Common Contractor Bookkeeping Mistakes

You can stop chasing receipts all over the place. On the dashboard of the truck, in the glovebox, around the house, and in shoe boxes. Can you remember where you put the receipts yesterday or last week? If not, you can see how easy it is to get disorganized.

It can be dangerously chaotic. You can miss out on many deductions and become stressed out if you’re ever audited.

. Receipts pile up

. Fuel purchases get forgotten

. Material receipts get lost

. Tax time becomes very stressful

1. Separate Business and Personal Expenses

One account and one card if possible

2. Save Receipts Immediately

Don’t wait until the end of the week

3. Organize Expenses By Category

Examples

  • materials
  • fuel
  • equipment
  • subcontractors
  • office expenses

4. Review Expenses Weekly

A 15 minute habit helps prevent a giant monthly mess

5. Use Accounting Software

This is where QuickBooks comes in

Many contractors use accounting software to store expenses and receipts digitally. QuickBooks is one option, but the most important thing is having a consistent system that you actually use.

Conclusion

The system matters more than the software.

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