Business Administration Essentials

When an insurer asks for your license, a customer disputes a change, or your accountant needs last year’s receipts, you need the document in two minutes, not two hours. By the end of this lesson you’ll have one folder structure for everything, a naming rule, a list of what to keep and for how long, a 15-minute weekly filing routine, and a backup plan.

This lesson is an introduction, not legal or tax advice. The IRS sets the rules for tax records, and your state, insurer and lender may have their own. Ask your accountant how long to keep each type of record in your situation.

Use the same structure on your computer or cloud drive and, if you keep paper, in a file box. Five top-level folders:

Inside 2 Money, one folder per year (2026, 2027…), and inside each year: Statements · Receipts · Invoices sent · Tax.

Inside 3 Jobs, one folder per job, named the same way every time (next section).

Date, then who, then what: YYYY-MM-DD Customer or vendor - Document

• 2026-11-03 Garcia - Estimate 1042.pdf
• 2026-11-10 Garcia - Signed contract.pdf
• 2026-11-14 Home supply - Receipt drywall.jpg
• 2026-11 Bank - Business checking statement.pdf

Dates first means every folder sorts itself in order. Job folders follow the same idea: 2026-11 Garcia - Kitchen repaint.

The IRS says your supporting documents for expenses “should identify the payee, the amount paid, proof of payment, the date incurred”, and lists among them “Account statements”, “Credit card receipts and statements,” and “Invoices” (IRS: what records to keep). For income, keep documents “that show the amounts and sources of your gross receipts”, such as deposit information, invoices and 1099s.

How long, per the IRS:

Other documents aren’t about taxes and follow other rules. Keep these while they’re in force, and ask your accountant, attorney or insurer how long after:

• Company: formation papers, EIN letter, licenses: as long as the business exists.
• Insurance: every policy you’ve had, including old ones; a claim can come in years after the job.
• Jobs: contracts, change orders, permits, lien waivers and warranties: at least as long as the warranty and any time limit to bring a claim in your state.

If you’d rather not sort records by type, ask your accountant whether keeping everything for seven years works for you.

• Photograph or scan every receipt the day you get it. Thermal receipts fade.
• Name it with the rule and drop it in the year’s Receipts folder, or use an app that does it for you.
• Ask your accountant whether scans alone are enough for you, or whether to keep some originals.
• Keep originals of anything with a signature or a seal you may need to show: titles, formation papers, signed contracts if your attorney advises it.

Same day every week, for example Friday at 4:

1. Empty the truck: receipts from the dash and pockets, photographed and named.
2. Empty your inbox: invoices, statements and documents from customers and suppliers saved to the right folder.
3. Close finished jobs: final invoice, photos and warranty in the job folder.
4. Check expiry dates: license, insurance, registrations. Anything expiring in the next 60 days goes on your calendar.

If it takes longer than 15 minutes, it’s been more than a week.

A phone in a puddle shouldn’t take your records with it.

• Cloud drive for the working copy, so it’s on your phone and your computer.
• A second copy somewhere else: an external drive or a second cloud account, updated monthly.
• Two-step sign-in on the accounts that hold your records.
• Tell one person you trust where the records are and how to reach them, in case something happens to you.

This week:

1. Create the five folders and this year’s Money subfolders.
2. Move what you already have into them, renamed with the naming rule. Start with the Company folder.
3. Put the 15-minute filing routine in your calendar for the same day every week.
4. Set up the second backup copy.

For tax records, the IRS’s general rule is 3 years, with longer periods in specific cases: 6 years if you under-report income by more than 25%, 7 years for bad debt deductions, at least 4 years for employment tax records, and property records until the period of limitations ends for the year you dispose of the property. Contracts, insurance and warranties follow other rules; ask your accountant and attorney.

Ask your accountant whether scanned or photographed receipts are enough in your situation. Either way, capture each receipt the day you get it, because thermal paper fades.

