Bookkeeping for BC contractors and trades
Revenue arrives in progress draws, holdbacks sit on the balance sheet for months, and subcontractor payments come with their own CRA reporting. We set your books up around jobs, then keep them current every month.
Why construction books need a different setup
In most small businesses, a sale happens and the revenue is earned. In construction, a single contract can run for months, bill in stages, hold back a percentage until completion, and involve a chain of subcontractors who each need to be tracked for CRA. A generic chart of accounts can't show whether a job made money until long after it's finished.
Setting the books up around jobs from the start changes that. Costs are tagged to the job as they happen, progress billings are matched to the work completed, and holdbacks sit on the balance sheet where they belong — so you can see margins while there's still time to act on them.
What makes these books different
Job costing
Materials, labour, and subcontractor costs tagged to the job they belong to, so you can see which jobs made money and which didn't.
Holdbacks
Under BC's Builders Lien Act, a 10% holdback is typically retained from contract payments. We record holdbacks receivable and payable separately, so they don't disappear into revenue or payables.
Progress billing
Draws and progress invoices matched to the work completed, so revenue isn't overstated early in a project.
Vehicles & equipment
Trucks, trailers, and tools set up for capital cost allowance, with business-use records kept for vehicles.
How we set up your books
A chart of accounts for trades
Revenue, materials, labour, subcontractors, and equipment separated from day one.
Jobs as a tracking category
Costs and billings tagged by job or project in your bookkeeping software.
Holdback accounts
Holdbacks receivable and payable recorded apart from revenue and payables.
Subcontractor records
Payments to subcontractors tracked all year, ready for T5018 reporting.
Compliance we keep on top of
T5018 contract payment reporting
If construction is your main business activity, CRA requires you to report payments to subcontractors on T5018 slips. We track subcontractor payments all year, so the slips are straightforward.
WorkSafeBC
Employers need WorkSafeBC coverage, and a contractor can be held liable for a subcontractor's unpaid premiums. Clearance letters for your subs protect you; we keep your own payroll reporting current.
GST on contracts
GST applies to most construction services, and input tax credits on materials and subcontractor invoices add up quickly — as long as the invoices carry the information CRA requires, including the supplier's GST number.
Contractors and trades, by area
- Construction & Trades in RichmondBuilding on the Fraser delta
- Construction & Trades in SurreyHouse lots, towers and industrial land in one city
- Construction & Trades in BurnabyTowers in the town centres
- Construction & Trades in VancouverRenovations, multiplexes and the Broadway corridor
- Construction & Trades in the Fraser ValleyLangley to Abbotsford
Common questions
When are T5018 slips due?
T5018 information returns are due six months after the end of your reporting period, which can be either the calendar year or your fiscal year.
Do subcontractors need their own WorkSafeBC coverage?
Often, yes — and it matters to you, because a contractor can be held liable for a subcontractor's unpaid premiums. A WorkSafeBC clearance letter confirms a subcontractor's account is in good standing. WorkSafeBC can confirm exactly what applies to your business.
Can I see profit by job?
Yes. Costs and billings are tagged by job as they're recorded, so each job's profit is visible throughout the project, not only after it wraps up.
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