Small Business Contractor Bookkeeping: Essential Expense Categories & Practices

Core Categories to Track Consistently

• Materials and supplies
• Subcontractor payments
• Tools and equipment
• Vehicles, fuel, tolls, and parking
• Insurance and licensing

The appropriate tax treatment can depend on the facts, so bookkeeping categories should be reviewed with your tax professional when necessary.

Why Statement-Based Bookkeeping Can Work for Trades

For contractors whose needs fit straightforward cash-basis bookkeeping, monthly bank and credit-card statements can provide an efficient foundation for categorization and reconciliation without maintaining accounting software yourself.

Explore our bookkeeping for contractors and trades.