Remodeling & interiors

Books and taxes for basement finishing contractors.

Egress window permits, a waterproofing sub before framing starts, an HVAC extension, and the flooring that has to handle moisture. Gus sorts every dollar to the job it came from, an accountant checks every transaction, and you get one number a month.

Book a call What we handle
  • From $197 a month
  • An accountant on every transaction
  • Cancel whenever
AprilExample month
$16,000
what you made

April came in at $16,000. The egress window sub for the Dawson job got booked against that project, not this month's overhead.

  • Client draw, Dawson jobProgress draws
  • GreenSky payoutFinanced jobs
  • Egress window subWaterproofing and egress
  • Menards lumber orderFraming and drywall materials
  • HVAC sub, extension runSubcontractors
Money in$58,000
Money out$42,000
Set aside for taxes$3,800
An example month. Yours will have your numbers.

Why your books are different

Basement finishing books go wrong before the framing even starts.

A generalist sees a deposit and a bill. Your job starts with a waterproofing check, then an egress window permit, then framing that has to be moisture-tolerant from the ground up. When the books do not track each basement as its own job, a wet crawl space on one project eats another project's profit on paper.

  1. 1

    A waterproofing sub gets paid before the job even starts

    Before framing begins, you often bring in a sub to install a sump pump or French drain to make sure the space stays dry. That cost lands weeks before the client's first framing draw, and booked as a plain expense it makes the month look worse than it is.

    What we doTies the waterproofing cost to the job it belongs to, so an early sub payment does not read as a bad month.
  2. 2

    An egress window permit changes a job's scope after the bid

    Some basements need a new egress window cut into the foundation for a bedroom to be legal, which was not always priced into the original bid. If that gets absorbed instead of billed, the job's real profit disappears.

    What we doTags egress and permit-driven work as its own change order line, so the extra cost and the extra billing both show up.
  3. 3

    Framing and flooring materials blend into one lump

    Moisture-tolerant subfloor systems, framing lumber, and waterproof flooring all get bought around the same time, and they read as one job cost. You cannot tell if a basement ran over because of framing or because of the flooring upgrade.

    What we doKeeps framing materials and flooring materials in separate lines, so you can see what actually drove a job's cost.
  4. 4

    An HVAC extension sub blends into the general contractor invoice

    Running ductwork into a finished basement is usually subbed out, and its invoice can look like part of your own labor cost if it is not flagged separately, hiding what a mechanical extension really costs you per job.

    What we doKeeps HVAC and other mechanical subs in their own line, separate from framing and drywall labor.
  5. 5

    An insurance-driven job pays differently than a normal remodel

    When a basement job follows a flood, part of the payment can come through an insurance claim check instead of the homeowner directly, and mixing that with a normal draw makes it hard to see what the job actually billed.

    What we doTracks insurance claim payments as their own income source, so you can see the full picture of what a job brought in.

Your categories

The categories Gus keeps for a basement finishing business.

Set up once for how your jobs get paid and what they cost. You never pick a category. He does, and an accountant checks it.

Money in

  • Progress drawsFraming, rough-in, drywall, and final payments on a signed basement contract.
  • Change order billingEgress windows, upgraded flooring, or a bathroom rough-in added mid-job.
  • Financed jobsThe full job amount, with the lender's fee booked as a cost.
  • Insurance claim paymentsChecks tied to a flood or water damage job, tracked apart from a normal draw.
  • RetainageThe final percentage held back until the walkthrough, tracked so it does not get forgotten.

Money out

  • Waterproofing and egressSump pumps, French drains, and egress window subs, tied to the job.
  • Framing and drywall materialsLumber, moisture-tolerant subfloor systems, and drywall for the job.
  • Flooring materialsWaterproof flooring bought for below-grade use, kept apart from framing costs.
  • SubcontractorsElectricians and HVAC subs paid trade by trade.
  • Permit feesPaid to the local building department for egress, electrical, or mechanical work.
  • Dumpster and demo disposalHauling out old materials or flood-damaged debris.

What we watch for you

  • Job margin

    What each basement actually cleared after materials and subs, not just the contract price.

