Common Questions
Answers to questions small business owners ask about bookkeeping, financial planning, and working with us. Don't see yours? Reach out.
How do landscapers track job costs in QuickBooks?
Turn on Projects in QuickBooks Online and assign every expense and labor entry to a specific job when it happens. Material receipts should be captured and coded at the time of purchase, not batched weeks later.
Read answerWhat's the best way to track equipment and fuel costs for a landscaping company?
Equipment over $2,500 gets capitalized and depreciated as a fixed asset. Smaller tools are expensed immediately. Fuel is best tracked per truck or crew using fuel cards that feed into your accounting software for job-level cost allocation.
Read answerHow should a roofing contractor handle storm/insurance jobs vs retail jobs?
Track insurance and retail jobs as separate revenue streams using distinct income accounts or classes. Insurance work has a unique payment structure with ACV and RCV supplements that requires careful accounts receivable tracking to see true profitability.
Read answerDo I need to 1099 my subcontractors as a roofer?
Yes, in most cases. Any individual or single-member LLC you paid $600 or more via check or ACH during the year needs a 1099-NEC. Corporations are generally exempt.
Read answerHow do I price landscaping jobs to stay profitable?
Start with your actual cost per crew-hour, including overhead, then price to hit a 30-40% gross margin. Without job costing data, most landscapers are guessing at prices and finding out too late which jobs lost money.
Read answerWhat expenses can a pest control business deduct?
Most of what you spend running a pest control business is deductible. Chemicals, vehicle costs, equipment, licensing, insurance, and uniforms all count. The key is tracking them properly and knowing which expenses get deducted immediately versus capitalized.
Read answerHow should a pool service company track recurring vs project revenue?
Set up separate service items and income accounts for recurring maintenance and one-off repair or install work. This lets you report monthly recurring revenue independently, which matters for forecasting and business valuation.
Read answerHow do I handle material markups in QuickBooks for a landscaper?
Set up products and services items in QuickBooks Online with both a cost and a sales price. When you add those items to invoices, QBO tracks the cost and revenue separately so your gross margin reports stay accurate.
Read answerWhat's the difference between direct costs and overhead for a roofing company?
Direct costs are expenses tied to a specific job like shingles, crew labor, dump fees, and subcontractors. Overhead covers what you pay whether you have jobs on the schedule or not, like office rent, insurance, and admin wages. Accurate classification is what makes job costing and pricing reliable.
Read answerHow do seasonal landscapers manage cash flow in winter?
The best approach is planning for winter during your busiest months. Reserve a percentage of peak-season revenue, explore annualized billing, and build a cash flow forecast so there are no surprises.
Read answerShould a landscaping business use cash or accrual accounting?
Most landscaping businesses do well on cash basis accounting. It's simpler, widely accepted, and works especially well for maintenance-focused operations with short billing cycles. Accrual becomes worth considering when you regularly take on large installation projects that span multiple weeks or months.
Read answerWhat are common bookkeeping mistakes for roofing contractors?
Roofing contractors commonly mix storm and retail revenue together, pay subcontractors without collecting W-9s, miss dump fees in job costing, and fail to reconcile merchant deposits correctly. These mistakes distort job profitability, create tax compliance issues, and make it harder to understand where your money is actually going.
Read answerHow do I track crew labor costs for job profitability?
Use a time-tracking tool like QBO Time so crews clock into specific jobs. Then load the full labor burden including payroll taxes and workers' comp onto those hours so your job profitability reports reflect what labor actually costs you.
Read answerHow are workers comp premiums handled for a landscaping company?
Workers' comp for landscaping is classified as high-risk, so rates are higher than most industries. Premiums are based on estimated gross payroll and trued up at year-end audit. The right bookkeeping approach is to accrue the expense monthly based on actual payroll rather than just recording premium payments.
Read answerHow should I categorize dump and disposal fees for a roofer?
