Bookkeeping for Contractors & Construction in Arizona

Contractors can have a great year in the bank account and still lose money on half their jobs. The problem is usually the books: materials, labor and subs all land in one big expense bucket, so nobody can see which jobs, crews or job types are profitable.

We set up QuickBooks Online around your jobs, not just your bank account. General contractors, remodelers, roofers, HVAC, plumbing, electrical, landscaping and pool companies all get the same thing from us: clean monthly books and a clear picture of what each job made.

What we handle for contractors and construction

• Job costing by project, with materials, labor and subcontractors tracked to each job
• Progress billing, deposits and retainage receivable and payable
• Collecting W-9s and filing 1099-NEC forms for subcontractors
• Tracking vehicles, equipment and loans so depreciation and interest are right
• Separating MRRA work from new-construction work for sales tax
• Payroll for field crews, including certified payroll support when a job requires it

Arizona tax notes

Arizona taxes construction differently from most states. On new construction and other “modification” work, a prime contractor pays transaction privilege tax (TPT) on 65% of the gross receipts from the job. Maintenance, repair, replacement and alteration (MRRA) work generally isn't taxed that way; instead you pay tax on the materials when you buy them.

If your crews do both kinds of work, every invoice has to be classified correctly or you'll over- or under-pay. We tag each job as MRRA or modification in QuickBooks so your TPT returns match your invoices, and we work alongside your CPA on anything that needs a tax opinion.

More than bookkeeping: insight you can use

We're more than a bookkeeper who keeps your books current. Every month we look at your numbers and tell you what they mean: where margins are slipping, which costs are creeping up, and practical ideas to make and save more money. Think of us as a light fractional CFO, at a bookkeeping price.

For contractors and construction, that usually means:

• Gross margin by job and by job type, so you can bid the work that pays
• Labor efficiency: estimated vs. actual hours on finished jobs
• Cash flow forecasting around deposits, draws and slow-paying customers
• Overhead per job, so your markup actually covers the office and trucks

What it costs

Monthly bookkeeping starts at $250 per month. Most of our clients pay around $500 per month, depending on how many accounts we reconcile and how many transactions you have. Book a quick call and we'll give you an exact quote.

Frequently asked questions

Do you do job costing in QuickBooks Online?

Yes. We set up projects (or classes, depending on your plan) so every bill, payroll hour and invoice is tied to a job, and you get a profit report for each one.

Can you handle 1099s for my subcontractors?

Yes. We collect W-9s during the year, track what you pay each sub, and file 1099-NEC forms in January.

How do you handle Arizona contractor sales tax?

We separate prime contracting (modification) jobs from MRRA jobs in your books so your TPT returns are based on the right numbers, and we coordinate with your CPA when a job's classification isn't clear.

Services for your business

We work with contractors and construction across Arizona, including Gilbert, Mesa, Chandler, Queen Creek, Phoenix and Scottsdale. See all service areas.