How do you do accounting for an electrical contractor?

Accounting for an electrical contractor requires tracking material costs (like wire and conduit) and direct field labor to specific jobs. Because material prices fluctuate rapidly, you must compare estimated costs to actual costs to protect your profit margin. Overhead costs like dispatch software and vehicle leases should be tracked separately.

Bookkeeping for Electricians | Atlas Accountants

Electrical contracting is a game of margins and materials. If your bookkeeping is sloppy, the rising cost of copper wire alone can eat your entire profit on a commercial build-out.

The Material Management Problem

Many electricians buy materials in bulk. You might spend $5,000 at the supply house for conduit, boxes, and wire, and then spread those materials across three different residential service calls and one commercial rough-in.

If you just categorize that $5,000 as "Supplies" in QuickBooks, you will never know which of those four jobs was actually profitable. We help you allocate material costs accurately to the exact project.

Labor Tracking: Rough-In vs. Trim-Out

Electrical work often happens in phases. You do the rough-in, wait three months for the drywallers and painters to finish, and then come back for the trim-out.

Progress Billing: We ensure your progress invoices match the percentage of completion.
Retainage: If a general contractor holds back 10% on a commercial job, we track that retainage on your balance sheet so you never forget to collect your final check.
Apprentice Labor: We track your fully burdened labor rates so you know exactly what an apprentice costs you versus a journeyman on a specific site.

Bookkeeping for Electricians