Dump and disposal fees are a direct job cost and belong under Cost of Goods Sold, assigned to the specific job. This keeps total disposal cost visible per project, which matters because tear-off complexity can swing these costs dramatically.
Read answerShould I pay my cleaners as W-2 employees or 1099 contractors?
For most cleaning businesses, your cleaners should be classified as W-2 employees. If you set schedules, provide supplies, and direct how the work gets done, the IRS considers them employees regardless of what you call them on paper.
Read answerHow do I track recurring cleaning contracts in QuickBooks?
Use recurring invoices for each contract and set up classes or customer types to separate monthly contract revenue from one-time jobs. This gives you a clear view of your monthly recurring revenue.
Read answerDo I need to issue 1099s to cleaning subcontractors?
Yes, if you paid a subcontractor $600 or more during the year via check, cash, or ACH and they aren't incorporated. Collect a W-9 from every subcontractor before you pay them the first time.
Read answerHow do I calculate gross profit margin on a janitorial contract?
Subtract your direct costs (labor, supplies, travel, and equipment depreciation) from the contract revenue, then divide by revenue. Most janitorial operators target 30-40% gross margin to cover overhead and leave room for profit.
Read answerWhat cleaning supplies should be inventoried vs expensed?
Almost all cleaning supplies should be expensed when you buy them. They're consumable, relatively inexpensive, and used quickly. The only exception is a large bulk purchase near year-end that represents a material amount of product you'll use in the following year.
Read answerHow do residential cleaners handle customer deposits?
Customer deposits are liabilities, not revenue. Record them in an unearned revenue account when you collect the money, then move the amount to revenue only after the cleaning is completed.
Read answerHow should a pressure washing business handle equipment financing?
Financed equipment goes on your balance sheet as a fixed asset with a matching loan liability. Each monthly payment gets split between interest expense and principal paydown, and depreciation is recorded separately.
Read answerWhat's the best chart of accounts for a residential cleaning business?
Split revenue by service type, separate direct costs like labor and supplies from overhead, and keep your operating expenses specific enough to spot trends. This structure lets you see true margins by service line.
Read answerHow do I track employee mileage for a mobile cleaning business?
It depends on whether employees drive personal vehicles or company vehicles. For personal vehicles, use a mileage tracking app and reimburse at the IRS standard rate. For company vehicles, track actual expenses per vehicle using fuel cards and maintenance logs.
Read answerWhat bookkeeping do I need for bonding and insurance in a cleaning business?
Bond and insurance premiums should be recorded as prepaid expenses and spread across each month of coverage. You also need to track certificates of insurance by client so you know what's expiring and when.
Read answerAre cleaning services subject to Wisconsin sales tax?
Most cleaning services in Wisconsin are taxable. This includes commercial janitorial work, residential house cleaning, carpet cleaning, window washing, and pressure washing. You need a seller's permit and must collect and remit sales tax.
Read answerHow do I allocate supplies across multiple cleaning jobs?
For standard cleaning supplies, per-job allocation usually isn't worth the effort. Expense them as a general direct cost. Only track supplies to specific jobs when you're using specialty products where the cost is significant enough to affect job profitability.
Read answerHow do property management companies handle owner funds vs operating funds?
Owner funds must be held in a separate trust or escrow account and tracked individually by property. Operating funds like management fees and markups go to the company's own operating account. Commingling the two is illegal in most states, including Wisconsin.
Read answerWhat's the right bookkeeping structure for a building maintenance company?
Separate revenue by contract type (monthly service, on-call, project), track direct labor and materials per contract, and make sure work orders flow into your job costing. Recurring contracts should be clearly visible as monthly recurring revenue.
Read answerHow do security service companies track guard labor across clients?
Guards clock into specific client sites using mobile time tracking, and those hours flow into your books as client-level labor costs. This makes margin per account visible and keeps overtime from quietly eating your profits.
Read answerShould a property management company use trust accounting software with QuickBooks?
