Why contractor books need a different setup
A retail store sells a product and collects payment the same day. A contractor might take a deposit, buy materials, pay a crew for three weeks, bill in stages, absorb a change order and wait on final payment. If the books don’t reflect that rhythm, the monthly profit and loss statement can look healthy one month and alarming the next, without telling you much about either.
Good contractor bookkeeping separates direct job costs from overhead, records deposits and progress billings consistently, and keeps customer and vendor balances current, so the statements mean something.
What monthly bookkeeping includes
- Transactions categorized in a chart of accounts set up for contracting work
- Bank and credit card accounts reconciled each month
- A monthly profit and loss statement and balance sheet
- A quarterly financial review, or monthly in higher packages
- Routine questions about the monthly books
Where it fits
Monthly bookkeeping is included in every package, starting with Financial Foundation. If your books are behind, cleanup and onboarding come first so monthly work starts from reliable numbers.
Common questions
When are the books closed each month?
On a schedule agreed in your proposal, once we receive complete information such as statements, receipts and job data.