Learn to set up a chart of accounts for your construction trades company

Construction trades are different from general contractors in that they focus on a specific trade. Some examples of construction trades are electricians, plumbers, masons, welders, landscapers, and carpenters. Even though the QuickBooks chart of accounts for a company like this might seem simple to set up, it is important to do so correctly to ensure safe and accurate accounting.

Fill out the form below to gain access to a free PDF with a QuickBooks chart of accounts for construction trades.

Common practice for a company that deals in one specific trade is to have one income account called “Job Income”. This is the best practice since most construction trade companies are contracted for more than one service, and it can be tedious to add to different income accounts—but a better use of QuickBooks would be to use items for more detailed services offered.

Cost of Goods Sold accounts are very important to construction trades. Some common accounts to the construction trade industries are:

• Equipment Rental
• Job Materials Purchased
• Small Tools and Equipment
• Workers Compensation

When putting together a list of expense accounts, it is best to consider the needs of each specific industry. A landscaper may choose to have accounts for repairing heavy machinery and for purchasing mulches, trees, and shrubs. A mason, on the other hand, may have expense accounts for truck rental and the purchase of materials.

Side Note: Are you making money on all of your jobs? Do you know which of your jobs are making money and which are not? If you answered no, consider using job costing in QuickBooks. Job costing is an excellent tool for tracking the time and money spent on a particular project and can be a great indicator of how profitable a specific job is for the company.

If you have any questions or need help setting up your QuickBooks, do not hesitate to reach out to the FTC team!