Yes. Dedicated property management software like Buildium or AppFolio handles owner trust ledgers that QuickBooks Online wasn't built for. Monthly summaries from that system flow into QBO for your operating company financials.
Read answerHow do I track profitability by building maintenance contract?
Set up each contract as a project or sub-customer in QuickBooks Online. Allocate direct labor and materials to the contract while keeping shared overhead at the company level. Monthly gross margin per contract tells you which deals are worth renewing.
Read answerWhat expenses can a security services company deduct?
Security companies have a wide range of deductible expenses including uniforms, firearms, licensing fees, vehicle costs, insurance premiums, and guard management software. Many of the industry-specific deductions are significant and often overlooked.
Read answerHow do I handle holdbacks or retainage in a facility services contract?
Track retainage in a separate receivable account so it doesn't distort your AR aging. Recognize the revenue when you earn it, but don't expect to collect the held-back portion until the contract terms trigger its release.
Read answerHow do I reconcile a property management escrow account?
Use a three-way reconciliation each month where your adjusted bank balance, the sum of all owner and tenant ledger balances, and your general ledger trust liability must all equal the same number. Any variance needs to be found and resolved immediately.
Read answerHow does IOLTA trust accounting work for a Wisconsin law firm?
IOLTA pools client funds that are too small or short-term to earn individual interest. The pooled interest goes to the Wisconsin Trust Account Foundation for legal aid. Firms must keep client-matter ledgers, never commingle funds, and reconcile monthly.
Read answerWhat's three-way reconciliation for a law firm trust account?
Three-way reconciliation means comparing the bank statement balance, the trust account book balance, and the total of all individual client ledger balances. All three numbers must match at the end of every month. Wisconsin SCR 20:1.15 requires attorneys to perform and document this process.
Read answerCan law firms deduct credit card processing fees from client trust funds?
No. Credit card processing fees are a firm expense and must be paid from the operating account. Deducting fees from IOLTA or any client trust account is a trust accounting violation.
Read answerHow long do Wisconsin law firms need to keep trust account records?
Wisconsin Supreme Court Rule 20:1.15(f)(5) requires at least six years. Covered records include bank statements, cancelled checks, deposit slips, client ledgers, and three-way reconciliation reports.
Read answerHow do architects track billable hours vs project costs?
Most architecture firms use phase-based billing that maps to standard project phases. Tracking hours against each phase and comparing them to the agreed fee is what reveals whether a project is actually profitable.
Read answerShould an engineering firm use project-based or hourly billing?
It depends on how well-defined the scope is. Fixed-fee billing works best for repeatable deliverables with clear boundaries, while hourly billing protects you on open-ended or consulting work. Most engineering firms use both.
Read answerHow do I handle unbilled work (WIP) for a professional services firm?
WIP is work you've performed but haven't invoiced yet. For accrual-basis firms, it sits on the balance sheet as an asset and draws down when invoices go out. Tracking it properly is the only way to see true monthly performance.
Read answerWhat's the best way to track client retainers for a law firm?
Client retainers go into your IOLTA trust account and are recorded as a liability until earned. Track each retainer by client, then move funds to your operating account only after you've billed against the matter and the fees are earned.
Read answerHow do small law firms handle cost advances vs expenses?
Client cost advances like filing fees and expert witness payments are not firm expenses. They are client receivables that sit on the balance sheet until the client reimburses the firm.
Read answerHow do surveyors depreciate field equipment like GPS and total stations?
GPS units, total stations, and similar survey equipment are typically capitalized and depreciated over 5 years using MACRS. Section 179 lets you expense the full cost in year one if that makes more sense for your tax situation.
Read answerHow should an architecture firm handle subcontractor/consultant costs?
It depends on whether you pass consultant costs through at cost, mark them up, or absorb them in your fee. Each method hits your P&L differently, and the bookkeeping has to match the contract structure or your margins won't mean anything.
Read answerWhat are the most common bookkeeping mistakes law firms make?
