Outdoor living & structures
Books and taxes for backyard office and ADU builders.
Deposits, staged draws across months of permitting and construction, electrical and plumbing hookups, and a prefab kit or full custom build. Gus sorts all of it, an accountant checks every transaction, and you get one number a month.
- From $197 a month
- An accountant on every transaction
- Cancel whenever
June came in at $22,000. The permit and plan review fees for the Okafor ADU went in against that job, not general overhead.
- Draw 1, Okafor ADU permittingProgress draws
- Final payment, Sundberg backyard officeFinal payments
- Studio Shed prefab kitPrefab kits
- City plan review and permit feesPermits and plan review
- Riverside Electric hookup subUtility hookup subs
Why your books are different
ADU and backyard office books go wrong in the same four places.
A generalist sees deposits and material bills. Your business waits months on permitting before a foundation is even poured, runs electrical and plumbing hookups to a structure that needs its own utility connection, and builds both prefab kits and full custom units. When the books do not separate that, you cannot tell whether a job's price actually covered what it took.
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1
Permit and plan review costs get buried in overhead
An ADU or backyard office often needs full plan review and permitting, sometimes taking months and costing far more than a typical patio or deck permit, and if it is filed as a small general expense, the real cost of getting approved disappears from the job's numbers.
What we doBooks permit and plan review costs against the job they belong to, so the true cost of approval is part of that job's numbers. -
2
A months-long permitting wait makes an early draw look thin
A draw collected for permitting and design work can sit for months before construction even starts, and if the whole draw is counted as profit right away, the slow early stage of the job looks stronger than the work actually done.
What we doTracks each draw against the stage of work it paid for, so a permitting-heavy early period does not distort what the job has actually earned. -
3
Utility hookup subs blur into general construction labor
Running electrical, water, and sewer to a standalone structure needs licensed subs, and if that cost is lumped in with the framing crew's pay, the owner cannot see how much of the job is licensed trade work versus construction labor.
What we doKeeps utility hookup subcontractor costs in their own category, tagged to the job, separate from crew wages. -
4
Prefab kits and custom builds get costed the same way
A prefab kit from a company like Studio Shed and a fully custom-framed ADU use very different amounts of material and labor, but when both get logged under one general construction category, the owner cannot tell which build type actually pays better.
What we doTags material and labor costs to the job and the build type, so prefab margin and custom build margin show up separately.
Your categories
The categories Gus keeps for a backyard office and ADU builder.
Set up once for how you get paid and what you spend. You never pick a category. He does, and an accountant checks it.
Money in
- Job depositsCollected at contract signing, tracked against the job it belongs to.
- Progress drawsPayments collected at permitting, foundation, framing, and finish milestones.
- Final paymentsPayment collected once the unit passes final inspection.
- Financed jobsThe full job amount, with the lender's cut booked as a fee.
- Change ordersAdded square footage or finish upgrades billed separately.
Money out
- Prefab kitsStudio Shed or similar prefabricated unit packages.
- Framing lumberLumber for custom-built units, separate from prefab kits.
- Permits and plan reviewCity plan review, permit fees, and inspection costs.
- Utility hookup subsLicensed electricians and plumbers running service to the unit.
- Foundation and site workExcavation, footings, and slab work.
- Lead fees and marketingHouzz, Angi, and Google local services ads.
What we watch for you
- Permit cost per job
How much permitting and plan review actually adds, so it stays priced into every bid.
- Prefab versus custom margin
How prefab kit jobs compare to full custom builds, so you know which to sell more of.
- Jobs in progress
Draws collected against permitting or construction not yet done, so a slow permitting stretch does not look like a loss.
- The set-aside
What you will owe, tracked every month, so April is a number you already knew.
Ask Gus
Things ADU builders ask Gus.
Text him like you would text anybody. He answers in plain English, and when a question is above his pay grade, an accountant looks and gets back to you.
Yes, and that is correct. I am tracking it against the permitting stage of the job, so it does not count as profit before construction actually starts.
The Sundberg backyard office closed out this month. Prefab jobs move faster than custom ADUs, so a month with one finishing tends to carry harder.
If you pay him $2,000 or more this year and he is not on payroll, he gets a 1099 by January 31. I keep that list running.
The tax side
The tax side of a backyard office and ADU business.
Most of what goes wrong here is timing across a long, permit-heavy job. A permit fee buried in overhead, a draw counted before its stage is done, and a set-aside nobody started until April.
What your return has to get right
Your accountant signs it, so it gets done right the first time.
- Equipment write-offsExcavation equipment, trailers, or shop tools bought for the business can usually be written off in the year you buy it. Bonus depreciation is 100 percent for property acquired after January 19, 2025.
- Contractor 1099sAnyone not on payroll paid $2,000 or more in 2026, like an electrician or plumber sub, gets a 1099-NEC by January 31.
- Self-employment taxAn owner not on payroll pays 15.3 percent self-employment tax on profit, up to the $184,500 Social Security wage base.
