⏱ Time: 15 minutes, one time
Have open: The Blank Starter Spreadsheet, your bank and credit card statements from right before you start, and a list of the jobs you have going
A bookkeeping spreadsheet for contractors only works if it’s set up right on day one. The good news: you do this once, it takes about 15 minutes, and then it’s done.
This walks through the Setup tab of the free Starter Bookkeeping Spreadsheet from The Contractor’s Bookkeeping Toolbox. Only the peach cells need you. Everything else fills itself in.
Before you start: pick your start date
Your books need a starting line. The date you pick decides which statements you grab and how much catching up you’ll do.
- January 1 (best). Grab your December statements for each business checking and credit card account. The ending balance on each is your starting balance. Then enter everything from January 1 to today. It’s some catching up, but your CPA gets a full, clean year.
- The first of this month (fastest). Grab last month’s statements and start from there. Just know the earlier months of the year still need sorting out before tax time, by you or your CPA.
- Late in the year? Starting fresh on January 1 is a great plan for next year. This year still needs to be finished for taxes, so pick one of the options above for now.
Also grab a list of your current jobs, with the customer name and contract amount if you have it. For any job that started before this year, note what the customer has paid you on it so far, what you’ve spent on it, and any deposit you’re still holding.
Without QuickBooks
Setting up the spreadsheet, step by step
- Make your copy. Open the Blank version (Google Sheets makes your own copy; Excel downloads to your computer). Keep the Example handy to peek at.
- Add your business name and year. Top of the Setup tab. The year matters: the Profit & Loss uses it to sort your months.
- Name your accounts. Rename them so you can tell them apart, like “Chase checking” or “Amex card.” Whatever you type here becomes the dropdown on the Transactions tab.
- Enter your starting balances. Use the ending balance from the statement right before your start date. Checking goes in as a positive number. A credit card goes in as a negative number, because it’s money you owe.
- Add your jobs. Job name, customer and contract amount. Name jobs the way you talk about them (“Miller kitchen,” not “Job 2026-014”). Lots of tiny jobs? Lump them into one called “Small repairs.”
- Jobs that started before this year? Fill in the three gray columns: what the customer paid you before this year, what you spent on the job before this year, and any deposit you were still holding on January 1. New jobs leave them blank. Job Profit adds these in, so you see the whole job, not just this year’s half.
- Check the categories. The list is built for contractors, with job costs and overhead already split out. Rename any that don’t fit, or fill in a spare peach line. The Schedule C column is just a suggestion for your CPA.
Next January: the “New year? Roll your jobs over” box on the Setup tab walks you through starting a fresh copy and carrying unfinished jobs forward. No copying old transactions.
In QuickBooks Online
The same setup, in QuickBooks
- Connect your accounts under Transactions, then Bank transactions. QuickBooks pulls in your history from the date you pick.
- Check the opening balance against your statement. QuickBooks sets it from the bank connection, and your CPA may need to clean up the offset later.
- Set up customers and projects for each job (projects need the Plus plan).
- Build your chart of accounts (QuickBooks’ word for categories) under Settings, then Chart of accounts. The Contractor Category List in the Toolbox has every category, numbered and matched to QuickBooks.
Spreadsheet vs. QuickBooks
Spreadsheet: you type your starting balance once, and it’s easy to see exactly where it came from.
QuickBooks: the bank connection sets it for you, which is faster but easier to get slightly wrong. Either way, check it against a real statement.
Common setup mistakes
- Starting balance from the wrong date. It has to be the balance right before your first transaction, or your bank check will never balance.
- Entering a credit card balance as a positive number. You owe it, so it’s negative.
- Renaming a category after you’ve used it. Old transactions keep the old name and drop off your Profit & Loss. Pick your names now, or fix the old lines if you rename one.
- A job for every service call. Keep a job for each real project and group the small stuff.
Quick questions
Can I start in the middle of the year?
Yes. Use last month’s ending balances and start entering from the first of this month. The earlier months show zero on your Profit & Loss, so remember they still need catching up before tax time.
How many accounts can I track?
The spreadsheet has room for four, which covers most small contractors. Need more than that? It may be time to look at QuickBooks (see the first post in this series).
Where do I find my starting balance?
On the bank or card statement that ends the day before you start. It’s usually labeled ending balance or new balance.
Do I have to use the Example version?
No, but it helps. It’s filled in with a made-up remodeler so you can see how a finished setup looks before you do yours.
Holly b. is a construction bookkeeper who’s spent many years in contractors’ books. She writes these so you can do your own, or so you’ll know who to call if you’d rather not.
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