account reconciled to the books

Within two monthly close cycles the developer could read profit per tower, the auditor accepted the revised revenue recognition without a qualification, and the quarterly RERA certification went through on the first submission.

Percentage of Completion vs Completed Contract

Criterion	Percentage of Completion	Completed Contract
What it is	Revenue recognised progressively as the project is built, tracking cost or physical progress.	Revenue recognised only when the project or unit is complete and control passes.
When permitted	Required under AS 7 for construction contracts, and Ind AS 115 when over-time criteria are met.	Applies only where control transfers at a single point in time.
Profit reporting	Profit emerges each period, smoothing earnings across the build.	Profit lands in one period, causing lumpy and delayed results.
Estimates and risk	Depends on reliable cost-to-complete estimates that must be revisited each period.	Avoids estimation, but overstates WIP and hides margin until handover.
MIS and stakeholders	Gives lenders and RERA reviewers a live view of project progress.	Offers little interim insight, which weakens project monitoring.
Advances and escrow	Buyer advances stay a liability until the related progress is earned.	All collections sit as advances until completion, inflating liabilities.
Verdict	The standard decides, not preference. Construction contracts follow percentage of completion under AS 7 and Ind AS 115; completed contract applies only where control passes once. Accounting for construction company treats POC as the norm. See phase-wise WIP costing.

Legal and Regulatory Framework for Construction and Real Estate Accounting

The record a developer's statute demands is a project-level account that ties every rupee collected to the construction it funded, and the Real Estate (Regulation and Development) Act 2016 is what forces that account into being. Around it, the revenue standard decides when a sale becomes income and the tax law decides the value a unit is taxed at.

These pull in different directions, so the books have to serve all three at once. Buyer money is ring-fenced before it can be recognised as revenue, and a unit sold below its stamp-duty value is still taxed on that value. That is why RERA 70% Escrow Compliance governs the cash and why a Joint Development Agreement (JDA) needs its own accounting treatment. Accounting for construction company records answers to the provisions below.

Real Estate (Regulation and Development) Act 201670% of buyer collections sit in a designated RERA escrow account and are drawn only against certified construction cost.
Ind AS 115 / AS 7Revenue is recognised over time as performance obligations are met, replacing the older Percentage of Completion Method (POCM) for Ind AS reporters. AS reporters apply ICAI's Guidance Note on Accounting for Real Estate Transactions (revised 2012).
Notification 03/2019-Central Tax (Rate)Under-construction residential sales are taxed at 1% for affordable housing or 5% otherwise, without input tax credit and subject to the 80% inward-supply condition.
Sections 43CA and 50C, Income-tax Act 1961Where a sale price falls below the stamp-duty value beyond the safe harbour, the stamp value is deemed the consideration for tax.
Section 128, Companies Act 2013The books stay on accrual and double entry at the registered office, retained for eight years across the length of a project.
Rule 3(1), Companies (Accounts) Rules 2014The audit trail is enabled, so a cost-to-complete revision or a unit re-pricing is logged. General filing runs from the hub page.

Practical note: During a RERA or tax review, the escrow withdrawals are reconciled to certified construction cost, and a drawdown ahead of certification is the usual flag.

Official sources: Ministry of Corporate Affairs · Income Tax Department · GST Portal · MahaRERA

What type of accounting is used in construction?

Construction uses project based accrual accounting, where every contract is a separate cost centre and revenue is recognised by stage of completion rather than when money is received. Work in progress, retention money, mobilisation advances and running account bills are tracked contract by contract. Companies reporting under Ind AS apply Ind AS 115, and companies on AS follow AS 7 for contract revenue.

How do you keep project wise books for multiple sites?

Each site is set up as a separate cost centre in Tally, Zoho Books or your ERP, so material, labour, subcontractor and overhead costs are tagged at the point of entry. You receive a project wise cost to date, billed to date and margin statement every month, and the consolidated accounts are built from those without any manual regrouping at year end.

How do you handle RERA reporting and project escrow account tracking?

For RERA registered projects the designated project bank account is tracked separately, with collections from allottees mapped into it and withdrawals monitored against the certification requirement set by the regulator. Books are kept project wise so the periodic disclosures and the certificates your CA, architect and engineer must sign can be produced from the ledgers without reconstruction.

What is construction accounting?

