Bookkeeping for Handymen and Contractors: A Straightforward Guide
If you’re great with tools but hate spreadsheets — you’re not alone.
Whether you're patching drywall, rewiring a garage, or managing subcontractors, the last thing most handymen and contractors want to do at the end of a long day is sit down and sort receipts. But staying on top of your books isn’t just a tax-time thing — it’s how you keep your business profitable and growing.
Here’s a no-fluff guide to bookkeeping for handymen and contractors who want to keep things simple, accurate, and under control.
Why Bookkeeping Matters for Contractors
Bookkeeping isn’t just about avoiding the IRS (though that’s part of it). Clean books help you:
Know if your jobs are actually profitable
Track which services make the most money
Prepare for slow seasons
Budget for new tools or a truck upgrade
Avoid surprise tax bills
And if you ever want a loan, a contractor license, or to grow your crew — you’ll need clean financials.
What You Need to Track
Even if you’re a solo operator, your business has moving parts. Here’s what to keep tabs on:
1. Income
Track all payments from:
Clients
General contractors you subcontract for
Side jobs (yes, even those cash ones)
Tip: Don’t wait until year-end to tally this up — track it monthly to catch underpayment or missed invoices.
2. Expenses
Common deductible expenses for handymen and contractors:
Tools and materials
Fuel and mileage
Job site supplies
Work-related phone/internet
Business insurance
Safety gear and uniforms
Software (scheduling, invoicing, bookkeeping)
Save your receipts or snap photos of them and upload to a cloud folder or QuickBooks app.
3. Mileage or Vehicle Use
If you drive to job sites, you may be eligible for a mileage deduction. Either:
Log your miles with an app (like MileIQ or QuickBooks)
Or track actual fuel/vehicle expenses (but this takes more effort)
Common Bookkeeping Mistakes Contractors Make
Mixing personal and business expenses (keep your cards/accounts separate!)
Not saving receipts
Forgetting to log cash jobs
Falling behind on categorizing transactions
Waiting until tax season to “figure it all out”
Bookkeeping Tools to Use
You don’t need anything fancy to get started — but using a solid system will save you hours later.
Recommended tools:
QuickBooks Online – best all-around for solo tradespeople
Wave – free and decent for basic needs
Joist or Jobber – great for invoicing and job management
A Simple Bookkeeping Routine
Once a week:
Categorize transactions
Send invoices and follow up on unpaid ones
Once a month:
Reconcile accounts
Review your income and expenses
Set aside tax savings (25–30% of net income is a good rule)
Final Thoughts
You don’t need to be a numbers guy to run a solid business — just a little consistency goes a long way. Whether you’re solo or growing a team, good bookkeeping keeps you in control of your money and your time.
Want help getting your books cleaned up or caught up?
I offer a free Bookkeeping Health Check — no stress, no pressure, just clarity.
You can contact us by clicking here
Or shoot an email to David@RuckandReconcile.com
Check out our services here
And as always, thank you so much for reading!