The Company folder. Licenses, insurance and formation papers are what insurers, customers, banks and permit offices ask for most often, and what’s hardest to replace.

Bookkeeping is recording every dollar that comes in and goes out of the business, in categories, so you know whether you’re making money and your accountant can file your taxes. By the end of this lesson you’ll have a category list that fits a trade business, a 30-minute weekly routine, a monthly close checklist, a habit for setting tax money aside, and a list of what to ask and send your accountant.

This lesson is an introduction, not tax advice. It covers what to pay attention to as a new business. Your accountant decides how your books and taxes should be set up, based on your business structure and state.

1. A separate business bank account and card, used only for the business. Separating business and personal finances walks through it.
2. Bookkeeping software, connected to that account, so transactions come in by themselves. Ask your accountant which software they work with; it saves you both time.
3. One way to capture receipts the day you get them (see organizing your business documents).
4. Ask your accountant which accounting method to use. With the cash method, income counts when you’re paid and expenses when you pay; with accrual, when you invoice and when you’re billed. They’ll pick the one that fits.

Your accountant may adjust these, but a simple list keeps job costs apart from overhead, which is what tells you whether your prices work (fixed vs. variable costs).

Keep the list short. Twenty categories you use correctly beat sixty you guess at.

Same day every week:

1. Categorize every new transaction in your bookkeeping software.
2. Match receipts to card and bank transactions. A transaction without a receipt gets a note: what it was and which job.
3. Tag job costs to the job they were for, so you can see each job’s profit.
4. Check open invoices: who owes you, and who’s late. Send reminders.
5. Record payments received in cash or by check, and deposit them.

In the first week of each month, for the month before:

1. Reconcile every account: the balance in your software matches the bank and card statements.
2. Review the profit and loss report: income, job costs, overhead, profit.
3. Check job profit on each finished job: what you priced against what it really cost.
4. Move tax money to a separate savings account (next section).
5. Save the statements in the year’s Money folder.
6. Write down one question for your accountant, instead of guessing.

Nobody withholds tax from your job income, so you have to. Two IRS facts to know as a sole proprietor:

• You report business income or loss on Schedule C, used “to report income or loss from a business you operated or a profession you practiced as a sole proprietor.”
• On top of income tax, “The self-employment tax rate is 15.3%” (IRS), and it applies if “Your net earnings from self-employment … were $400 or more.”

You may also have to pay estimated tax during the year, generally if you “expect to owe tax of $1,000 or more when their return is filed.” The dates are in contractor taxes, deadlines and renewals.

The habit: every time a customer pays you, move a set percentage into a separate tax savings account. Ask your accountant what percentage to use; it depends on your income, state and deductions. Don’t guess low.

Example
Your accountant suggests 25% for your situation. A customer pays an invoice of $1,755.
$1,755 × 0.25 = $438.75 goes to the tax account the same day.
Example rate only: yours may be higher or lower.

If your business is an LLC taxed differently, or an S corporation, the forms and rules change. Your accountant will tell you which apply.

Who does what:

Questions to ask before you hire one:

1. Do you work with other trade contractors or small construction businesses?
2. What do you do, and what do you expect me to do?
3. Which bookkeeping software do you prefer, and can you access mine directly?
4. How do you charge: per return, monthly, or by the hour?
5. Will you tell me what to set aside for taxes and when to pay estimated tax?
6. How quickly do you answer questions during the year?

What to send them:

• Access to your bookkeeping software, or the reports they ask for
• Bank and card statements for every business account
• 1099s you received and the W-9s and payments for anyone you paid
• Vehicle mileage or expense records, and receipts for large purchases
• Estimated tax payments you made, with dates
• Your list of questions

This week:

1. Ask your accountant (or find one with the six questions) which software and accounting method to use.
2. Set up your categories with the table above.
3. Put the weekly routine and the monthly close in your calendar.
4. Open a separate tax savings account and decide your percentage with your accountant.

