Bookkeeping · 5 min read
Accounting for Subcontractors
Accounting for subcontractors helps independent tradespeople and specialty contractors track income, expenses, taxes, and project profitability. Subcontractors need clean records to price jobs, pay taxes, and manage cash flow.
Details
Subcontractor accounting should include:
- Invoice tracking
- Expense categorization
- Job costing
- Mileage tracking
- Material costs
- Tool purchases
- Insurance payments
- Estimated taxes
- 1099 income tracking
- Bank reconciliation
- Profit reports
Details
Subcontractors should separate business and personal finances by using a business bank account and dedicated payment methods.
