Client Background
This case study highlights a small general contracting business specializing in bathroom and kitchen renovations. The business is owned by a solo entrepreneur who manages a team of a dozen or more independent contractors handling the majority of the labor.
The Challenge
When he reached out to us, his QuickBooks account was not being properly managed, leading to a messy chart of accounts filled with redundant categories and miscategorized transactions. He struggled to track where his money was going each month and lacked a structured system for billing clients and capturing change orders, which often led to confusion and missed revenue. Additionally, he was not consistently collecting W-9s from his independent contractors or properly filing 1099-NEC forms, putting him at risk of noncompliance with IRS regulations.
The Solution
To establish a solid financial foundation, we implemented a hands-on approach, meeting weekly to:
- Organize and categorize transactions to maintain accurate financial records
- Capture business documentation to ensure all expenses and revenues were accounted for
- Review client billing and change orders, ensuring additional costs were properly recorded and invoiced
- Analyze financial statements to provide insight into profitability and cash flow
- Ensure IRS compliance by collecting W-9s from all independent contractors and handling 1099-NEC filings
The Results
With a consistent bookkeeping system in place, the business now operates with clarity and confidence. Key improvements include:
- Tax planning & payroll optimization: By working closely with his CPA, we determined appropriate federal/state tax withholding and established a structured payroll schedule
- Improved financial visibility: The business owner now knows exactly where his money is going on a monthly basis, allowing for better budgeting and decision-making
- Change order tracking: All additional costs beyond original estimates are now properly documented and billed, preventing lost revenue
- IRS compliance: W-9s are collected and 1099-NEC forms are filed on time, ensuring the business stays compliant with contractor tax reporting requirements
- Stress-free tax season: With clean and organized books, tax filings are now seamless and hassle-free
By streamlining his bookkeeping, billing, and tax compliance processes, we’ve helped this contractor gain the financial structure he needs to confidently scale his business while staying compliant with IRS regulations.
