Bookkeeping & Accounting
Every contractor from day one. If you take money for work, you need to track it.
Do this first
Open a separate business checking account. Do not deposit a single business dollar into your personal account. Then pick a bookkeeping tool and connect your bank.
- 1.Open a business checking account at your bank (bring your LLC docs and EIN letter)
- 2.Sign up for bookkeeping software: Wave (free), QuickBooks, or Xero (verify current pricing on their sites)
- 3.Connect your business bank account so transactions import automatically
- 4.Create expense categories: materials, fuel/mileage, tools, insurance, phone, software, subcontractors, advertising
- 5.Set up income categories: service revenue, maintenance contracts, emergency/after-hours
- 6.Log your first week of expenses manually to learn the system
- 7.Set aside 25–30% of every payment into a separate savings account for quarterly taxes
- 8.Mark IRS quarterly estimated tax deadlines: Apr 15, Jun 15, Sep 15, Jan 15
- 9.Save every receipt over $75 — take a photo or scan and attach to the transaction
- 10.Review your books every Friday — 15 minutes prevents end-of-year chaos
Cheapest path
Wave is completely free: invoicing, expense tracking, bank connections, and basic reports. It handles everything a solo contractor needs in year one. Upgrade to QuickBooks when you hire an accountant or cross $75K revenue.
Tools to compare
Not endorsements or paid placements. Compare these and other providers.
Free invoicing, expense tracking, and financial reports. No credit card required.
When to use: You are a solo operator with under $75K revenue and simple books.
Visit site ↗Industry standard. Most accountants already know it. Bank feeds, receipt capture, mileage tracking, basic reports.
When to use: You hired an accountant, have employees, or need to track mileage and inventory.
Visit site ↗Multi-user access, project profitability tracking, inventory, payroll integration, and detailed reporting.
When to use: You have a team, multiple job types, and need per-project profit tracking.
Visit site ↗Educational guidance only. Costs, rates, and pricing shown are approximate examples — verify current figures directly with providers and the IRS. This is not tax, accounting, or financial advice. Consult a qualified CPA or tax professional for your specific situation.