Bookkeeping for Construction & Trade Contractors in Texas
Running a construction or trade business in Texas means managing multiple job sites, tracking material costs, paying subcontractors, and keeping the work profitable—all while staying on top of payroll, equipment depreciation, and complex tax rules.Construction bookkeeping is not like general small business accounting. You need a system that tracks profitability by project, not just by month. If your construction company in Dallas–Fort Worth, Houston, Austin, San Antonio, El Paso, or anywhere in Texas is struggling to answer these questions, it is time for a bookkeeper who understands the construction trade.
Why Construction and Trade Contractors Need Specialized Bookkeeping
Construction financials are fundamentally different from other businesses. Unlike a restaurant or office-based service, construction operates on project-based economics where profitability must be tracked per job, not just per month—a single unprofitable project can erase months of solid work. Equipment, subcontractors, and material costs fluctuate wildly between jobs, making it nearly impossible for generalist bookkeepers to give you real answers to questions like "Is this kitchen remodel actually making money?" or "Should I bid lower next time?"
No clear view of job profitability
You complete projects but do not know if they were profitable until months later at tax time.
Bank Reconciliation
It is unclear whether a check cleared, which job it belonged to, and whether materials were entered correctly.
Payroll & tax complexity
Managing multiple crews, overtime, prevailing wage (on public projects), and payroll taxes adds friction.
Cashflow Surprises
You are collecting retainage, waiting on change orders, or financing materials yourself—and your bookkeeping does not show the real cash picture.
No asset tracking
You bought a truck three years ago, a skid steer last year, and some hand tools monthly. Nothing is properly depreciated or recorded.
Year-end scramble
Your CPA only sees numbers once a year, and suddenly you owe taxes you did not budget for because the books were unclear.
Texas-Specific Compliance for Construction & Trades
Sales Tax & Exemptions
Texas has unique rules around sales tax for contractors. In some cases, you are exempt from sales tax on materials if you are a licensed contractor installing them as part of a project. In other cases, you need to charge sales tax on labor. A strong bookkeeping process helps you:
Understand whether materials for each job are taxable or exempt
Track exemption certificates from customers
Reconcile sales tax collected to your monthly or quarterly returns
Avoid overpaying or underpaying state and local sales tax
Prevailing Wage and Public Projects
If you do work on public projects (schools, highways, municipal buildings), Texas may require you to pay prevailing wages. This adds a layer of compliance to payroll. A good bookkeeping system:
Separates prevailing wage employees from regular payroll
Tracks wages by project to verify compliance
Maintains detailed records in case of state audits
Ensures you are accurately billing prevailing wage costs to the project
Contractor License and Insurance
Texas requires contractors to be licensed and maintain liability insurance. While bookkeeping does not manage your license, it does:
Track insurance payments and renewals
Document that you maintain required coverage (important if audited)
Allocate insurance costs to the correct period
What to Look For in a Construction Bookkeeper in Texas?
Trinity Rivers Financial focuses on helping Texas construction and trade business owners build bookkeeping systems that support real-time project profitability and smart business decisions.
✓ Understanding of job costing and profitability tracking. The ability to pull a report and answer, "Did Job #47 make $8,000 or did it lose $2,000?"
✓ Familiarity with Texas construction rules. Sales tax exemptions, prevailing wage on public projects, contractor compliance, and state-specific deductions.
✓ Integration with construction software. Ability to work with software like QuickBooks (with job costing enabled), Xero, or specialized construction accounting tools.
✓ Monthly financial reviews with insight. Not just data entry, but real analysis of job costs, labor productivity, and project health.
✓ Asset and equipment tracking. Management of depreciation, equipment purchases, and long-term asset values.The goal is not just "books in order."
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FAQ: Bookkeeping for Texas Construction & Trade Contractors
If you own or manage a construction or trade business in Dallas–Fort Worth, Houston, Austin, San Antonio, El Paso, or anywhere in Texas and you are searching for a bookkeeper who understands job costing, equipment tracking, and project-based profitability.
Trinity Rivers Financial partners with Texas construction and trade business owners to bring clarity to job costs, support profitable growth, and give you confidence that every project is accounted for correctly.If you are ready to understand your true project profitability and make data-driven decisions about labor, materials, and future growth, consider scheduling a consultation to review your current bookkeeping setup and discuss how dedicated Texas construction bookkeeping support can help your business thrive.
Contact Trinity Rivers Financial today to start managing jobs like the profitable business you are building.
What if I use construction-specific software like Buildr, BuilderTrend, or JobTrakker?
These field management tools are great for scheduling and photos, but they do not replace accounting software. A good bookkeeper integrates your field data (labor hours, material usage) into QuickBooks or Xero so it becomes part of your official financial statements. The two systems work together.
How often should my job costing reports be updated?
Ideally, weekly or biweekly so you can catch cost overruns early and adjust the project. Most of Trinity Rivers Financial's construction clients receive monthly reviews with weekly updates as needed.
Do I need to track assets (trucks, equipment) separately in bookkeeping?
Absolutely. Assets depreciate over time, and you need to know the book value of your equipment for lender conversations, equipment financing, and tax planning. This is especially important if you are buying or selling equipment or planning to refinance a business loan.
Can bookkeeping help me estimate better for future projects?
Yes. Historical job costing data becomes your best tool for bidding. If five similar roofing projects averaged $35/sq. ft. in costs, you can bid the next one confidently knowing your cost basis.