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

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What's a reasonable monthly fee for bookkeeping services?

For most small service businesses, $200 to $600 per month is a reasonable range for professional bookkeeping. Where you land in that range depends on how many transactions you run, how many bank accounts and credit cards need reconciliation, and whether your business requires any specialized tracking beyond standard categories.

A solo plumber running 40 transactions a month through one bank account and one credit card sits at the lower end. A general contractor with multiple active jobs, several subcontractors, equipment loans, and a few hundred monthly transactions will land higher. The work involved is simply different, and pricing reflects that.

Industry complexity plays a role too. Full-service bookkeeping for a trade or construction business often involves more than just categorizing expenses and reconciling accounts. You may need job costing, tracking subcontractor payments for 1099 reporting, or separating costs by project so you actually know which jobs made money. That kind of detail takes more time than basic bookkeeping for a business with one revenue stream and simple expenses.

Watch out for prices that seem too good to be true. A service charging $99 per month is cutting corners somewhere, whether that means skipping reconciliations, using unqualified staff, or delivering books that look fine on the surface but fall apart when your CPA opens them at tax time. Cleaning up bad bookkeeping almost always costs more than doing it right from the start.

Also consider what is included. Some providers charge a base fee for transaction entry and reconciliation, then add on for financial statements, accounts payable management, or payroll. Others bundle those into one monthly price. Ask exactly what you are getting so you can compare providers on equal terms.

The fee should also make sense relative to what you would spend doing it yourself. If you are a CPA for construction businesses charging $75 or more per hour for your trade work, spending 8 to 10 hours a month on your own books costs you more than hiring a professional. And your time is probably better spent on the jobsite or bidding new work.

A reasonable fee is one where you get accurate books delivered consistently, your tax preparer has clean records to work from, and you can look at your financials and actually understand how your business is doing. If you are paying for bookkeeping and still guessing at your numbers, the price is too high regardless of what it is.

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More Questions

What accounting does a welding shop need?

A welding shop needs job costing, materials tracking, equipment depreciation, and payroll management at a minimum. Without job-level accounting, you can't tell which work is profitable and which jobs are quietly eating your margin.

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What payment terms should I put on my invoices?

For most service-based and trade businesses, Net 15 or Net 30 are standard. The right choice depends on your cash flow needs, the size of the job, and whether you're billing residential or commercial clients.

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How much should I withhold from employee paychecks?

You're required to withhold federal income tax, Social Security, Medicare, and state income tax from every paycheck. The exact amounts depend on each employee's W-4, their wages, and California-specific taxes like SDI.

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Can I deduct tolls and parking for work?

Yes, as long as the driving is for business and not your regular commute. Tolls and parking are deductible on top of the standard mileage rate, which makes them one of the more commonly missed deductions for contractors.

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Should I track mileage or use actual vehicle expenses?

It depends on the vehicle and how you use it. For contractors and trades businesses driving trucks, actual expenses often save more. But both methods require solid mileage records.

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How do I keep a mileage log for the IRS?

Record the date, destination, business purpose, and miles driven for every trip, and do it the same day. The IRS requires contemporaneous records, so a log recreated at year end won't hold up in an audit.

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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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