You found the missing receipts, answered your tax preparer’s questions, and finally got that return filed. After all that work, it’s tempting to close your bookkeeping software and get back to the jobsite.
Take a breath. You’ve earned it.
Then let’s make sure next tax season doesn’t require the same scramble.
For contractors, bookkeeping needs to keep moving long after the tax return is finished. Your books should help you understand what jobs are earning, what customers owe, and whether you have the cash to cover the next round of payroll and materials.
Here’s where to start.
1. Finish closing out the year you just filed
Before you put last year behind you, check with your tax preparer about any final adjustments that belong in your books.
Equipment purchases, depreciation, loan balances, and other year-end items may need attention. Ask for any adjusting entries and have your bookkeeper coordinate with your preparer so they’re recorded correctly.
Once those adjustments are complete, save your final reports and supporting records. Set a closing date in your bookkeeping software to help prevent accidental changes to the completed year.
A filed return doesn’t automatically mean your bookkeeping is finished. A little follow-through now can prevent confusion later.
2. Bring the current year up to date
While you were getting last year ready, this year kept happening.
You bought materials. Paid subcontractors. Sent invoices. Made loan payments. Maybe purchased another truck.
Now is the time to find out how far behind the current books have fallen and make a realistic catch-up plan.
Start with:
- Reconciling bank and credit card accounts to their statements.
- Reviewing uncategorized transactions and missing receipts.
- Checking for duplicate entries.
- Separating personal spending from business activity.
- Confirming that loan payments are split correctly between principal and interest.
Downloading transactions into your software is only the beginning. They still need to be reviewed, categorized, and reconciled.
3. Check your job costs while the details are still fresh
A construction business can show a profit overall while individual jobs quietly lose money.
Review labor, materials, subcontractors, equipment rentals, and other direct costs by project. Look for expenses assigned to the wrong job—or left without a job assignment at all.
For example, if a material delivery for the Smith remodel landed in general expenses, that project may look more profitable than it really was. That can affect how you price the next remodel.
Compare estimated costs with actual costs. Where did the job run over? Were extra materials needed? Did labor take longer than expected? Was additional work completed before a change order was approved?
Those answers can help you improve your next estimate.
4. Review what customers owe—and what you owe
Your bank balance tells you what’s there today. It doesn’t tell you everything that’s coming.
Review unpaid customer invoices and confirm that payments have been applied correctly. Follow up on overdue balances, check outstanding retainage, and identify approved work that still needs to be billed.
Then review unpaid vendor and subcontractor bills. Are there duplicate bills? Credits that haven’t been applied? Upcoming payments that need to be planned for?
Profit on paper doesn’t guarantee cash for Friday’s payroll.
Knowing what should come in and what needs to go out gives you a clearer picture of the weeks ahead.
5. Turn the tax-season scramble into a better process
Think about what slowed things down this time.
Were receipts scattered between your truck, inbox, and desk? Did your preparer keep asking about transactions you couldn’t remember? Were subcontractor records incomplete?
Choose one practical fix for each recurring problem:
- Capture receipts when you make a purchase.
- Collect subcontractor W-9s during onboarding.
- Set aside time each week to review transactions and outstanding invoices.
- Schedule a monthly close and review your financial reports.
- Keep a running list of questions for your bookkeeper or tax preparer.
The goal is a routine you can maintain, even when work gets busy.
What if the deadline passed and you still haven’t filed?
Contact your tax preparer promptly and identify exactly what’s missing. Give them a specific list of unfinished bookkeeping items so you can agree on the next steps.
An extension generally gives you more time to file, not more time to pay. Your filing deadline and any available relief depend on your circumstances, so confirm those details with your preparer. The IRS explains how filing extensions work here.
Give your books a job beyond tax season
Getting a return filed is a milestone. Keeping your books current helps you make decisions throughout the year.
You should be able to see which projects are making money, which customers need a follow-up, and what obligations are coming due—without spending a weekend piecing it all together.
At Counting Construction Beans, LLC, we help contractors make sense of their numbers, from catching up overdue bookkeeping to keeping job costs and monthly records organized.
If this tax season took more time and energy than you wanted, now is a good time to build a better routine.
Contact Counting Construction Beans to talk about getting your books caught up and keeping them that way. Based in Wichita, Kansas, we serve construction businesses remotely nationwide.
Solid books. Stronger business.