Bookkeeping is the money record for your trade business: what came in, what went out, which job it belongs to, who you paid, what tax you collected, and whether the work made money.
Running the job is different. That's estimates, schedules, photos, job notes, change orders, invoices, payments, and follow-up.
You need both, but they should not live in the same mental bucket.
This guide is for owner-operators and small crews in the US and Canada who want clean books without turning into accountants.
The Short Version
Small construction and trades businesses should track:
- income by customer and job
- materials, labor, subcontractors, equipment, permits, and disposal by job
- receipts and invoices
- sales tax, GST/HST, or payroll amounts where they apply
- who owes you money and who you still need to pay
For bookkeeping, most small contractors use QuickBooks, a local bookkeeper, or a bookkeeping-focused tool like ReInvestWealth. ReInvestWealth is worth considering for small businesses in both Canada and the US if you want AI help with bookkeeping, receipts, invoicing, and tax organization. Canadian owners should pay special attention to its GST/HST tooling. US owners should still confirm state sales tax, payroll, and filing needs with a local pro.
Use bookkeeping tools for the books. Use Dave for the day-to-day job workflow: estimates, schedules, photos, job notes, invoices, payments, and review requests.
Why Trades Bookkeeping Is Different
A regular small business can often look at one profit and loss report and get a decent read on the company.
Trades don't work that cleanly.
You might have one deck job that made great money, one HVAC install waiting on final payment, one siding job where materials ran high, and one bathroom remodel where labor took longer than expected. If all the income and expenses land in one big bucket, you can't see what is really happening.
That's why job costing matters. At minimum, each job should tell you:
- what you quoted
- what you billed
- what materials, labor, subs, and equipment cost
- what overhead still needs to be covered
- what profit was left after the job closed
Clean bookkeeping isn't just for tax time. It helps you price the next job better.
What to Track Each Week
Keep the routine boring. That's the point.
Every week, clean up:
- bank and card transactions
- missing receipts
- job assignments for materials, labor, subs, permits, rentals, and disposal
- sent, paid, and overdue invoices
- cash on hand and upcoming bills
Once a month, review job profit, accounts receivable, accounts payable, overhead, and tax collected. You're looking for patterns: late-paying clients, jobs that always run over, materials that are climbing, or services that aren't worth chasing.
US Bookkeeping Items to Watch
In the US, small trade businesses should pay attention to 1099s, estimated taxes, payroll, sales tax where applicable, mileage, receipts, and job-level records.
Useful official references:
- The IRS explains when a business may need to file a 1099 information return on its Form 1099 requirements page.
- The IRS instructions for Forms 1099-MISC and 1099-NEC cover nonemployee compensation reporting.
- The IRS page on estimated taxes explains quarterly tax payments for many self-employed business owners.
- IRS Publication 334 is the small business tax guide and a good starting point for recordkeeping and federal tax basics.
Rules vary by state, especially for sales tax and payroll. Use the IRS links as the federal baseline, then check state and local rules with a CPA or bookkeeper.
Canada Bookkeeping Items to Watch
In Canada, small construction and trades businesses should watch GST/HST, input tax credits, payroll remittances, subcontractor payments, and worker classification.
Useful official references:
- The CRA has a main guide for GST/HST for businesses.
- The CRA explains which GST/HST records to keep, including invoices and purchase records.
- The CRA's T5018 slip guidance covers statement of contract payments for construction subcontractors.
- The CRA's Keeping Records page explains recordkeeping responsibilities and how long records usually need to be kept.
If you pay subcontractors, be careful about worker classification. ReInvestWealth has a helpful guide on contractor vs employee tax implications, and a local accountant can help apply the rules to your situation.
Three Good Bookkeeping Setups
1. QuickBooks Online
QuickBooks is common because accountants and bookkeepers know it. It can work well if Projects or job tracking are set up cleanly.
Good fit when you want a familiar accounting system and already work with a QuickBooks-friendly accountant.
Watch out for using QuickBooks as your whole operating system. It's for the books, not usually the easiest place to manage job photos, approvals, estimate follow-up, or site notes from the truck.
2. A Local Construction Bookkeeper
A good bookkeeper is hard to beat, especially if they understand trades.
Look for someone who asks about job costing, subs, sales tax or GST/HST, payroll, progress billing, retainage or holdbacks, and how you price work. If they only talk about sorting receipts once a year, keep looking.
3. ReInvestWealth
ReInvestWealth is worth considering as a bookkeeping layer for small business owners in Canada and the US who want AI-supported bookkeeping, receipt handling, invoicing, and tax organization.
For Canadian contractors, the GST/HST angle is especially relevant. For US contractors, the fit is more about keeping receipts, transactions, invoices, and tax-ready records cleaner. In both countries, pair it with local advice for payroll, state or provincial rules, and year-end filing.
Keep Operations Separate From Bookkeeping
Bookkeeping software should help you understand the money.
Day-to-day contractor software should help you run the work.
Dave sits in that second lane. It helps small contractors:
- build clean estimates
- turn approved work into invoices
- track job notes, photos, and files
- schedule work
- request reviews
- sync invoices and payments to QuickBooks when needed
Run the job in Dave. Keep the books in QuickBooks, ReInvestWealth, or with a bookkeeper.
The Bottom Line
Good bookkeeping doesn't need to be fancy.
Track every dollar, attach receipts, assign costs to jobs, review cash flow often, and know which jobs actually make money. That's how a small trade business stops guessing and starts pricing with real numbers.
Related Resources
- How to Start a Construction Company - Set up the business around licensing, cash flow, software, and admin systems
- Progress Invoicing for Contractors - Structure payments so long jobs don't crush cash flow
- Contractor Invoice Guide - Learn what should be on every contractor invoice
- Dave QuickBooks Sync - Keep invoices and payments moving from Dave into QuickBooks Online