Separate cost of goods sold from overhead
Direct job costs, such as field labor, materials, subs, equipment rental and permits, belong in cost of goods sold (sometimes called cost of revenue). Overhead belongs in operating expenses. When the two are mixed, the gross margin on your profit and loss statement stops meaning much.
Keep it simple enough to use
Too few accounts hide useful detail. Too many lead to inconsistent coding. Many trade businesses do well with a handful of direct-cost accounts and use jobs, classes or service lines in their software for the extra detail.
Track revenue by type of work
If you run service calls and project work, or installs and maintenance, separate revenue accounts or classes let you compare how each one performs.
Balance-sheet items contractors need
Customer deposits, retainage receivable and payable, and equipment and vehicle loans each deserve their own accounts, so the balance sheet reflects what you actually owe and are owed.
Setting up or reorganizing a chart of accounts can be part of onboarding or cleanup.
This guide is general information, not tax, legal or accounting advice for your specific situation.