Trust accounting errors top the list, including commingling funds, skipping three-way reconciliation, and paying firm expenses from IOLTA. Operational mistakes like ignoring unbilled WIP and mis-categorizing cost advances quietly hurt profitability.
Read answerHow do marketing agencies track profitability by client?
Assign billable labor, contractor costs, and pass-through expenses to each client or project in QuickBooks Online. Keep shared overhead at the company level. Quarterly profitability reports then show which clients actually drive your margins.
Read answerHow should a marketing agency handle retainer vs project revenue?
Retainer payments are deferred revenue until you deliver the work each month. Project revenue is recognized as deliverables are completed. Use separate income accounts for each so you can see your real revenue mix.
Read answerHow do agencies account for media pass-through spend (ads)?
Book ad spend at full value, either as a reimbursable expense billed at cost or as revenue with matching COGS if you mark it up. Never book the net amount only. Gross reporting matters for revenue recognition and financial accuracy.
Read answerWhat are the best bookkeeping practices for a photography business?
Use a dedicated business bank account and credit card, track camera gear as depreciable fixed assets, log mileage for every shoot, and record client deposits as deferred revenue until the work is complete.
Read answerHow do I handle client deposits for a video production company?
Client deposits are recorded as unearned revenue on the balance sheet, not as income. They get recognized as revenue only when the work is actually delivered or project milestones are completed.
Read answerShould a small agency owner pay themselves a salary or draw?
It depends on how your LLC is taxed. If taxed as a sole proprietorship, you take owner's draws. If taxed as an S-Corp, you pay yourself a reasonable W-2 salary first, then take additional distributions to save on self-employment taxes.
Read answerHow do freelancers and small creative agencies handle estimated taxes?
Freelancers and creative agencies pay estimated taxes quarterly on April 15, June 15, September 15, and January 15. Most solo owners reserve about 30% of net income and use either prior year liability or current year projections to calculate each payment.
Read answerWhat photography equipment can be expensed vs depreciated?
Items costing $2,500 or less can be fully expensed under the de minimis safe harbor. Above that threshold, equipment is typically depreciated over five years unless you elect Section 179 to deduct the full cost in year one.
Read answerHow do creative agencies track time-to-budget on fixed-fee projects?
Agencies assign budgeted hours to each project, then use time tracking tools like Harvest or Toggl to log actual hours against that budget. Setting an alert at around 80% burn gives you time to re-scope or flag an overrun before the project eats into your margin.
Read answerHow do I separate business and personal expenses as a solo photographer?
Open a dedicated business checking account and credit card, then run every business expense through those accounts exclusively. Mixed-use items like your phone, vehicle, and home office need documented business-use percentages.
Read answerHow should a restaurant handle daily sales entry in QuickBooks?
Enter one daily sales summary from your POS Z-report instead of individual transactions. Break out taxable sales, non-taxable sales, comps, sales tax collected, and payment types so everything ties to your bank deposits.
Read answerWhat's prime cost and why does it matter for a restaurant?
Prime cost is your food cost plus your total labor cost, including payroll taxes and benefits. Most restaurants should target 60 to 65 percent of sales. Tracking it weekly helps you catch problems before they eat into your profit.
Read answerHow do restaurants track COGS for food and beverage separately?
Restaurants use separate cost of goods sold accounts in their chart of accounts for food and beverage. This matters because target food cost runs 28-35% of food sales while beverage cost runs 18-25%, and combining them hides margin problems in both categories.
Read answerHow do you do weekly inventory counts for restaurant COGS?
Count everything on hand Sunday night after close, apply standard costs, then compare your actual usage to theoretical usage based on recipes and POS sales. The gap between those two numbers tells you where food cost is leaking.
Read answerHow are tips handled in payroll for a Wisconsin restaurant?
Wisconsin allows a tip credit, so you can pay tipped employees a base wage of $2.33 per hour as long as tips bring them to the $7.25 minimum. All tips must be reported and taxed through payroll.
