Lincolnwood borders our West Ridge office, and the village runs an unusual business mix for its size. Showroom retail, light industrial and warehousing along the north edge, and a large number of contractors and trades based out of it.
Why contractor books differ
Contractor accounting works differently from most small business bookkeeping. Work crosses month ends, deposits arrive before materials are bought, and retainage sits unpaid until a job closes. A profit and loss statement ignoring all this shows a great month followed by a terrible one on a job earning steadily throughout. We track by job so the numbers describe what happened.
Job costing matters most in the quoting
Record labour, materials and subcontractor cost against the job consuming them and you see which work pays and which work the rest has been subsidising. Most trades businesses we take on have at least one service line believed profitable and running at a loss.
Crew classification
Trades carry the classification question more sharply than most. Crews scale up and down, subcontractors move between general contractors, and Illinois applies a stricter employee test than the federal standard. A crew you direct, schedule and equip generally looks like employment. We look at the arrangement before the first payment, because reclassification after a claim reaches back over everything already paid. We file the 1099-NECs in January either way, and we chase the W-9s in advance rather than during the last week.
Questions owners ask
A customer paid a deposit for work starting next year. Income now?
Usually not on arrival. A deposit against work not yet done is a liability until you earn it, and booking it as revenue makes a strong quarter reversing later. The exact treatment follows your accounting method, worth setting deliberately.
Do you do job costing for construction work?
Yes. Labour, materials and subcontractor cost go against the job consuming them, so each job carries its own margin and a long build stops distorting the months it crosses.
Where are you?
Minutes away. Touhy Avenue east to Western, then south to Campbell. Parking sits directly outside, which matters when you arrive in a work vehicle. Contractors usually find early morning or late afternoon easier than midday, and the office keeps both open.