- The pass-through deductionMost owner-operators can take up to 20 percent of business profit off their taxable income. It comes out right when the books are right all year.
Deductions backyard office and ADU builders miss
Your bookkeeper knows what to look for in your statements. You never have to.
- Excavation and foundation equipment rental
- Plan review and permit fees
- Truck and trailer fuel
- Houzz and Angi lead fees
- Uniforms with your logo
- Tools that live on the truck
- Phone and tablet for job sites
- Trade licenses and bonding
- Card and financing fees
- Job photo software
- Architectural drawing costs
- Truck wraps and yard signs
General information about 2026 federal rules, not advice for your business. Your accountant looks at your actual numbers before anything gets filed.
All year, not just April
A backyard office and ADU year, kept every month.
A permit-heavy job can run months before construction even starts, so a season's income often lands well after the job that earned it. Your taxes come on a schedule either way. Your team keeps you ahead of both. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.
- January
Plan the year
Last year's return gets started, the 1099 list is ready, and you get a monthly set-aside so April is already handled.
- April
Filed. Done.
Your return is filed and signed before spring deposits start coming in for the season ahead.
- July
Halfway check
Where you stand, what you will owe, and how permit and utility hookup costs compared to what you priced.
- October
Before the season slows
A look at any equipment worth buying before winter, and anything worth doing before December.
What you get
What you pay depends on what your business needs, and it does not move after that, busy season or slow. No hourly bills, no surprise invoices, no setup fee.
Book a call- Monthly bookkeeping
Every transaction sorted into categories set up for backyard office and ADU builders. You never categorize a thing.
- An accountant checks every transaction
Real review, every month, before your books close. Not a spot check.
- Your business tax return, filed
Prepared, reviewed, and signed by that same accountant every year.
- The monthly number
What you made, what you spent, what to set aside for taxes.
- Your own bookkeeper
A real person assigned to your business, in the app whenever you need them. No hold music.
- On your books all year
Every month, not just in April. Your team speaks up whenever something is worth your attention.
- Cancel any time
No contract. No cancellation call. Your books are yours.
Straight answers
Questions ADU builders ask first.
Can Gus handle jobs paid through financing companies?
Yes. He books the full job as money in and the lender's fee as a cost, so your sales are not understated and the fee still counts against your taxes.
I run draws and scheduling in Buildertrend. Do I have to change how I work?
No. Keep running jobs the way you do. Gus works from your bank statement, and when a draw or payout is unclear he asks you once and remembers the answer.
Do I write off excavation equipment all at once?
Often, yes. Business equipment can usually be deducted in the year you buy it, though sometimes spreading it out is the better call. Gus flags the purchase and the accountant decides with your whole year in view.
My books are behind from last season. Is that a problem?
No. Send the bank statements you have. Gus sorts them, the accountant checks them, and most owners know where they stand inside a week.
How does Gus handle a job stuck in permitting for months?
He tracks each draw against the stage of work it paid for, so a long wait for approval does not make an early month look stronger than the work actually done.
Do you handle sales tax on the materials and kits I buy?
No. Sales tax on materials and contracts varies by state and Gus does not file it. He keeps your books clean so whoever files your sales tax has accurate numbers to work from.
Is a real accountant checking my books?
Yes. You get your own bookkeeper, Gus does the first pass on every transaction, and an accountant checks every one before your month closes. That same accountant prepares, signs, and files your business return. Goatkeeper is not a CPA firm, and we never pretend a person looked when they did not.
What does it cost, and can I cancel?
It starts at $197 a month, depending on what your business needs. No setup fee, no hourly bills, no contract. Cancel any time from the app, and your books go with you.
More in outdoor living & structures
We keep books for the business next door too.
- Chicken coop & backyard farm structure builders
- Dock & boathouse builders
- Gazebo & pavilion builders
- Outdoor audio & TV installers
- Playground & swing set installers
- Putting green installers
- Retractable screens & motorized shades
- Seawall & bulkhead contractors
- Sport court builders (pickleball, basketball)
- Artificial turf installers
- Decorative & stamped concrete
- Fire pit & outdoor fireplace builders
- Outdoor kitchen builders
- Patio cover & awning companies
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- Pool resurfacing & repair
- Retaining wall contractors
- Screened porch & sunroom builders
- Storage shed builders & dealers
- Concrete flatwork contractors
- Deck builders
- Driveway paving & sealcoating
- Epoxy & polyaspartic garage floor coatings
- Fence installation companies
- Fiberglass pool installers
- Hardscaping & paver installers
- Hot tub & swim spa dealers
- Pool service & cleaning
- Custom pool builders
- Cedar shake roofing specialists
What makes a bookkeeper worth paying for Every business we keep books for
Book a call
Pick a time. That's the whole signup.
Fifteen minutes with a real person on our team. They look at where your books are, tell you straight what it takes to get caught up, and get you set up on the spot if it fits.
- $197 a month to start
- An accountant on every transaction
- Cancel whenever