Remodeling & interiors

Books and taxes for home addition contractors.

Bank construction draws tied to inspections, a foundation sub, an engineer's fee, and a job that runs across a tax year. 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
AugustExample month
$24,000
what you made

August came in at $24,000. The bank released the framing draw on the Osei job after their inspector signed off, so it's booked against that project's schedule.

  • Bank draw, Osei additionConstruction draws
  • Client deposit, Pruitt jobDeposits
  • Foundation sub, Osei jobSubcontractors
  • Structural engineer feeDesign and engineering
  • 84 Lumber orderFraming materials
Money in$92,000
Money out$68,000
Set aside for taxes$6,800
An example month. Yours will have your numbers.

Why your books are different

Home addition books go wrong because the job outlasts the month.

A generalist sees a deposit and a bill. Your job runs for months, gets paid through bank-inspected construction draws instead of a simple invoice, and involves a foundation crew and an engineer before framing even starts. When the books do not track a job across its whole timeline, one addition's numbers bleed into another's.

  1. 1

    Bank draws release on the lender's schedule, not yours

    A construction loan pays out in stages after the bank's inspector signs off on framing, rough-in, and finish work, which rarely lines up with when you actually paid your subs for that stage. A month can look thin right after you covered a big foundation bill, with the matching draw still weeks away.

    What we doTies each draw to the job stage it was for, so a timing gap between paying a sub and getting the bank's release does not read as a loss.
  2. 2

    A foundation and framing job spans a tax year

    A larger addition that starts in October and finishes in March straddles two tax years, and if the books do not track it as one ongoing job, income and costs can land in the wrong year entirely.

    What we doKeeps a running total on longer jobs so income and costs land in the year they belong to, with the accountant weighing in on anything that crosses December 31.
  3. 3

    Engineer and architect fees look like a project loss upfront

    A structural engineer's stamp or an architect's drawings often get paid weeks before a shovel hits the ground, and that upfront cost with no matching income yet can make an early month look like the addition is losing money.

    What we doTies design and engineering fees to the job, so an upfront cost does not read as a loss before the work even starts.
  4. 4

    A foundation sub and a framing sub blend into one number

    Concrete work and framing labor are different trades paid at different points, but if they land in one generic subcontractor bucket, you cannot tell which stage of an addition actually ate the budget.

    What we doKeeps subcontractor costs split by trade and by stage, so you can see where an addition's money really goes.
  5. 5

    Roof and siding tie-ins get billed like new construction

    Matching an addition's roof and siding to the existing house is different work than a fresh build, often needs a specialist, and if it is not tracked apart from framing you cannot see whether tie-in work is running you over on your bids.

    What we doKeeps tie-in roofing and siding work in its own line, separate from the main framing budget.

Your categories

The categories Gus keeps for a home addition 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

  • DepositsCollected at contract signing, before construction draws begin.
  • Construction drawsBank-inspected disbursements released at each stage of the build.
  • Change order billingScope added mid-project, billed on top of the original contract.
  • RetainageThe final percentage held back until the walkthrough, tracked so it does not get forgotten.

Money out

  • Design and engineeringArchitect drawings and structural engineer stamps, tied to the job.
  • SubcontractorsFoundation, framing, roofing tie-in, and finish trades, split by stage.
  • Framing materialsLumber and structural materials for the addition.
  • Permit and impact feesPaid to the local building department for the added square footage.
  • Equipment rentalExcavation, lifts, and scaffolding rented for the job.
  • Dumpster and demo disposalHauling out debris from foundation work and tie-ins.

What we watch for you

  • Job margin

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

  • Draw versus cost timing

    Whether bank draws are keeping pace with what you have already paid out on a job.

  • Sub cost by stage

    Whether foundation, framing, or finish work is where a job's budget is actually going.

  • Change order value

    How much extra scope is landing on top of the original bid, and whether estimates are catching enough of it.

Ask Gus

Things home addition contractors 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.

I paid the foundation sub on the Osei job but the bank hasn't released that draw yet. Why does this month look bad?

I tied that cost to the Osei job's foundation stage, so once the bank's draw lands you will see the full picture, not just this month's timing gap.

The Pruitt job started in November and won't finish until March. Does that mess up my year-end numbers?

I am keeping a running total on that job so its income and costs land in the right year. The accountant will look at anything that crosses December 31.

Do I owe the foundation crew a 1099 this year?

If you paid them $2,000 or more this year and they are 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 home addition business.

Most of what trips up this business is timing across a long job: a draw that lags a cost, a project that spans two tax years, 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 foundation or roofing sub, gets a 1099-NEC by January 31. Gus keeps the list as the year goes.
  • Employee or subcontractorA framer 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.
  • Jobs that cross a tax yearA longer addition that starts in one year and finishes in the next needs its income and costs sorted into the right year. Gus keeps the running numbers, and the accountant decides how a straddling job gets reported.
  • 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 home addition contractors miss

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

  • Excavation and lift rental
  • Truck fuel and repairs
  • Structural engineer fees
  • Liability insurance
  • Bonding costs
  • Dumpster and disposal fees
  • Tool and equipment replacement
  • Continuing education and certifications
  • Branded uniforms
  • Phone and tablet for jobsite use
  • Mileage between job sites
  • Job trailer or portable storage rental

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 home addition year, kept every month.

Additions run long and sometimes cross the calendar. Gus keeps taxes on their own schedule while the job runs its course. 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 a job that spans the year end is being tracked the right way.

  4. October

    Before year-end

    Gus looks at whether equipment worth buying before December makes sense, and how any straddling jobs are shaping up.

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 home addition 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 home addition contractors ask first.

Can Gus track bank construction draws instead of a simple invoice?

Yes. He ties each draw to the job stage it was released for, so a lag between paying a sub and the bank's inspection sign-off does not read as a bad month.

My addition job started in November and finishes after the new year. How does that get handled?

Gus keeps a running total on the job so income and costs land in the year they belong to. The accountant weighs in on how anything crossing December 31 should be reported.

Do I need to separate my foundation sub from my framing sub?

It helps a lot. Gus keeps subcontractor costs split by trade and stage, so you can see where a job's budget is actually going instead of one blended number.

Do I write off excavation or lift rental?

Rental equipment is usually a direct cost of the job it was rented for, and Gus keeps it tied there. Larger equipment you buy outright is a separate conversation the accountant can walk through with you.

My books are behind from a long job. 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 or bank 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