(818) 806-8131 info@tmtaxadvisors.com 1151 W 5th Street, Azusa, CA 91702
TM Tax Advisors Azusa · California
(818) 806-8131 info@tmtaxadvisors.com 1151 W 5th Street, Azusa, CA 91702 Se habla español

Construction & Trades

Construction & Trades — tax and accounting that fits how you actually operate

Profit hides at the job level. If your accounting stops at the company P&L, you are guessing about which work is worth taking.

What goes wrong

The five things that cost construction & trades businesses money

01

Job-level profitability

A company that is profitable overall can be losing money on a third of its jobs. Without job costing you never find out which third.

02

Worker classification

California's ABC test makes most subcontracted labour look like employment. This is the single biggest audit exposure in the trades.

03

Retention & progress billing

Revenue recognised on percentage of completion behaves nothing like cash, and retention held for months distorts both.

04

Materials & sales tax

Whether you are a retailer or a consumer of materials changes the sales tax treatment — and contractors get this wrong constantly.

05

Equipment decisions

Section 179, bonus depreciation, financing versus leasing — each choice has a different after-tax cost.

What we do about it

How we work with you

  • Job costing set up in QuickBooks so every project shows its own margin
  • Work-in-progress schedules that bonding companies and lenders accept
  • Worker classification reviewed for every crew member and sub
  • Equipment purchase modelling before you sign, not after
  • CSLB, licensing and insurance compliance kept in one calendar

Services

What this usually involves

Bookkeeping & Monthly Close

Reconciled every month, closed on a schedule, and delivered with a short note explaining what changed. Not a shoebox reconstructed in March.

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Payroll & Worker Classification

Running payroll is the easy part. Staying on the right side of the EDD, wage orders, sick-leave accrual and worker classification is where employers actually get hurt.

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Proactive Tax Planning & Strategy

Planning is the part of the work that actually moves the number. We model your year while there is still time to change it — and show you, in dollars, what each decision is worth.

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Business Formation & Entity Structuring

The entity you register and the way it is taxed are two separate decisions. Most people make only the first one, and pay for it every year afterwards.

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Let’s look at your construction & trades numbers.

Bring last year’s return and a month of books. Thirty minutes, no charge, and a straight answer about what we would change.