Quarterly Bookkeeping Checklist for Spokane Valley Contractors

Every contractor I know in Spokane Valley has the same relationship with bookkeeping: they know they should do it, they definitely don't want to do it, and they usually wait until the absolute last minute when panic sets in.

I get it. You'd rather be framing houses on the South Hill or running electrical through a new development in Liberty Lake than sitting at a desk sorting through receipts. But here's the thing: mess up your quarterly bookkeeping and you'll spend way more time (and money) fixing it later. Trust me on this one.

So let's make this as painless as possible. Think of this as your quarterly dose of financial medicine. It tastes bad going down, but it keeps your business healthy.

Why Quarterly? (Or: The Sweet Spot of Not Too Much, Not Too Little)

You could do your books monthly, but let's be real—you're not going to. You're too busy actually running jobs. You could wait until year-end, but that's how contractors end up in my office with a shoe box full of receipts and a panicked look on their face.

Quarterly is the sweet spot. It's frequent enough that nothing gets too out of hand, but not so often that it becomes another full-time job. Plus, it lines up nicely with quarterly tax payments (yeah, those are a thing you should be doing too).

For Spokane Valley contractors specifically, quarterly bookkeeping makes sense because of how our seasons work. Spring startup, summer rush, fall wind-down, winter planning—your books should reflect these natural business cycles.

The Pre-Game: What You Should've Been Doing All Quarter

Before we dive into the quarterly checklist, let's talk about the stuff that makes quarterly bookkeeping actually possible. If you haven't been doing these things, your quarterly review is going to be rough:

Keep your business and personal expenses separate. I don't care if it's "just this one time" or "I'll pay myself back later." Stop it. Get a business credit card, use it for business stuff only. Same with your bank account.

Save your receipts. All of them. That $8 box of screws from Home Depot? Save it. The lunch you bought your crew? Save it. Gas for the truck? You know the drill. Use an app like Expensify or just take photos with your phone, but save everything.

Track your mileage. Every contractor I know drives constantly—between job sites, to suppliers, meeting clients. That's all deductible mileage, but only if you track it. Get a mileage app or keep a notebook in your truck. The IRS doesn't accept "I drive a lot" as documentation.

The Actual Quarterly Checklist (Let's Do This)

Alright, it's the end of the quarter. Time to face the music. Block out a solid half-day, grab some coffee (or something stronger), and let's get through this.

1. Reconcile Your Bank Accounts

This is fancy talk for "make sure your bookkeeping matches your actual bank balance."

Pull up your bank statements and your bookkeeping software (you are using bookkeeping software, right? Please tell me you're not using Excel). Go through every transaction and make sure it's categorized correctly.

Common contractor mistakes I see:

• Calling equipment purchases "supplies" (they're assets, treat them differently)
• Mixing up job materials for different projects
• Forgetting to record cash transactions (yes, they still count)

2. Update Your Accounts Receivable

Who owes you money? More importantly, who's been owing you money for way too long?

Go through every outstanding invoice. Follow up on anything over 30 days. Send those awkward "just checking in on invoice #1234" emails. I know you hate it, but you know what's worse? Not getting paid.

For Spokane Valley contractors, this is especially important because we all know how some of the big developers and GCs like to stretch payment terms. Stay on top of it, or you'll be financing their project with your cash flow.

3. Catch Up on Expense Tracking

Remember all those receipts you saved? Time to enter them into your books.

Categories that matter for contractors:

• Materials by job (don't just dump everything into "supplies")
• Subcontractor payments (you'll need 1099s for these folks later)
• Equipment and tools (anything over $2,500 might need to be depreciated)
• Vehicle expenses (gas, maintenance, that new canopy for your truck)
• Insurance (liability, workers' comp, vehicle)
• Permits and licenses (every job seems to need three different ones)

4. Review Your Job Costing

This is where you figure out if you're actually making money on your jobs or just staying busy.

For each project you completed this quarter:

• Total revenue from the job
• All direct costs (materials, labor, subs)
• Overhead allocation (yeah, this is a thing)
• Actual profit margin

If you bid a bathroom remodel at 30% margin but only made 10%, you need to know why. Material costs higher than expected? Job took longer? Scope creep? Figure it out now while it's fresh, not six months later when you're bidding the next one.