Yes, with bookkeeping software and a weekly routine, and an accountant for setup, tax advice and returns. If the weekly routine keeps slipping, a bookkeeper may cost less than the mistakes.

It depends on your income, state, business structure and deductions, so ask your accountant for a percentage. Remember that as a sole proprietor you pay self-employment tax (a 15.3% rate, according to the IRS, applied to your net earnings from self-employment) on top of income tax, and nobody withholds either one for you. Your accountant works out the exact amounts.

Job costs change with each job: materials, subcontractors, equipment rental, permits. Overhead you pay whether or not you work: insurance, vehicle, phone, software. Keeping them apart shows you whether each job is profitable and whether your prices cover your overhead.

If you’ve been in contracting long enough, you know this: you don’t get paid for swinging a hammer - you get paid for sending an invoice.

And if your invoice is sloppy, unclear, or missing details, you’re giving the client an excuse to delay payment.

A good contractor invoice template is just as important as a good estimate. It’s the final handshake at the end of a job - and it needs to be clear, professional, and airtight.

A contractor invoice template is a pre-designed document - often in Google Sheets, Excel, Word, or a billing app - that standardizes the way you bill clients for completed work.

It ensures your invoices:

• Look professional
• Include all necessary details
• Reduce payment delays
• Keep your records organized for accounting and taxes

Include:

• Your business name, logo, and contact details
• Client name and address
• Invoice number and date

This builds trust and gives clients exactly what they need for payment processing.

Always list:

• Project name or job site address
• A brief description of the work completed
• Date range of the work (for progress billing)

This connects your invoice to your contract and estimate - no confusion, no excuses.

This is where you protect your cash flow:

• Due date (e.g., “Net 15” or “Due on Receipt”)
• Accepted payment methods (check, bank transfer, credit card)
• A late fee, only if your contract includes it and your state allows it (check with an attorney or your licensing board)

Never assume the client knows your terms - state them in writing.

Include:

• Confirmation that the work is complete per contract
• Warranty details (if applicable)
• Any lien rights notices required in your state

Lien rights, the notices they require and their deadlines vary by state, and some deadlines start before the job ends. Check your state’s rules with an attorney or your licensing board before you count on a lien.

Bottom line:

Your invoice template isn’t just a bill - it’s your last impression on the client, your proof of professionalism, and your ticket to getting paid on time.

A one-person painting job, from a signed estimate of $1,772 with a $177 deposit and one approved change order. Example numbers.

Invoice #1042-F · Date: November 11 · Due: November 26 (15 days)
Job: Interior repaint, living room and hallway, 12 Oak St. Work dates: November 10–11. Estimate #1042, signed October 28.

Paint, primer and patching materials · $543
Labor, 2 days · $1,143
Floor protection and cleanup supplies · $86
Change order #1, signed November 10: patch and paint hall closet · $160
Subtotal: $1,932
Less deposit received October 30 · −$177
Balance due: $1,755

Pay by: bank transfer, card (link), or check to [Business name].
Work completed as described in Estimate #1042 and Change order #1. Workmanship warranty: [your terms, the same as in the estimate].

What makes it easy to pay:

• It matches the estimate line for line, so the customer has nothing to question.
• The change order is its own line, with the date it was signed. See what a change order is.
• The deposit is subtracted and dated. If your state limits deposits, check it before you set one: contractor deposit laws by state.
• One due date and every way to pay, with a card link if you take cards.

• Small jobs: the day you finish, ideally at the final walkthrough, while the customer has just seen the work.
• Multi-week jobs: on the schedule your contract sets, for example at each milestone. Progress billing covers how.
• Never wait for the end of the month. Every day an invoice sits in your truck is a day added to when you’re paid.

Materials you bought for a job and forgot to bill are money you paid out of your own pocket.

1. Photograph each receipt the day you buy, and write the job name on it or in the photo’s name.
2. Attach it to the job in your app or job folder.
3. Before you invoice, compare the job’s receipts to the invoice’s materials line, including returns.

