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Accounting for construction and contractors
General contractors, roofers, electricians, plumbers, painters and remodelers, with the books kept job by job.
Why contractors need job costing
A contractor can be busy all year and still lose money if two or three jobs went over. Job costing assigns every invoice, every hour of labor and every subcontractor payment to the job it belongs to, so you know each project’s margin while it is still running, and you can bid the next one from real numbers.
Florida treats construction differently from other industries. Workers’ compensation is required from the first employee, and corporate officers count unless they file an exemption. Subcontractors must receive 1099-NEC forms, and general contractors and property owners will ask for a certificate of insurance before you can start.
Materials have their own sales tax rules: contractors generally pay Florida sales tax when they buy materials for a real property contract, rather than charging it to the customer. Getting that wrong leads to either overpaying or an assessment.
What we handle
- Job costing and monthly bookkeeping in QuickBooks
- Payroll for crews and 1099-NEC forms for subcontractors
- Tax returns and quarterly estimates for the company and the owner
- Workers’ compensation, general liability and commercial auto quotes
- Certificates of insurance, requested from your carrier
- Entity setup, and the S corporation election when it saves tax
“I highly recommend Juliet and her assistant Antonella! From the moment I walked into the office, they made me feel welcomed and supported. They were extremely attentive and always available to answer any questions I had…”
Questions we hear from this industry
I only have one employee. Do I need workers’ comp?
In construction, yes. Florida requires coverage from the first employee, and officers of the corporation count as employees unless they file an exemption with the state.
Should my workers be employees or 1099 contractors?
It depends on how the work is controlled, not on what is convenient. Misclassifying employees as contractors creates payroll tax and workers’ comp liability. We go through the facts with you and set up payroll or 1099s accordingly.
What does job costing give me that a normal P&L doesn’t?
A profit and loss statement shows the company’s total. Job costing shows each project’s revenue, materials, labor and subcontractors, so you see which jobs made money and which bids were too low.
Do I charge sales tax on my work?
For most real property contracts in Florida, no. The contractor pays sales tax on the materials when buying them and does not charge tax to the customer. Some contracts, such as retail sale plus installation, work differently, so we check how your contracts are written.
Tell us what you do
Book a free 15-minute consultation online, or call us today. In person or remote, in English or Spanish.