FEA Randal And Train
Bookkeeping Trial Test Drive
Outsourced Accounting
Contractor Bookkeeping Templates For QuickBooks And Xero
Construction Accounting Academy

    How To Track Income In Your Bookkeeping System

    Posted by Randal DeHart on Tue, Jun 18, 2019

    The one burning question contractors want to know: When is it income?

    When money comes into the business, at some point it turns into income. " Money goes in and out of my business and I don't understand when it is income and when it is not ". Without proper tracking and matching of income and expenses, most construction companies never know if they made a profit until the job is over.

    Workplace with keyboard cup of coffee and graphs-1

    The Diagram Below Shows Five Ways Money Comes In

    1. Job Deposit - Customer signs a contract and gives the contractor a down payment check - (Not Income)
    2. Invoice - Contractor sends customer an Invoice for the work done and the customer pays - (Income)
    3. Loans - Contractor, outside investors, banks loan money to the business - (Not Income)
    4. Refunds - Contractor returns unused material gets money back - (Not Income)
    5. Rebate - Contractor gets a rebate when buying a new truck - (Not Income)

    Money In Fast Easy Accounting

    The Diagram Below Shows Five Ways Money Goes Out

    1. Labor - Payroll and taxes because contractors can get more make good money with qualified labor - (Not Income)
    2. Material - Takes money to make money and you need material to build and repair things - (Not Income)
    3. Other - Costs you need to operate a mobile business like construction - (Not Income)
    4. Subcontractors - Do what you do best and outsource the rest - (Not Income)
    5. Overhead - Everything not directly related to field work - (Not Income)

     Money Out

    The Diagram Below Shows When It Is Income

      1. Invoice - The only time when money coming in is - (Income)
      2. Job Deposit - Applied to an Invoice the money is - (Income)
      3. Customer Payments - Applied to a complex Invoice it is - (Income)
    When Is It Income Fast Easy Accounting


    I hope this quick overview helps answers some of the questions you may have about construction bookkeeping and accounting. This diagram is intended for residential contractors. Commercial contractors Invoicing is a bit more complex

    If you enjoyed this you may want to review the 80/20 Rule and our Cash Flow Diagram

    About The Author:

    QuickBooks-Trainer-Randal-DeHart-PMP-QPA-Fast-Easy-AccountingRandal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor, and QuickBooks For Contractors Expert. This combination of experience and skill sets provides a unique perspective which allows him to see the world through the eyes of a contractor, Project Manager, Accountant and Construction Accountant. This quadruple understanding is what sets him apart from other Intuit ProAdvisors and accountants to the benefit of all of the construction contractors he serves across the USA. Visit http://www.fasteasyaccounting.com/randal-dehart/ to learn more.

    Our Co-Founder Randal DeHart - Is a Certified PMP (Project Management Professional) with several years of construction project management experience. His expertise is construction accounting systems engineering and process development. His exhaustive study of several leading experts including the work of Dr. W. Edward Deming, Michael Gerber, Walter A. Shewhart, James Lewis and dozens of others was the foundation upon which our Construction Bookkeeping System is based and continues to evolve and improve. Check out our Contractor Success Map Podcast on iTunes. 



                                Bookkeeping Trial Test Drive  Contractor Bookkeeping Templates For QuickBooks And Xero

                                Outsourced Accounting  1-800-361-1770


    Download the Contractors APP today from the App Store or Android Store

    Access Code: FEAHEROS

    Click here to download the App on Android:

    Click here to download the App on iOS:

    Simply scan the QR code or search for ‘MyAccountants’ in the App Store and enter the Access code: FEAHEROS to utilize the powerful App features and capabilities, and benefit from having our Construction Accounting App at your fingertips, 24/7."

    PS: Even if you are not a Construction Contractor you will find a plenty of benefits in the app so we invite you to download it too! It's Free so why not?


    Topics: Payment Collect, Contractor, Contractor Tips, finance, Contractor Operating Tips

    QuickBooks Setup And Chart of Accounts For DIY Contractors
    Download Our Free App For Construction Contractors

    click to download the Contractors APP now from the App Storeclick to download the Contractors APP now from the Android store

    Access Code: FEAHEROS

    accounting articles

    Subscribe by Email

    How Can We Help?

    Contractors Bookkeeping And Accounting Services

    Who We Help

    How We Help

    Next Step


    Contractors Bookkeeping And Accounting Services

    Outsourced Construction Accounting Services For Contractors All Across The U.S.A. By Fast Easy Accounting 206-361-3950

    Serving Construction Contractors
    Across The U.S.A
    Including Alaska
    And Hawaii

    Podcast On iTunes
    Click Here To Listen In iTunes
    Contractor  Success M.A.P.
    Contractors Bookkeeping And Accounting Services

    Remote Access Your QuickBooks  Using Secure Servers

    Outsourced Bookkeeping Services For Contractors At Fast Easy Accounting

    Contractors Bookkeeping And Accounting Services

    T Sheets Pro Advisor Fast Easy Accounting

    Mobile Time Cards 

    Eliminate the job site to office paper shuffle

    Start My Free 14 Day TSheets Trial  

    Contractors Bookkeeping And Accounting Services

    Fast Easy Accounting Construction Accounting Specialists Member Of National Association Of Home Builders NAHB

    Contractors Bookkeeping And Accounting Services


    Join Our MBA Network

    Most Popular Posts

    Read the Latest:

    Browse by Tag


    Blog Suggestion Box

    We Remove Contractor's Unique Paperwork Frustrations

    Quickbooks certified proadvisor


    Financial-Intelligence-And-Performance-Reporting-Tool-Fast-Easy-Accounting Hubdoc-Document-Collection-and-Management-System MBA Member Fast Easy Accounting 206-361-3950
    Don't forget, you can hire our services at FastEasyAccounting.com
    How To Use Our Services