The contractor's month-end bookkeeping checklist

A plain checklist for plumbers, electricians, HVAC techs, remodelers and other trades who do their own books in QuickBooks Online or Xero. It takes about an hour a month once it's a habit. Skipping it can cost far more at tax time.

Before you start: get everything in one place

• Bank and card statements for every business account, for the whole month. Download them as CSV or PDF from your bank's website.
• Supply-house invoices and statements. Home Depot Pro, Ferguson, Grainger, your local supply house. Most have an online account where you can download the month's invoices.
• Receipts from the truck. Fuel, parts runs, tools, meals on the road. Photograph them flat, with the total readable. Don't wait for the faded thermal-paper ones to become unreadable.
• Customer payments. Checks deposited, card payments (Square, QuickBooks Payments, Stripe), transfers and cash.
• Payroll and subcontractor payments. Payroll provider reports, and anything paid to 1099 subcontractors.

1. Match every bank and card line

• Every money-out line should have a receipt or bill behind it. Note any that don't, and track them down while you still remember.
• Watch for one payment covering several invoices, which is common with supply-house accounts. Match it to all of them, not just one.
• Watch for part-payments, and keep the rest of that bill marked as still owed.
• Every deposit should match a customer invoice, card sales, or something you can name, such as a loan or owner money. Deposits you can't explain are what your accountant will ask about.

2. Put each expense in the right category

• Materials for a specific job and general shop supplies are often tracked separately. Ask your accountant how they want it.
• Tools and equipment above a certain cost may need to be recorded as assets, not expenses. Your accountant sets the threshold.
• Vehicle costs: fuel, repairs, insurance. Keep personal use out, or track it the way your accountant tells you to.
• Subcontractors vs employees. Keep them in separate categories; it matters for 1099s and payroll.
• Use the same category for the same vendor every month. Mixed categories make the year-end numbers meaningless.

3. Check what's still open

• Bills you haven't paid: which are due, and which are overdue.
• Invoices customers haven't paid: chase anything older than 30 days.
• Retainage held back on jobs: note what's owed to you and when it's due.

4. Reconcile and close

• Reconcile each account in QuickBooks Online or Xero against the statement's ending balance. The difference should be zero.
• Look at the month's income and expenses once. Does anything look wildly off?
• Close or lock the month so nothing changes it by accident.
• Set aside money for estimated taxes, using the amount your accountant gave you.

Signs your books need help

• You're more than a month behind.
• Deposits you can't explain.
• One big "Uncategorized" or "Ask my accountant" pile.
• Your accountant charges extra at tax time to clean things up.

If you keep the books for several clients, the free Ledger Routine tool does step 1 for you. It matches the bank and card lines to the receipts, bills and invoices and lists what it couldn't settle. Open the tool →. If you'd rather have the month done for you, join the waitlist on the homepage.

This checklist is general information, not tax or accounting advice. Your accountant's instructions come first.

Back to home