Bookkeeping for Contractors: What Makes the Trades Different
Plumbers, electricians, roofers and general contractors don’t run their books like a retail shop — and treating them the same is how deductions and profit get lost. Here’s what trades bookkeeping actually involves.
Job costing
You need to know the true profit on each job — labour, materials and overhead tracked per project, not lumped into one pile. Job costing is the difference between “we’re busy” and “we’re making money.”
HST on materials vs. labour
Charged and claimed correctly, HST on materials and labour keeps every input tax credit in your pocket and keeps you onside with the CRA.
T5018 and WSIB
If you pay subcontractors, you likely need to file T5018 information returns. And WSIB premiums need reconciling so you’re never over- or under-paying. Most generalist accountants miss both.
Vehicles and equipment
Trucks, tools and equipment are deductible through the right CCA classes — done properly, they meaningfully lower your tax.
See our contractor bookkeeping packages →
FAQ
Do contractors need to file T5018? If you’re in construction and pay subcontractors, generally yes. We prepare and file them.
Is HST charged on labour? Generally yes on your services once registered — we make sure materials and labour are handled correctly.
What is job costing and do I need it? Tracking profit per job. If you run multiple jobs, it’s the only way to know which ones actually pay.
Can you handle WSIB? Yes — reconciliation and reporting are built into our contractor packages.
