Commercial & custom builders
Books and taxes for design-build firms.
Design retainers collected before a shovel hits dirt, a guaranteed maximum price once construction starts, and subcontractors paid on the job. Gus sorts it, an accountant checks every transaction, and you get one number a month.
- From $197 a month
- An accountant on every transaction
- Cancel whenever
May made $22,000. The Hartwell residence design fee closed out, so I moved it from a retainer into earned revenue now that the drawings are done.
- Hartwell design retainerDesign fees
- Castle Ridge GMP drawProgress billing
- Precision Framing LLCSubcontractors
- Revit and Procore renewalSoftware
- 84 LumberMaterials
Why your books are different
Design-build books go wrong in the same four places.
A generalist bookkeeper treats every deposit the same. Your business runs two different jobs at once, a design phase billed like a service and a construction phase billed like a contractor, often for the same client and the same address. When the books blend the two, you cannot tell whether the design work or the build is actually paying you.
-
1
Design fees look like construction income
A $15,000 design retainer for the Hartwell house gets deposited the same way a construction draw does. Lump it in with job revenue and you lose track of how much the design phase itself actually earns before a single stud goes up.
What we doKeeps design fees in their own category, separate from construction draws, so you can see what the design phase earns on its own. -
2
A GMP contract still needs job costing
A guaranteed maximum price of $680,000 on the Castle Ridge remodel does not mean the job is done being tracked. Costs still have to be checked against that number every month, or you find out you are over budget the same week the job wraps.
What we doTracks every cost against the guaranteed maximum price month by month, so an over-budget job shows up early, not at the final walkthrough. -
3
In-house design hours are not job costs
Your staff architect spends three weeks on a set of drawings before a construction contract even exists. If that time never shows up as a cost against the design fee, you cannot tell whether the design work itself is profitable or a loss leader for the build.
What we doFlags design-phase costs separately from build costs, so you know if the drawings alone are worth what you charge for them. -
4
A client walks after the drawings
Sometimes a client pays for design and then takes the plans to another builder for construction. If the design retainer was never booked as earned income on its own, that revenue gets lost in a job that never happened.
What we doBooks the design fee as earned the moment the drawings are delivered, so it counts as income whether or not the build ever starts.
Your categories
The categories Gus keeps for a design-build firm.
Set up once to split design work from construction work, and an accountant checks it every month.
Money in
- Design feesUpfront retainers and hourly design billing, booked as earned once drawings are delivered.
- GMP progress billingDraws against the guaranteed maximum price as construction phases complete.
- Change order billingScope added mid-build, billed and tracked apart from the original contract.
- Construction loan drawsPayments released by the client's lender as inspections confirm progress.
- RetainageThe percentage held back until the punch list closes on the build phase.
Money out
- In-house design laborSalaries for architects and drafters working the design phase.
- SubcontractorsFraming, electrical, plumbing, and finish trades on the build phase.
- Materials and suppliesLumber, fixtures, and finishes bought from suppliers like 84 Lumber.
- Design and project softwareRevit, AutoCAD, and Procore or Buildertrend subscriptions.
- Equipment rentalLifts and excavators rented for the build phase of a job.
- Insurance and bondingProfessional liability for the design side, plus general liability and bonding for the build.
- Permits and plan reviewBuilding permits and plan review fees paid before construction starts.
What we watch for you
- Design margin
What the design phase earns on its own, before a single construction dollar is spent.
- Job margin
Profit on the build phase against the guaranteed maximum price, tracked as the job runs.
- Retainage owed
What has been earned on the build but held back until closeout.
- Backlog
Signed design and construction work not yet finished, a read on the pipeline.
Ask Gus
Things design-build 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.
Because the drawings are done and delivered, the fee counts as earned the moment you handed them over, whether or not the client ever signs a construction contract.
No. The design fee was already booked as income when you delivered the drawings, so it counts whether or not the build ever happens.
