Service and project
Kept apart in the books
Service work and contract work have different margins and cash cycles. We report them separately so one does not hide the other.
Accounting for electrical contractors
Service calls pay one way and project work another. We split the two in your books, cost your labor with its full burden, and keep track of the retainage GCs are holding.
What we watch for
Where the money is won or lost.
Service work and project work, labor burden and retainage owed by GCs.
Labor
The full cost of an hour
An electrician's hour costs more than the wage: payroll taxes, workers' comp, benefits and training. We build the burdened rate so bids and job costs use the real number.
Retainage
Retainage owed by GCs
On project work, GCs hold part of every payment until the end. We track it by job so it gets billed and collected.
Materials
Material prices that move
Wire and gear prices change between bid and install. Job costing shows when materials run ahead of the estimate, while there is still time to act.
Trucks
Vans and truck stock
Material on vans is coded to jobs as it is used, so truck stock does not quietly drain your margins.
Monthly reporting
The numbers we report every month.
A short schedule, the same every month, so you can see the trend as well as the number.
| Line | Number | What it tells you |
|---|---|---|
| 01 | Burdened labor rate | Wage plus taxes, insurance and benefits, per hour |
| 02 | Margin, service and project | Side by side, each month |
| 03 | Retainage receivable | Held by GCs, by job |
| 04 | Labor hours against estimate | On every open project |
| 05 | Days to collect | Service invoices and progress billings |
Tax
Tax notes for 2026.
Weekly
Certified payroll on federal jobs
Davis-Bacon certified payroll
Federally funded construction jobs need a certified payroll every week, signed with a statement of compliance. Form WH-347 is optional; the information is not. Some states add prevailing wage rules of their own.
$2.56M
Section 179 limit, 2026
Equipment in the year you buy it
Section 179 allows up to $2,560,000 in 2026, reduced once purchases pass $4,090,000, and equipment acquired after January 19, 2025 can also qualify for 100% bonus depreciation. The better choice depends on this year's income, next year's and your state.
$2,000
1099-NEC threshold, 2026 payments
Subcontractor 1099s
For payments made in 2026, file a 1099-NEC for each unincorporated subcontractor paid $2,000 or more (it was $600). Forms for 2026 are due February 1, 2027, because January 31 falls on a Sunday.
Can you split service and project work in our books?
Yes. We set up the books so service and contract work report separately, each with its own margin and cash cycle.
Can you work out our burdened labor rate?
Yes. We build it from your payroll, taxes, insurance and benefits, and use it in job costing so bids and margins match.
What does it cost?
Construction packages start at $2,275 a month for businesses under $500K in revenue, plus a one-time onboarding fee. The pricing page shows your starting price in six steps, and your formal quote follows a free call.
How do we get started?
Book a free 30-minute call, or send your details and we will follow up within one business day.
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