Read answerWhat's tip pooling and how is it recorded?
Tip pooling collects a portion of tips from tipped employees and redistributes them among eligible staff like bussers, food runners, and bartenders. It must be tracked through your POS and processed through payroll so each worker's share shows up on their paystub.
Read answerHow should a bar track liquor inventory to detect shrinkage?
Track pour cost by category and compare it to sales weekly. Liquor pour cost consistently above 22-24% signals over-pouring, shrinkage, or theft. Weekly physical counts and pour tests catch drift before it becomes a serious problem.
Read answerWhat Wisconsin sales tax applies to restaurant sales?
Wisconsin restaurants collect 5% state sales tax plus 0.5% county tax in most counties, bringing the total to 5.5% on prepared food and beverages. A few jurisdictions add additional local taxes for stadium or exposition districts.
Read answerHow do restaurants handle credit card tips vs cash tips in bookkeeping?
Credit card tips flow through your merchant deposit and get paid out to employees through payroll or daily cash-outs. Cash tips are reported by employees on a tip log. Both types must appear on W-2s and have payroll taxes calculated.
Read answerWhat's the difference between food cost percentage and beverage cost percentage?
Both measure how much of your sales go toward product, but they're calculated and tracked separately. Food cost percentage equals food COGS divided by food sales. Beverage cost percentage equals beverage COGS divided by beverage sales.
Read answerHow do restaurants track comps and voids correctly?
Comps and voids are two different things and need separate treatment in your books. Comps reduce revenue through a contra-revenue account. Voids are pre-ring corrections that should never show up as revenue in the first place.
Read answerDo restaurants need accrual accounting or is cash okay?
Cash basis is legal for most restaurants, but accrual accounting gives you a much clearer picture of monthly profitability. Many well-run restaurants use accrual internally for decision-making even when they file taxes on a cash basis.
Read answerHow should a small retail shop track inventory in QuickBooks?
Use QuickBooks Online Plus or higher with inventory tracking enabled, connect your POS system to avoid double entry, and run monthly cycle counts to catch shrinkage before it eats into your margins.
Read answerHow do I set up sales tax for a Wisconsin retail boutique in QuickBooks?
Enable automated sales tax in QuickBooks Online, add the Wisconsin Department of Revenue as your tax agency, and assign the correct tax code to every product. QBO handles rate lookups based on location, applying the 5% state rate plus any applicable county tax.
Read answerWhat inventory method should a small retailer use — FIFO or average cost?
Most small retailers should use average cost. It's simpler, it's what QuickBooks Online calculates automatically, and the difference in accuracy compared to FIFO is minimal for typical retail operations. Consistency over time matters more than the method you pick.
Read answerHow do boutiques account for inventory markdowns and sales?
When you sell marked-down inventory, the sale records at the reduced price while cost of goods sold reflects what you originally paid. Your gross margin compresses naturally. For clearance items sold below cost, you may need to write inventory value down.
Read answerHow do retailers handle shrinkage and inventory adjustments?
Compare a physical count to what your books say you should have. The difference is shrinkage, recorded as a loss expense with a matching reduction to your inventory asset. Industry average runs 1-2% of sales.
Read answerWhat's the difference between gross margin and markup for a retail store?
Both measure the gap between cost and selling price, but they use different denominators. Markup is based on cost while margin is based on selling price. Confusing the two leads to underpricing.
Read answerHow should a Wisconsin gift shop handle sales tax on shipping?
Wisconsin requires sales tax on shipping charges whenever the product being shipped is taxable. Since most gift shop merchandise is taxable, most of your shipping charges will be too.
Read answerHow do retailers account for vendor discounts and rebates?
Discounts received at the time of purchase reduce inventory cost using the net price method. Volume rebates earned after the fact reduce cost of goods sold when received. Neither should be recorded as other income.
Read answerHow do small retailers handle returns and refunds in bookkeeping?
