Bookkeeping cost for contractors varies more than most guides admit. That’s because job counts, subcontractors, and retainage all move the number. So here’s a straight answer, followed by the details that actually matter.

What is bookkeeping cost for contractors, on average?

Overall, monthly bookkeeping cost for contractors typically runs $400 to $1,200 a month. Specifically, your number depends on transaction volume, active job count, and whether you use employees or subcontractors. For example, a smaller contractor with one owner and fewer than five active jobs usually pays less. On the other hand, a contractor running multiple crews, subcontractor 1099s, and higher transaction volume pays more.

For comparison, the U.S. Bureau of Labor Statistics puts the median pay for a bookkeeping employee at $49,210 a year, or $23.66 an hour. Use that number, for instance, to compare an outsourced monthly fee against hiring your own in-house bookkeeper.

What drives contractor bookkeeping costs up or down?

Generally, generic bookkeeping quotes skip the factors that actually move your price. Here’s what does, in order of impact:

• Number of active jobs. As a result, more jobs mean more transactions to categorize by job.
• Subcontractors vs. employees. In particular, subcontractor 1099 tracking adds work employees don’t require.
• Bank and credit card accounts. Similarly, multiple accounts, sometimes per job, multiply reconciliation time.
• Retainage. For instance, if general contractors hold retainage on your jobs, you need to track it correctly — not just remember it.
• Job costing setup. Above all, this causes the most confusion about what your bookkeeping service actually covers.

Does bookkeeping cost for contractors include job costing?

Indeed, this is the biggest point of confusion we see. In short, monthly bookkeeping and job costing are two different services.

To begin with, Accounting Freedom’s bookkeeping keeps your books accurate. In practice, we categorize transactions, reconcile accounts, and produce your financials. However, job costing — tracking labor and material cost by job to see profitability per project — happens inside your own QuickBooks Online. In other words, your team runs it, not us.

That said, we help you build that structure correctly in QuickBooks. Even so, you still enter job cost data day to day, on your job sites, in real time. Therefore, if a bookkeeping quote claims to include ongoing job costing, ask who actually enters that data.

What’s included in our contractor bookkeeping services?

First, our Core package starts at $130 a week. Specifically, it covers compliance-only bookkeeping: monthly bookkeeping, your P&L and balance sheet, your federal and state tax return, Illinois and Wisconsin sales tax, and annual 1099s. Notably, that last item matters if you pay subcontractors.

Alternatively, want a Client Advisor actively involved — proactive tax planning, an owner comp review, cash flow conversations? If so, choose Core+, starting at $175 a week. As a result, most contractors who’ve outgrown “just get my books done” land here.

Still not sure which tier fits your business? Either way, take our 7-question package assessment or use the pricing calculator to see real numbers.

What this means for you

Ultimately, question a bookkeeping quote that looks too low for a contractor running several jobs with subcontractors. In particular, ask exactly what it covers — especially 1099s and job-level categorization. Likewise, if a quote claims to include job costing, ask who enters that data. In most cases, firms — including us — expect you to enter it yourself. Instead, we just make sure your QuickBooks setup for contractors doesn’t turn into a headache.

Frequently Asked Questions

Is job costing included in bookkeeping cost for contractors?
No. Instead, your team tracks job costing inside your own accounting software. We help set up the structure, but ultimately, you enter the ongoing job cost data.

Do more subcontractors raise contractor bookkeeping costs?
Yes. Because more subcontractors mean more 1099 tracking and compliance work, that typically raises your monthly fee.

Should I hire an in-house bookkeeper instead of outsourced bookkeeping for contractors?
It depends on your transaction volume and whether you want to manage that role in-house or outsource it. Generally, though, most contractors under $10 million in revenue save money by outsourcing.

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About the Author
Frank Fiore, CPA — President & Visionary, Accounting Freedom
Frank Fiore has spent 20+ years helping small business owners in Illinois and Wisconsin navigate the real cost of running their books — especially contractors juggling job costs, subcontractors, and tight margins. Accounting Freedom serves clients from offices in Mundelein, IL and Grafton, WI.

This article is provided for general informational purposes only and does not constitute tax, legal, accounting, or financial advice. Every business situation is different. Before acting on anything you read here, please consult with a qualified advisor — including, we hope, us. Reach out to Accounting Freedom for guidance specific to your situation.