Tax and bookkeeping built for contractors

Job costing

Knowing whether each project is profitable — not just whether the business overall is profitable. Without job-level costing, profitable-looking businesses can be losing money on individual contracts.

Work in progress (WIP)

Revenue recognition on long-term projects is complex. Overbilling and underbilling affect your financial statements and your tax liability in ways that are easy to mishandle.

Retainage

Retainage — the percentage held back until project completion — creates a gap between revenue earned and cash received. It needs to be tracked separately and managed carefully.

Subcontractor 1099 compliance

Any subcontractor paid $600 or more in a year requires a 1099-NEC. Missing 1099s create IRS exposure. W-9 collection and 1099 filing need to be part of your year-end process.

Equipment purchases and Section 179

Timing equipment purchases around Section 179 and bonus depreciation can significantly reduce your tax bill — but only if you have taxable income to offset and the equipment is actually placed in service.

Cash-flow gaps

Construction businesses often bill on completion milestones but pay labor and materials weekly. The gap between cash out and cash in creates cash-flow pressure even on profitable projects.

Payroll complexity

Prevailing wage requirements, certified payroll for public projects, and multi-state payroll for contractors working across state lines add compliance complexity that generic payroll services often miss.

Entity structure

Many contractors operate as sole proprietors or single-member LLCs when an S-corp election could reduce self-employment tax. The right structure depends on net income, payroll costs, and New York-specific tax considerations.

When:

Net income exceeds $60,000

Evaluate S-corp election to reduce self-employment tax

When:

Major equipment purchase planned

Time the purchase to maximize Section 179 or bonus depreciation

When:

Hiring first employees

Set up payroll correctly — prevailing wage, certified payroll if applicable

When:

Large project completing in Q4

Review income timing — can any billing shift to next year?

When:

Subcontractor payments approaching $600

Collect W-9s now, not in January

When:

Profitable year with cash available

Maximize retirement contributions before year-end