Guides · August 4, 2026 · 8 min read
Bookkeeping for Contractors: A Simple Guide
By BusiB
Contractor bookkeeping has to serve two views at once: the health of the company and the performance of individual jobs. Recording materials as a general expense is not enough if you cannot tell which project used them.
A simple process starts at the jobsite, keeps business funds distinct, and closes the loop with a short weekly and monthly review.
Set up the financial foundation
Use dedicated business accounts, consistent customer and job names, and a category list that reflects the work. Document how deposits, progress billings, retainage, change orders, and reimbursements will enter the books.
Capture costs from the field
Save receipts before they reach the truck floor. Add the job and purpose at the same time. For a mixed supply-house purchase, split the items between jobs and company overhead rather than assigning the full receipt to whichever project comes to mind.
Separate direct job costs from overhead
Materials and subcontractor labor tied to a project are different from insurance, office software, or general vehicle costs. Consistent separation supports job review and company-wide planning. Classification details depend on your facts and may need professional guidance.
Create a manageable review rhythm
Weekly, resolve missing job assignments and compare bills with field records. Monthly, reconcile accounts, review unpaid customer invoices and vendor bills, and compare each active job with its estimate and approved changes.
Put your books on the touch-it-once system.
BusiB is AI-powered bookkeeping: snap the receipt or tell Bea what a charge was for, and your books stay current.
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