The Best Bookkeeping for Independent Contractors Last Updated August 2023

bookkeepers for contractors

There are numerous accounting software out there, so this article has come up with a list of the best bookkeeping software for contractors. Having a clear picture of their financial figures will help any independent contractor understand their business better. They will better understand how to charge for their services by understanding their expenses. An independent contractor does not have the ease of having an employer take their taxes out of each paycheck. As a business, you will need to pay taxes and keep up with your bookkeeping as well.

bookkeepers for contractors

They will understand the distinction between a subcontractor and an employee and know the importance of properly handling subcontractors. They will connect every item purchased to the job it was bought for and will ensure that purchase receipts are turned in to them with notes indicating which job it belongs to. We help setup Quickbooks for contractors, and then we perform the bookkeeping every month so they have perfect financials. We’ll help keep track of profitability for every project, and we’ll ensure that you’re monthly financial statements are always ready for lenders, auditors or other oversight. Passageway Financial is a family owned CPA, Tax & Accounting Firm based out of Minnesota, that helps contractors around the nation with their bookkeeping, tax reduction planning, payroll and we serve as a CFO. For instance, setting up Bank Feeds means you can automatically enter banking transactions into your bookkeeping, without needing to spend ages typing everything out.

Jonas Construction Software

Due to the nature of the industry, Giersch Group takes a specialized approach to cleaning up the books. No matter the needs or the size of your company, we have a clear and affordable plan for you. Learn more about the average cost of bookkeeping or schedule your free consultation today. Not only will the construction work suffer from delays and poor planning, but serious issues can arise, such as insufficient tax preparation, which could derail the entire business. These expense categories have a direct impact on the overall project cost evaluation, so it is important to do them correctly.

  • The percentage completion method is best when firms are growing and taking on – or expect to take on – larger and more complex projects over time.
  • We’ll help you keep better records, setup true job costing, pro-actively reduce taxes, and stay on top of your finances.
  • Find out how to tailor bookkeeping to the construction industry and ensure that each job is profitable.
  • You’ll have a dedicated accountant keeping your bookkeeping and accounting in pristine condition.
  • Here are ten tips that can help to simplify and improve the way you handle construction bookkeeping.

Namely, the trinity of construction reports for management are progress invoicing, job costing, and job profitability. Within these reports are significant sub-reports such (e.g. job costs by vendor) which are also extremely helpful for construction managers. A contracting business cannot operate (for very long) without these reports. Incorrect class specifications will not only lead to incorrect books, but potential losses for your client.

Linda Rost’s Better Bookkeepers

As mentioned previously, construction companies are a very specialized industry and most accounting software provides somewhat standardized bookkeeping services. QuickBooks Online is one example of accounting software that automates the bookkeeping process. Project based industries also need to account for potential dry spells in between projects or quick jobs in succession. That means construction companies need to take this into account when determining upfront payments or paying expenses. The length of construction projects make the scheduling and collection of payments a tricky aspect that is very unique to the construction industry. If you’re a contractor who needs back office help, contact SLC Bookkeeping.

If you’re looking for a business accountant in Des Moines Iowa, Drake at Performance Financial is worth connecting with for sure. He has amazing reviews, and stories of helping entrepreneurs, contractors, and agriculture businesses navigate some really tricky financial goals and situations. She helps you develop simple, and inexpensive solutions for your contracting business without spending a ton of time or money. Whether you need help with assessing your profitability, strategic tax planning or strengthening your financial reporting and internal controls, the Giersch Group can help.

Locations & Service Areas

For construction companies seeking a bookkeeper, they will most likely have a spreadsheet that poorly resembles a project job-costing report. As a bookkeeper, you will need to show and demonstrate that there are reporting tools that make spreadsheets obsolete. Not only does it have a user-friendly interface and is easy to use, Navigating Law Firm Bookkeeping: Exploring Industry-Specific Insights but it is also easy to learn. In addition, it can also be connected to your bank account and allows Integration with other accounting software. This makes it easy to transfer data between Quickbooks and other bookkeeping platforms. As such, various software has been created for the purpose of accounting and bookkeeping.

Here are a few bookkeeping tips from the professionals at AppleTree Business Services for construction companies. Every construction industry professional we work with benefits from our layers of expertise in bookkeeping, CFO services and management consulting. Don’t trust just any bookkeeper with your construction or home remodeling financials.

Building a Successful Trade or Contractor Business Faster

Using accounting software like Zero, Wave, or Freshbooks, will allow you to reconcile your bank accounts quickly. Independent contractors need to be thinking of bank account reconciliation. The practice of reconciliation will help you ensure that every transaction matches your accounts. It is best practice to reach out to a CPA for advice when choosing what accounting method will work best for your independent contracting business. As an independent contractor, you have a lot more freedom than employees of most workplaces.

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