Returns reverse the original sale. Revenue and sales tax get reduced, and inventory increases back if the item is resellable. Using a contra-revenue account to track returns separately gives you visibility into return patterns.
Read answerWhat POS system integrates best with QuickBooks for a boutique?
Square, Shopify, and Lightspeed all integrate directly with QuickBooks Online. Square is simplest for in-store sales, Shopify works best for omnichannel, and Lightspeed handles complex inventory. The right choice depends on how and where you sell.
Read answerHow do I register for a Wisconsin sellers permit?
Apply online at the Wisconsin Department of Revenue's Taxpayer Access Point (tap.revenue.wi.gov). The registration fee is $20, and online applications are typically processed in about 2 business days.
Read answerDo I need a Wisconsin sellers permit for a service business?
Most pure service businesses don't, but Wisconsin taxes more services than people expect. Landscaping, janitorial, photography, and several other service categories are taxable, which means those businesses need a sellers permit.
Read answerHow often do I file Wisconsin sales tax returns?
The Wisconsin Department of Revenue assigns your filing frequency based on how much sales tax you collect. You'll file monthly, quarterly, or annually. Even periods with zero sales require a return.
Read answerWhat's the Wisconsin state sales tax rate?
Wisconsin's base state sales tax rate is 5%. Most counties add a 0.5% county tax, bringing the typical combined rate to 5.5%. A few jurisdictions have additional local taxes that push the total slightly higher.
Read answerHow do I form an LLC in Wisconsin?
File Articles of Organization with the Wisconsin Department of Financial Institutions (DFI) online for $130. Your LLC name must be unique and include 'LLC' or a variation. Online filings are typically processed within 1-2 business days.
Read answerWhat's the annual report requirement for a Wisconsin LLC?
Every Wisconsin LLC must file an annual report with the Department of Financial Institutions. The fee is $25 online or $40 by paper, and it's due by the end of the calendar quarter in which your LLC was originally formed.
Read answerIs a single-member Wisconsin LLC a disregarded entity for taxes?
Yes, by default. The IRS treats a single-member LLC as a disregarded entity, meaning the business income and expenses flow directly onto your personal tax return. Wisconsin follows the federal classification.
Read answerWhen should a Wisconsin business owner elect S-Corp status?
S-Corp election typically makes sense when your net income consistently exceeds around $70,000 per year. At that point, the self-employment tax savings usually outweigh the added payroll and compliance costs of $2,000 to $3,000 annually.
Read answerWhat's Wisconsin's Economic Development Surcharge?
The Economic Development Surcharge is a Wisconsin tax on C-corporations and certain partnerships with gross receipts of $4 million or more. Most small businesses fall well below the threshold, but LLCs that elected corporate taxation should verify whether they're subject to it.
Read answerHow does Wisconsin tax pass-through income for LLC owners?
LLC income passes through to your personal Wisconsin tax return and is taxed at graduated rates ranging from 3.54% to 7.65%. Wisconsin also offers a pass-through entity tax election that can help qualifying owners work around the federal SALT deduction cap.
Read answerDo I need a Wisconsin business license for my service business?
Wisconsin does not have a statewide general business license. But depending on your trade, your location, and whether you make taxable sales, you may still need a sellers permit, trade credentials, or local registrations.
Read answerHow much does it cost to start a Wisconsin LLC?
The mandatory state filing fee is $130 for Articles of Organization. Add a $25 annual report and a few optional items, and most Wisconsin business owners launch an LLC for under $200.
Read answerHow do I set up QuickBooks Online for a new small business?
Start by picking the right subscription tier, then configure your fiscal year, chart of accounts, bank feeds, products or services, and sales tax settings. Done properly, initial setup takes two to four hours and saves you from headaches all year.
Read answerShould I use QuickBooks Online Simple Start, Essentials, Plus, or Advanced?
Most small businesses land on Essentials or Plus. The right plan depends on how many users you need, whether you track inventory, and whether you need job or project-level reporting.
Read answer
