Carpenters and small construction crews move fast—quotes, change orders, materials runs, and subs—leaving little time for the back office. A virtual accounting model gives you a remote team that runs job costing, payroll, tax deadlines, and cash forecasting without slowing production. At Henriquez Accounting & Tax Services, we combine a disciplined monthly close with quarterly tax planning and clear dashboards tailored to contractors. Explore Bookkeeping, Tax Preparation, and Controller/CFO Advisory.
Why Carpenters Benefit from Virtual Accounting
- Anytime, anywhere: estimates, invoices, and approvals handled digitally—no office visit required.
- Job-cost clarity: labor, materials, subs, and overhead tracked by job/phase so pricing stays profitable.
- Tax-ready books: categories aligned to returns with documentation and receipt capture built in.
- Cash visibility: 13-week cash forecast and AR collections cadence to avoid payroll crunches.
- Scale up or down: add projects or crews without rebuilding your back office stack.
Carpenter Tax Essentials (What We Watch)
- Entity & S-Corp planning: model salary vs. distributions and set reasonable compensation with payroll.
- Tools, trucks & trailers: Section 179/bonus options; mileage vs. actual expense; logs/support required.
- Materials & sales/use tax: rules vary by state and contract type (lump-sum vs. T&M). We review registrations and mapping so you pay/collect correctly.
- Subs & compliance: W-9 collection, 1099-NEC e-filing, insurance/COI tracking, and lien releases workflow.
- Longer jobs: retainage and WIP tracking; completed-contract vs. percentage-of-completion considerations (facts & thresholds matter).
- Home office & reimbursables: accountable plan for mileage, supplies, and cell—keep owner draws clean.
Job Costing & WIP—How We Keep Numbers Useful
Job Costing Basics
- Standard cost codes: labor (with burden), materials, subs, equipment, permits.
- Purchase orders tied to jobs; receiving matched to invoices.
- Timesheets by job/phase; approvals from the field (mobile).
Work-in-Process (WIP)
- Budget vs. actual by phase; percent complete and earned revenue.
- Retainage tracked separately; AR aging with lien release status.
- Change orders logged and priced before costs hit the job.
Our Virtual Cadence (Month–Quarter–Year)
Monthly
- Reconcile bank/credit/merchant; close Undeposited Funds & clearing.
- Issue P&L, Balance Sheet, Cash Flow, and Job Cost/WIP reports.
- AR collections cadence; AP batching & vendor approvals; update 13-week cash forecast.
- Sales/use tax filings where applicable; W-9 intake for new subs.
Quarterly
- Estimated tax projections & vouchers; payroll/941 reviews; S-Corp compensation check.
- KPI review: gross margin by job, labor utilization, DSO/DPO, and backlog health.
- System tune-ups: cost codes, bank rules, user access, and close checklist.
Annually
- 1099-NEC/1099-MISC e-filing; fixed-asset roll-forward and depreciation schedules.
- Return prep (1120S/1065/1120; 1040 Schedule C/E) and next-year planning.
Common (Costly) Mistakes We Fix
- Materials coded to overhead instead of jobs → margins look fine until cash runs short.
- Owner fuel/tools mixed with business without an accountable plan.
- Delivery card deposits posted net (fees hidden) → merchant clearing never ties out.
- No W-9/COI process → year-end 1099 scramble and compliance risk.
- Retainage forgotten in AR → “paid” jobs still short on cash.
Contractor KPIs We Track
- Gross margin by job and variance to budget/estimate.
- Labor utilization and burdened labor cost by phase.
- Backlog value and scheduled start dates.
- DSO/DPO and overall cash conversion cycle.
- WIP over/under billings and retainage aging.
Recommended Stack (Built for Carpenters)
- Accounting: QuickBooks Online/Desktop with Projects/Classes for job costing.
- Job Management: Buildertrend, CoConstruct (Buildertrend), or Knowify.
- Time & Scheduling: QuickBooks Time, 7shifts/Homebase (crew scheduling), or Jobber (for service work).
- AP & Spend: Bill.com or Ramp with vendor policies and PO matching.
- Receipts & Docs: Dext/Hubdoc—attach photos for materials and jobsite deliveries.
- e-Signature & Portals: secure client portal with e-sign for change orders and W-9s.
Note: Sales/use tax, contract method, and payroll rules vary by state and contract type. We’ll review your facts and align filings and policies accordingly.
What You’ll Get When You Work With Us
- Clean, reconciled books and job-cost/WIP reporting—every month.
- Quarterly tax projections with due dates and vouchers.
- 1099s/W-9 workflow, sales/use tax coordination, and notice handling.
- Owner dashboard: margins by job, cash runway, DSO/DPO, backlog.
- Secure portal, e-sign, and fast responses designed for crews in the field.
FAQs
Do carpenters need to charge sales tax on labor or materials?
It depends on your state and contract type. Many states treat contractors as the consumer of materials (sales tax paid on purchase), while some contracts or states require collecting/remitting tax. We’ll review your mix and register/map accordingly.
What’s better for my truck—mileage or actual expenses?
We model both. Mileage can be simpler; actual can win when payments, insurance, fuel, and repairs are high. Either way, logs/support matter.
How should I handle subcontractors?
Collect W-9s up front, track insurance/COIs, pay via AP with POs where possible, and file 1099-NEC each January. We’ll automate the workflow.
Do I need percentage-of-completion accounting?
Depends on job length, size, and tax thresholds. Some contractors can use completed-contract; others must use POC. We’ll evaluate and plan ahead.
When does an S-Corp make sense for a carpenter?
When profits support a reasonable W-2 salary plus distributions after payroll/tax costs. We’ll model compensation and timing before electing.
Ready to put your carpenter accounting on autopilot?
We’ll implement job costing, WIP reporting, tax planning, and a simple dashboard—so your crew can stay on schedule and profitable. Talk to an Enrolled Agent today. Schedule Consultation
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