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Case study · Construction
Remodeling contractor bookkeeping case study: set up right from day one
A brand-new remodeling company in California with the owner as its only employee started with Steingard while it was brand new. We set up the books, payroll registrations and tax accounts correctly from the start. A year in, at about $10,000 a month in revenue, every state and quarterly filing has gone out on time and nothing has needed fixing.
At a glance
| Client | Remodeling contractor, owner on payroll, about $10K monthly revenue |
| Location | California |
| Services | New-business setup · IRS and EDD registration · monthly bookkeeping · payroll · quarterly filings |
| Software | QuickBooks |
| Volume | About 50 transactions a month, 1 bank account, 1 credit card |
| Working together | About 1 year |
| Before Steingard | After |
|---|---|
| New business, no books yet | Books set up correctly the first time |
| Not yet registered with the EDD | Registered with the EDD and IRS, filing quarterly |
| Owner unsure what to track | One business account, one business card, no personal spending in the books |
| Filing deadlines unknown | State and quarterly filings on time |
The problem
Most of our construction clients come to us after the books have gone wrong. This one came at the start. The owner had just launched a small remodeling business and wanted the books, payroll and tax accounts done properly from the beginning rather than repaired later.
What we did
- Set up the books from scratch. A clean chart of accounts in QuickBooks, one business bank account and one business credit card.
- Registered with the EDD and IRS. The owner is on payroll, so the company was set up for California payroll taxes and federal filings correctly from the first run.
- Monthly bookkeeping. About 50 transactions a month, reconciled and closed each month.
- Quarterly review. Once a quarter we go through transactions with the owner and make sure nothing is missing.
Results
| Measure | Result |
|---|---|
| Setup | Books, payroll and tax accounts set up from day one |
| State and quarterly filings | All on time |
| Problems to fix | None |
| Relationship | About 1 year |
Because nothing has had to be cleaned up, the owner spends his time on jobs, not paperwork. He keeps personal spending out of the business, which keeps the monthly close quick.
Common questions
When should a new construction business hire a bookkeeper?
At the start, if you can. This remodeling company set up its books, payroll and tax registrations with us when it was brand new, and a year later nothing has needed fixing.
Do I need to register with the EDD if I am the only employee?
If the business pays you wages through payroll, it generally needs an EDD employer account, even with one employee. We registered this owner-only company with the EDD and set up its quarterly filings from the first payroll.
How much bookkeeping does a small contractor need?
For about 50 transactions a month, a monthly close and a quarterly review call is usually enough. Monthly bookkeeping at Steingard starts at $199 a month.
Books in the same shape?
Cleanup is quoted after a diagnostic review of your file. Monthly bookkeeping is $199 to $999 a month. See pricing · More case studies