Construction accounting tracks cost and revenue by individual project instead of only at company level, because every site carries its own budget, billing cycle and margin. It covers work in progress valuation, subcontractor bills, retention money, material issued from stores, plant and machinery cost and GST on works contracts. Ordinary financial accounting closes a clean trial balance but cannot tell you which site is losing money.

What is the role of an accountant in real estate?

A real estate accountant keeps project wise books for a developer, covering land and approval cost capitalisation, collections from allottees, movement in the RERA designated project bank account, GST on bookings, TDS on contractor and professional payments, and revenue recognition on handover of units. The role also produces the ledgers behind periodic RERA disclosures and the schedules a statutory auditor tests at year end.

How do you track subcontractor bills, retention money and TDS?

Subcontractor bills are booked against the project cost centre with the measurement sheet reference, retention money is parked in a separate liability account and released only when the defect liability period ends, and TDS is deducted at the applicable contractor rate and deposited monthly. Mobilisation advances are tracked and recovered proportionately across running account bills.

What GST issues arise for real estate developers and how do you manage them?

Developers face input tax credit restrictions on residential projects, reverse charge where procurement from registered suppliers falls short, and different treatment for units sold before and after completion. We compute the tax on each booking correctly, prepare the credit reversal working where units are sold after the completion certificate, and reconcile collections against the returns filed every month.

What does construction and real estate accounting cost per month?

Construction and real estate accounting generally costs Rs 20,000 to Rs 75,000 a month. Pricing follows the count of active projects, sites and GST registrations, not turnover, so a single project developer sits near the lower end. RERA reporting support, escrow reconciliation and year end finalisation are quoted separately once we have seen the project structure.

Can you take over part completed project books in the middle of a year?

Yes, mid year takeover of part completed project books is routine and we normally go live within 15 working days. Work starts from the last reconciled trial balance, project wise cost cards are rebuilt from purchase and subcontractor records, collections are reconciled with the project account, and you get a written list of unrecorded items before routine processing begins.

How are land, approval and development costs carried in the books?

Land cost, approval and sanction fees, development expenses, eligible borrowing costs and site overheads are accumulated as project inventory and released to the profit and loss account as revenue is recognised. Costs are allocated across towers or phases on a defensible basis such as saleable area, and the allocation working is documented so your auditor can test it.

Quick Answers

A construction accountant maintains project-wise cost ledgers, recognises revenue by percentage of completion under Ind AS 115 / AS 7, runs the RERA 70% designated-account discipline, tracks retention and RA bills, and deducts Section 194C TDS on contractors for builders and real-estate developers.

Construction & Real Estate Deadlines You Cannot Afford to Miss

Two things drive a builder's month: the Section 194C contractor TDS deposit by the 7th and keeping the RERA designated (70%) account reconciled for its quarterly certification. Miss the RERA certification and withdrawals stall on site; miss the TDS and interest runs at 1.5% a month. Patron closes project books and reconciles the 70% account before each deadline. Call +91 94594 56700 to set up a filing-reminder schedule.

Start Your Construction and Real Estate Accounting with Patron Accounting

Ledgers at a developer often flatter the position: unsold inventory carried at cost, land advances parked as receivables, and bookings counted well before anything is earned. Disciplined accounting for construction company records closes that distance, so the surplus your management committee reads at each quarter end is the surplus your towers have genuinely produced.

What RERA accounting produces is a margin per sold unit and the cash uncommitted after obligations already contracted for. Those two numbers decide whether the next land parcel is bought this year, whether a slab cycle is accelerated, and what price the remaining inventory can hold without discounting.

Until the registration certificates are settled, nothing else moves: how many projects are live under which promoter entity, which are joint development arrangements, and how overheads shared across SPVs land. Those boundaries shape the ledger, much as they do in our work with software businesses.

📞 Call +91 945 945 6700 💬 WhatsApp Us ✉️ Email Us

Book a Free Consultation - No Obligation.

Explore Our Accounting Services

Related services our CA-led team delivers for builders and developers across India.

Related Services

End-to-end support for builders and developers

All Industries

Compliance for Construction

ITR for Construction Firms

Lease Calculator (Ind AS 116)

Building or developing property & need project-wise, RERA-ready books? Talk to our CA team. Get Free Construction Quote →

Reviewed by the CA & CS Team, Patron Accounting LLP

ICAI & ICSI registered · 15+ years in Indian accounting & compliance · Last reviewed 23 July 2026 · Next review 23 October 2026

Official sources: MCA Income Tax Department GST Portal MahaRERA