Strategic Accounting LLC

06/10/2026

Construction can be a profitable business, but there are a few things about the industry that can make managing profit and cash flow difficult.

Every job is a little different, costs don't always come in exactly as estimated, employees may move between projects, and customer payments don't always arrive exactly when you need them. A profitable job can still leave the business tight on cash if the timing doesn't line up.

Here’s a simple overview of a few of these common issues and a ways to prepare for them.

Link: https://strategic.accountants/blog/construction-cash-flow-profit/

16/09/2026

If you’re a contractor or construction business owner taxed as an S Corporation and you’re paying for your own health insurance, make sure you’re getting the tax benefit you’re entitled to.

We've put together a simple guide on how the deduction works, how it should be handled through the business and payroll, and a few things to watch out for.

How S corporation contractors get the health insurance deduction in 2026: run premiums through payroll, watch the earned-income cap, and mind family attribution.

08/09/2026

If you run a construction or contractor business and handle estimates, scheduling, bookkeeping or other admin work from home, a qualifying home office may be worth more than just the home-office deduction itself.

If you're interested, here's a simple overview of how the home-office rules work for business owners, a possible bonus on your mileage, and a few things to keep in mind if your business is an S Corporation:

How a qualifying home office lets a contractor deduct part of the house and, more valuably, turn the daily drive to the jobsite into business mileage.

01/09/2026

September 15 is coming up, and there are two federal tax deadlines construction and contractor business owners may need to keep in mind. They are:

Your third-quarter estimated tax payment.
The second is the deadline for extended S Corporation and partnership tax returns.

If either one applies to you, now is a good time to make sure your payment is scheduled and your tax preparer has everything they need. If you'd like more information, we put together a simple overview here:

https://strategic.accountants/blog/september-15-tax-deadlines-contractors/

26/08/2026

If you run a construction company with projects that last several weeks or months, you know the cash in your bank account doesn't always tell you how those jobs are actually doing.

A Work-in-progress (WIP) schedule compares how far along each job is with how much you've billed.

If you have a few minutes and are interested, here's a simple overview of how WIP works and what construction business owners can be watching for:

A simple overview of how a WIP schedule helps construction companies understand project progress, overbillings, underbillings, and future cash needs.

29/01/2026

Quick January reminder: if your business paid contractors (or other vendors) for services this past year, you may need to send them a 1099.

What’s a 1099-NEC?

The most common one for small businesses is the 1099-NEC (“Non-Employee Compensation”). Think of it like a yearly summary of what you paid a contractor or vendor (outside of payroll) for services.

First step: make sure you have a W-9

If you pay contractors, the best practice is to collect a W-9 before you pay them. But if you didn’t, no worries - it’s not too late to request W-9s now so you can file correctly.

Not sure if someone needs a 1099?

The rules can get a little confusing (and there are a few exceptions). If you’re unsure whether a vendor should get one, check with your tax professional or bookkeeper.

Filing the 1099:

If your business files more than 10 informational returns, you may be required to e-file rather than paper file the returns. Either way, e-filing is usually faster and easier.

Distributing the 1099s:

In addition to filing, you’re required to send a copy to the vendor. Many businesses still mail these (”snail mail”). You can e-deliver if you have the vendor’s’ consent, and some businesses do both to play it safe.

Deadline reminder: The deadline to send and file 1099s is January 31, 2026 — just a few days away. Penalties can be issued per form for a failure to file. As a tip, it’s important to file late rather than ignore the filing requirements.

17/09/2025

How Contractors Can Use Bonus Depreciation + Section 179

When running a $1M–$5M construction company, new trucks, tools, and equipment are part of your business. While they can be expensive, there are some nice tax benefits.

With the newly reinstated 100% bonus depreciation, you can:

✅ Deduct the full cost of equipment in year one
✅ Expense qualifying trucks and vehicles immediately
✅ Improve cash flow and free up money for growth

Section 179 got a boost too, with a new $2.5M annual limit (phasing out at $4M). While most contractors will use bonus depreciation first, Section 179 can still help when you want to expense specific items without applying bonus depreciation to the entire asset class.

Example: Let's say you:

Buy a $50K truck, but don't want full bonus depreciation this year.
Buy $8.8K in heavy tools that qualify for a 5-year property life.

You can use Section 179 on the tools while spreading the truck deduction.

💡 Important tip: If you operate as an S Corp and finance equipment, talk to your accountant about your "basis" and plan for this. Taking bonus depreciation without planning could create unexpected tax issues.

Bonus depreciation + Section 179 can produce nice tax benefits in 2025, but planning is key. Work with your accountant before making big purchases to maximize savings.

15/09/2025

What is 100% Bonus Depreciation?

🚜 Thinking about buying new equipment, trucks, or tools for your contracting or construction business?

Here's some good news for 2025: The One Big Beautiful Bill Act (OBBBA) restored 100% bonus depreciation for most business property with a recovery period of 20 years or less.

That means you can deduct the entire cost of qualifying assets in the year you put them into service—rather than spreading it out over several years.

What typically qualifies?
Heavy equipment, jobsite tools
Certain vehicles that meet IRS rules
Computers and office equipment

⚠️ Timing matters: If you signed a binding contract before Jan. 20, 2025, that property may not qualify for the new 100% rate—even if you place it in service later.

This is one of the most powerful tax-saving tools available to contractors right now. But keep the whole picture in mind - don't buy equipment you don't need JUST to save on taxes. Depending on your tax bracket, you'd get a 37% deduction at best, so you'd still be worse off. Talk with your accountant or tax preparer before making significant purchase decisions, to see what makes the most sense for you!

10/09/2025

Regular job costing lets you know which projects are profitable and which need adjustment - before it's too late.

Here's an example of how job costing works in practice:

Example: A rooftop unit swap

Labor: 32 hours x $30/hr = $960 → with taxes/benefits = $1,200
Materials: Unit, rentals, misc. = $8,800
Overhead: 5% allocation = $1,000
Total Job Cost = $11,000

If your contract price is $16,000 → that's a $5,000 profit (31% margin).

Without applying overhead, you'd miss the true profitability.

What are the key benefits?
Staying on target – When doing job costing regularly, you'll catch overruns early and issue change orders in time.
Controlling costs – When managers know and track the budget, it will help reduce waste.
Improving bids – Importantly, you can use this information from past jobs to sharpen future pricing.

What are some of the benefits you've noticed when doing job costing?

08/09/2025

What is Job Costing?
When finishing a job, have you ever wondered if you really made money on it?

That’s where job costing comes in.

Job costing tracks every dollar tied to a project so you know its true cost and profit margin. It groups costs into three buckets:
Labor: In-house wages + subcontractors
Materials: Job-specific materials + equipment
Overhead: A portion of your business overhead applied to the job

The formula is simple:
👉 Total Job Cost = Labor + Materials + Overhead Allocation

Compare that number to your contract price, and you’ll see your real profit margin.

For contractors doing $1M–$5M in revenue, job costing helps you:
✅ Price with confidence
✅ Control labor and material costs
✅ Prevent profit leaks from estimate to close-out

Bottom line: If you’re serious about profitability, job costing is your best tool to track it.