We pay permit fees upfront to keep projects moving and bill the client for them later. With permits spread across several projects, tracking which fees had been billed and which were still pending got messy. One month we missed several smaller permit fees across three projects, more than $5,000 we never invoiced.
As a general contractor running multiple projects, permit fees are a recurring headache.
The problem: permit fees falling through the cracks
We found the $5,000 gap while reconciling the books. Without clear documentation, we were leaving money on the table, and that hit cash flow, because with several projects running at once we couldn't afford to be late requesting reimbursement.
It wasn't a one-off. Missing a few permit fees every month added up, built a backlog of unpaid reimbursements, and sent the accounting team combing through invoices, project records, and client correspondence to make sure nothing was missed. The delayed client payments made it harder to cover ongoing project expenses. We were always in reactive mode.
The fix: link every permit fee to a client invoice
APARBooks changed how we handle permit fee reimbursements. We add each permit fee as a project expense and link it directly to a client invoice, with everything organized in one place. We can see which fees have been reimbursed and which are still outstanding.
Clear, current documentation means we don't miss payments anymore, and we can pull up the records whenever we need to verify or remind a client of a pending reimbursement.
Frequently Asked Questions
Why do contractors lose money on permit fee reimbursements?
Permit fees are paid upfront and billed to the client later. Across several projects with many permits, it's easy to lose track of which fees have been invoiced. Unbilled fees add up, in one case more than $5,000 in a single month, and strain cash flow.
How does APARBooks track permit fee reimbursements?
Each permit fee is entered as a project expense and linked directly to a client invoice. APARBooks shows which fees have been reimbursed and which are still outstanding, with the documentation on hand to remind clients of pending reimbursements.
Built for Contractors. Built for Construction Accounting.
APARBooks is purpose-built construction accounting software for general contractors and bookkeepers. Manage job costing, AIA progress billing, subcontractor payments, retainage, change orders, lien compliance, and WIP reporting in one place.