  • Change order value

    How often egress or scope changes get billed instead of quietly eaten.

  • Sub and material split

    Whether an over-budget job ran long on subs or on framing and flooring.

  • Open draws

    Money billed but not yet collected, so a slow-paying job does not become a cash surprise.

Ask Gus

Things basement finishing owners 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.

We had to cut an egress window into the Dawson basement that wasn't in the original bid. I billed $3,200 extra. Where does that go?

I tagged it as a change order on that job, separate from the original contract, so you can see the egress work got billed and paid for.

Part of the Miller job got paid by their insurance company after a pipe burst. Does that count differently?

I booked it as an insurance claim payment tied to that job, so you can see the full picture of what the job brought in, no matter who wrote the check.

Do I owe the HVAC guy who ran the ductwork extension a 1099?

If you paid him $2,000 or more this year and he is not on payroll, yes, by January 31. I have been keeping that list all year so it is ready.

The tax side

The tax side of a basement finishing business.

Most of what trips up this business is timing and labels: a waterproofing sub booked too early, an egress change order buried in the original price, and a trade partner who should get a 1099.

What your return has to get right

Your accountant signs it, so it gets done right the first time.

  • Subcontractor 1099sAnyone not on payroll who you paid $2,000 or more in 2026, like a waterproofing or HVAC sub, gets a 1099-NEC by January 31. Gus keeps the list as the year goes.
  • Employee or subcontractorA framer or drywall hanger who works your schedule and uses your tools usually looks like an employee, not a sub, no matter what the invoice says. Getting this wrong gets expensive, so Gus flags it before it becomes a habit.
  • Tools and equipmentFraming tools, dehumidifiers, and other job equipment can usually be written off the year you buy them. Bonus depreciation is 100 percent for property bought after January 19, 2025.
  • The pass-through deductionMost owner-operators can take up to 20 percent of business profit off their taxable income. It comes out right only when the books track each job correctly all year.

Deductions basement finishing contractors miss

Your bookkeeper knows what to look for in your statements. You never have to.

  • Framing tools and blades
  • Dehumidifiers and job drying equipment
  • Truck fuel and repairs
  • Angi and Houzz Pro lead fees
  • Liability insurance
  • Dumpster and disposal fees
  • Small tool replacement
  • Continuing education and certifications
  • Branded uniforms
  • Phone and tablet for jobsite use
  • Mileage to supply houses
  • Egress window well samples

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 basement finishing year, kept every month.

Wet springs bring flood-driven jobs, and everyone wants extra living space done before the holidays. Gus keeps taxes on their own schedule while that happens. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.

  1. January

    Plan the year

    Last year's return gets started, the subcontractor 1099 list is ready, and you get a monthly set-aside so April is already handled.

  2. April

    Filed. Done.

    Your return is filed and signed. No surprise bill, since the set-aside has been running since January.

  3. July

    Halfway check

    Where you stand, what you will owe, and whether spring's flood-driven jobs changed the number.

  4. October

    Before the holiday push

    Homeowners want the space ready before family visits. Gus looks at any equipment worth buying before December and where the year is landing.

What you get

Starts at$197a month

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 basement finishing contractors. 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 basement finishing owners ask first.

Can Gus handle a job partly paid by an insurance claim check?

Yes. He tracks insurance payments as their own income source tied to the job, so you can see the full picture of what a job brought in, whichever way it got paid.

We had to add an egress window that wasn't in the original bid. Does that mess up the books?

No. Gus tags it as its own change order line, so the original bid and the added work both show up honestly instead of blending together.

Our waterproofing sub gets paid before framing even starts. Does that hurt our monthly number?

It would if it sat as a plain expense. Gus ties it to the job it belongs to, so an early sub payment does not make an unrelated month look thin.

Do I write off a dehumidifier or drying equipment all at once?

Often you can. Equipment bought for the business can usually be deducted the year you buy it, and 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 a few months behind. 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 within a week.

Do I need to track retainage the customer is holding back?

Yes, and Gus does it for you. It gets flagged as money still owed so it shows up when the final walkthrough releases it, instead of getting lost.

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.

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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