It does, and I am tracking it against the design fee so you can see if that phase pays for itself. Worth a look with the accountant if it runs thin project after project.
The tax side
The tax side of a design-build firm.
Most of what goes wrong here is mixing two different kinds of work. Design fees, staff labor, and construction draws each need their own line before the return gets built.
What your return has to get right
Your accountant signs it, so it gets done right the first time.
- Design fees as service incomeDesign retainers are usually earned income the moment drawings are delivered, separate from any construction contract that follows. Booking them correctly keeps the design phase from disappearing into the build phase's numbers.
- Long-term contract incomeConstruction phases that run past one tax year sometimes have to show income as it is earned rather than only when billed. Whether that applies depends on the size of the business and how long the build runs, so Gus flags multi-year jobs for review.
- Equipment and software write-offsDesign software licenses and any equipment the firm owns outright can usually be written off in the year purchased, up to $2,560,000 under Section 179, with 100 percent bonus depreciation for property bought after January 19, 2025.
- Subcontractor 1099sAny subcontractor not on your payroll who is paid $2,000 or more in 2026 gets a 1099-NEC by January 31. Gus keeps that list running through both the design and build phases of every job.
Deductions design-build firms miss
Your bookkeeper knows what to look for in your statements. You never have to.
- Design software licenses
- Professional liability insurance
- Continuing education
- Truck and fleet fuel
- Jobsite trailer rental
- Small tools and hand tools
- Bonding premiums
- Plan review and permit fees
- Job costing software
- Portfolio photography
- Professional association dues
- Home office
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 design-build year, kept every month.
Design contracts and construction contracts land on different timelines. Your team keeps you ahead of the tax calendar through 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 subcontractor 1099 list gets finalized, and you get a monthly set-aside so April is already handled.
- April
Filed. Done.
Your return is filed and signed. No surprise bill, because the set-aside has been running since January across both design and build revenue.
- July
Halfway check
Where you stand on every open design and construction job, and whether this year's client pipeline is ahead of or behind last year's.
- October
Before year end
A look at design software or equipment worth buying, and any moves worth making before December closes the books on the year.
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 design-build firms. 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 design-build owners ask first.
Do you separate design fees from construction income?
Yes. Design retainers are booked as earned income once the drawings are delivered, kept apart from any construction draws that come later, so you can see what each phase of the work actually earns.
What happens on the books if a client takes our plans elsewhere?
The design fee stays booked as income from the day you delivered the drawings. Whether the client builds with you or someone else does not change what you already earned.
Our architect is salaried. Does her time get tracked as a cost?
Yes, against the design fee for whichever job she is working on, so you can see if the design phase of that job is actually paying for the hours it took.
We use a guaranteed maximum price on most builds. Can Gus track costs against it?
Yes. Costs get checked against the guaranteed maximum price every month as the job runs, so an over-budget job shows up early instead of surfacing at the final walkthrough when it is too late to fix.
Our books mix two years of design and construction work. Can you untangle it?
Yes. Send the bank statements and job records you have. Gus sorts income and cost by job and by phase, and most owners know where each project stands within a week.
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 commercial & custom builders
We keep books for the business next door too.
- Barndominium builders
- Church & religious facility builders
- Log home builders
- Shipping container home builders
- Timber frame builders
- Tiny home builders
- Metal building erectors
- Modular & manufactured home dealers
- Post-frame & pole barn builders
- Tenant improvement contractors
- Commercial general contractors
- Acoustical ceiling contractors
- Architectural millwork & woodworking
- Commercial glaziers & storefront glass
- Commercial kitchen equipment installers
- Concrete cutting & coring
- Crane services
- Directional boring contractors
- Elevator installation & service
- Erosion control contractors
- Fire sprinkler contractors
- Hydro excavation
- Land surveying firms
- Parking lot striping & maintenance
- Pond & lake construction
- Private utility locating
- Scaffolding contractors
- Sheet metal contractors
- Waterproofing & caulking contractors
- Drafting & CAD services
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