Bookkeeping and tax services for contractors and trades in Long Beach and across Greater LA.

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What does a bookkeeper need from me each month?

The biggest thing a bookkeeper needs is access to your financial accounts. Once your bank accounts and credit cards are connected to QuickBooks Online through bank feeds, your bookkeeper can pull transactions automatically. That eliminates the old routine of scanning or mailing statements every month. Most of the heavy lifting happens without you doing anything.

Beyond the bank feeds, your bookkeeper needs you to flag anything that doesn’t show up in a bank or credit card feed. Cash transactions are the biggest one. If you collected a cash payment from a customer or paid a supplier in cash, your bookkeeper has no way of knowing unless you tell them. Same with personal funds used for business purchases. If you grabbed materials at Home Depot on your personal card because it was faster, that needs to be communicated or it won’t end up in your books.

Receipts matter, especially for expenses over $75 and for meals or travel. The IRS wants documentation beyond just a bank statement line item. A good system for this is snapping a photo of receipts with your phone and dropping them into a shared folder or app. It takes seconds in the moment and saves hours of scrambling later.

If you run payroll, your bookkeeper needs access to payroll reports or the payroll platform itself. They need to record wages, employer taxes, and any benefits so the books match what actually went out. If you use a service like Gusto or QuickBooks Payroll, this is usually straightforward.

Your bookkeeper also needs you to answer questions when they come up. There will be transactions they can’t identify just by looking at the description. A $3,200 charge at a supply house could be materials for a specific job or general shop supplies. A deposit could be a customer payment, a loan draw, or an insurance reimbursement. Quick responses to these questions keep the books accurate and on schedule. This is an important part of full-service bookkeeping working well.

Lastly, let your bookkeeper know about anything significant that happened during the month. New equipment purchases, vehicle loans, insurance policy changes, a new line of credit, or a large refund. These aren’t always obvious from transaction data alone, and catching them in the right month keeps your financials reliable.

The whole process usually takes 15 to 30 minutes of your time each month once a routine is in place. Most contractors and trade business owners I work with as a CPA for construction and trade businesses are surprised by how little is needed from their end. The key is consistency. A few minutes each week beats an hour-long scramble at month end trying to remember what happened three weeks ago.

Long Beach's CPA for Contractors and Trades

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More Questions

What does a CPA do that a bookkeeper doesn't?

A CPA is a licensed professional who can file tax returns, represent you before the IRS, and provide strategic tax and financial advice. A bookkeeper handles the daily recording of transactions that makes all of that possible.

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Are contractor tools and equipment tax deductible?

Yes. Tools and equipment used for your trade are fully deductible. Smaller items can be expensed immediately, while larger equipment can be deducted through Section 179 or depreciated over time.

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What is a 1099-NEC and when do I file it?

A 1099-NEC reports nonemployee compensation of $600 or more paid to individuals or unincorporated businesses during the year. You must file it with the IRS and deliver a copy to the recipient by January 31.

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How do I set up payroll for my small contracting business?

Register for federal and California state employer accounts, get workers' comp insurance, choose a payroll system, and classify your workers correctly before running your first paycheck.

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Do I need to pay estimated quarterly taxes?

If you're self-employed and expect to owe $1,000 or more in federal taxes, yes. Most contractors and trade business owners need to make quarterly payments because no employer is withholding taxes from their income.

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What's the difference between a personal and business tax return?

A personal tax return reports all your individual income. A business tax return reports your company's revenue, expenses, and profit. Most trades business owners file both, and the two returns are directly connected.

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Long Beach CPA firm specializing in contractors, trades, and service businesses. Bookkeeping, tax preparation, IRS representation, and advisory services for businesses across the South Bay and Greater LA. Owned and operated by a CPA with over a decade of hands-on experience.

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