5. Update Inventory

If you keep materials on hand (and what contractor doesn't have a garage full of "leftover" supplies?), do a quick count. You don't need to count every screw, but know what you've got in significant quantities.

This matters for two reasons: taxes (inventory is an asset) and cash flow (stop buying stuff you already have). I've seen contractors with $10,000 in copper wire sitting in their shop while buying more because they forgot what they had.

6. Payroll Records Check

If you have employees (not 1099 subs, actual W-2 employees), make sure your payroll records are clean:

• All hours accounted for
• Overtime calculated correctly (Washington state has rules, follow them)
• Workers' comp premiums up to date
• L&I payments current

Spokane Valley contractors get audited on this stuff more than you'd think. The state knows construction is a high-risk industry, and they check.

7. Sales Tax Reality Check

Washington's sales tax rules for contractors are about as clear as mud. Different rules for different types of work, different rates for different locations.

Quick reminder on the basics:

• Retail construction (work on existing structures): You pay sales tax on materials, charge labor only
• Speculative building: You're the consumer, pay sales tax on everything
• Government contracts: Whole different set of rules

Make sure you're collecting and remitting correctly. The Department of Revenue does not mess around, and construction is one of their favorite audit targets.

8. Quarterly Tax Payments

If you're making money (and I hope you are), you should be making quarterly estimated tax payments. Federal and state. This is not optional if you want to avoid penalties.

Quick and dirty calculation:

• Look at your profit for the quarter
• Multiply by your tax rate (probably 25-35% all in)
• Send that to the IRS and Washington State
• Cry a little, it's okay

9. Financial Reports Review

Once everything's entered and reconciled, run these reports:

• Profit and Loss (are you making money?)
• Balance Sheet (what do you own vs. owe?)
• Cash Flow Statement (where'd all the money go?)
• Job Profitability Report (which jobs made money?)

Actually look at these. I know they're boring, but they tell you if your business is healthy or headed for trouble.

Red Flags to Watch For

As you're going through your quarterly books, watch for these warning signs:

Cash flow getting tight? Even profitable contractors can run out of cash if receivables get too stretched. Start collecting faster or negotiate better payment terms.

Certain types of jobs consistently unprofitable? Maybe it's time to stop doing those small residential repairs or start charging more for them.

Overhead creeping up? That fancy new truck payment might be eating your profits. Same with that shop space you barely use.

Too much money tied up in inventory or equipment? Dead money is dead money. Sell what you're not using.

Tools That Actually Help

Look, I'm not going to pretend bookkeeping is fun, but the right tools make it suck less:

QuickBooks Online is still the standard. It's not perfect, but it does job costing reasonably well and your accountant knows how to use it.

Receipt scanning apps like Expensify or even just using QuickBooks' mobile app. Snap a photo, throw away the paper, move on with your life.

Mileage tracking apps like MileIQ. Set it and forget it. Way better than trying to reconstruct your drives three months later.

The Spokane Valley Specifics

Being a contractor in Spokane Valley comes with its own quirks:

Seasonal swings are real. Your Q1 books will look way different than Q3. Don't panic in the slow season, but don't go crazy spending in the busy season either.

Different tax rates as you work across the area. Spokane Valley, City of Spokane, unincorporated county—they all have different rates. Track where each job is located.

The developer payment shuffle. We all know certain developers who pay slow. Factor that into your cash flow planning.

Weather delays affect everyone here. Build contingency into your job costing for the inevitable spring rain delays and winter freezes.

When to Wave the White Flag

Some contractors are great at bookkeeping. Most aren't. There's no shame in admitting you need help. Signs it's time to hire a bookkeeper:

• You're more than a quarter behind
• You're losing sleep over your books
• You've been "meaning to catch up" for six months
• You have no idea if you're profitable
• You just got a letter from the IRS or Department of Revenue

A good bookkeeper costs way less than the penalties and interest from screwing this up. Plus, they can usually find enough deductions to pay for themselves. Your future self will thank you when you're not scrambling at year-end or, worse, trying to explain to an auditor why you have no documentation for that $50,000 in expenses.