QuickBooks says you billed £400k. It can't tell you the Middlesbrough renewables job is £90k underwater with retentions in a spreadsheet.
Custom accounting software, or a custom layer over Xero or QuickBooks, for a Middlesbrough engineering or renewables firm typically costs £30k to £110k and ships in 3 to 6 months. QuickBooks, Xero and FreshBooks do invoicing and the GL well, but they go blank on the accounting that decides whether a Teesside EPC firm is actually profitable: work in progress, retentions, stage-payment applications and contract revenue recognition.
QuickBooks tells you what you invoiced. It does not tell you that a half-finished renewables EPC contract is underwater because the costs incurred outrun the certified value, with retentions held and a variation unapproved. That picture, work in progress and cost-to-complete, lives in a quantity surveyor's spreadsheet, and the accounts and the spreadsheet only meet at year-end.
So your management accounts flatter you mid-contract and shock you at completion. Revenue recognition on long contracts, retention tracking and applications for payment are exactly where Xero stops and the spreadsheet starts, which means your most important numbers are the least controlled.
The problems nobody warns you about
- QuickBooks and Xero can't track WIP and cost-to-complete on long EPC contracts, so mid-job profit is guesswork
- Retentions held and released aren't managed in the ledger, so cash forecasting is off
- Stage-payment applications and certified values live in spreadsheets, not the accounts
- Contract revenue recognition over time isn't supported, so management accounts mislead mid-contract
The case for owning your accounting
A custom accounting layer brings contract accounting into the system: WIP and cost-to-complete per job, retentions tracked through to release, applications for payment, and revenue recognised over the life of a contract. Your management accounts tell the truth mid-job instead of flattering you until completion.
Budgeting a accounting build in Middlesbrough
| Project scope | Typical cost | Timeline |
|---|---|---|
| Custom contract-accounting add-on over Xero | £20k to £45k | 2 to 3 months |
| Custom WIP, retention and recognition layer | £45k to £80k | 3 to 5 months |
| Full contract accounting integrated with ERP (Enterprise Resource Planning) | £80k to £110k | 5 to 6 months |
What your build should include
What we build under accounting in Middlesbrough
Everything an accounting build here can cover: bookkeeping software, financial reporting, accounts payable automation, accounts receivable, general ledger and expense management.
Exactly what you get
Accounting that tells the truth mid-contract. WIP and cost-to-complete per job so you know a renewables EPC contract is underwater before completion, not after. Retentions tracked from held to released so cash forecasting is real. Applications for payment and certified values inside the accounts instead of a QS spreadsheet, and revenue recognised over the contract life so management accounts stop flattering you. Statutory accounts and VAT stay in Xero or QuickBooks, integrated cleanly.
How to choose a developer in Middlesbrough
Hire a partner who can talk contract accounting fluently and who involves a real accountant in the design. Ask them to explain WIP, retention release and revenue recognition; if they fumble it, they'll build the wrong rules. Expect them to keep statutory accounts and VAT in your compliant package and integrate, not replace. The strongest teams connect contract accounting to your ERP software, project management software and business intelligence dashboards so one set of numbers drives the business.
- !They don't know what WIP or retention release means. Ask them to explain cost-to-complete
- !They propose replacing your statutory accounts package. Ask why not integrate
- !No accountant involved in the design. Ask who validates recognition rules
- !No ERP or Xero integration plan. Ask how statutory accounts stay clean
- !No contract-accounting reference. Ask for a WIP or retention build
If accounting is on the roadmap, warehouse management, field service management, erp usually follow within the year. Budget them as one conversation.
Rohan advises mid-market and enterprise teams on ERP, CRM and custom software, and has led delivery on dozens of business-software builds.
Writes for Digital Heroes, shipping business software for 2,000+ brands across 55+ countries since 2017.
Frequently asked questions
Why can't QuickBooks or Xero handle our contracts?
Because they're built for invoicing and the general ledger, not for work in progress, retentions and revenue recognition on long EPC contracts. For a Middlesbrough engineering or renewables firm, those are the numbers that decide real profitability, and they end up in a QS spreadsheet that only meets the accounts at year-end.
Should we replace Xero entirely?
Usually not. Statutory accounts, VAT and the GL are well handled and heavily regulated, so keep them in Xero or QuickBooks and build a contract-accounting layer on top that integrates. Replacing a compliant accounting package wholesale adds risk and cost for no gain. Build custom only where contract accounting outruns the package.
How does this improve our cash forecasting?
By bringing retentions and applications for payment into the system. When the software knows how much retention is held against each contract and when it's due for release, your cash forecast reflects reality instead of a manual estimate. For firms with large retention balances, that visibility alone often justifies the build.