How to keep track of receipts and expenses goes further.

Keep one list of every open invoice and look at it every week:

A reminder schedule you can use. Adjust it to your contract and your state’s rules:

If a customer raises a problem with the work, fix or answer it first, in writing. A clear reply often ends the delay. Simple automations to avoid late invoices can send the reminders for you.

This week:

1. Set up your invoice with the four elements above and your payment methods.
2. Start your open-invoice list and put a weekly review in your calendar.
3. Save the reminder text on your phone.
4. Check your receipts against the materials on your last three invoices.

A good contractor invoice template will:

• Get you paid faster by removing back-and-forth with clients
• Reduce admin time with reusable formatting
• Protect your business with clear terms
• Make tax season easier with organized records

Pro Tip:

Many commercial clients require specific info - like project codes or PO numbers - before they can cut a check. Include a field for this in your template so your invoice doesn’t get kicked back.

We’ve built a ready-to-use Google Sheets invoice template for contractors that includes:

• Automatic totals
• Fields for labor, materials, and subs
• Built-in late fee calculation
• Room for terms, warranty info, and project codes

MotionOps helps you win jobs with customizable invoices, photos and videos, digital signatures, and more features that make your invoices stand out, and keep you from never missing a payment.

A missed date is one of the easiest ways to pay a penalty or lose work you didn’t need to: an estimated tax payment missed, a license that lapsed, a 1099 sent late. By the end of this lesson you’ll have one calendar with the federal tax dates, your own renewal dates, reminders set ahead of each, and a year-end checklist for your accountant.

This lesson is an introduction, not tax or legal advice. The federal dates below are from the IRS and apply to individuals, including sole proprietors. Your state, city, business structure and trade add their own dates. Confirm your full list with your accountant and your licensing board.

The IRS: “If the due date for making an estimated tax payment falls on a Saturday, Sunday, or legal holiday,” the payment is on time “if you make it on the next day that’s not a Saturday, Sunday, or legal holiday.”

Who pays estimated tax: generally, individuals, including sole proprietors, who “expect to owe tax of $1,000 or more when their return is filed” (IRS). Your accountant will tell you whether you need to and how much. Pay from the tax savings account described in bookkeeping for contractors.

How to pay: the IRS says “You may pay within your online account, Direct Pay with bank account, by phone or from your mobile device using the IRS app.” Its payment page lists every option. Save the confirmation of each payment in your Money folder.

Many states also have their own estimated income tax with their own dates; ask your accountant whether yours applies.

If your business is a partnership, an S corporation or a corporation, or you have employees, there are other forms and dates. Ask your accountant for that list.

If you pay a subcontractor or another business for services, you may have to send them a Form 1099-NEC. The IRS says: “Use Form 1099-NEC to report nonemployee compensation” (IRS). For payments made in 2026, the IRS instructions say to report nonemployee compensation “of $2,000 or more” (the threshold was lower for earlier years), and “You are required to furnish the payee statements and file with the IRS by January 31.”

What makes January easy:

1. Get a Form W-9 from every subcontractor before you pay them the first time. It gives you their legal name and taxpayer ID.
2. Pay them from the business account, never in cash without a record.
3. Keep a running total per person during the year.
4. In early January, send the totals and W-9s to your accountant, or file yourself if you’ve been shown how.

Some payments, such as those to most corporations or by card, may not need a 1099 from you. Your accountant will sort out which.

These differ for every business. Find each date once, write it down, and put it on the calendar:

A date on the calendar only helps if you see it in time:

• 60 days before each renewal: ask for quotes or paperwork, and check for continuing education.
• 14 days before each tax date: check the tax savings account and confirm the amount with your accountant.
• The day before: pay or file.

Put all of them in the calendar you already use every day, not a separate app you’ll forget.

In early January, send your accountant:

1. Your bookkeeping reports for the year, or access to your software, with every account reconciled to December 31
2. Bank and card statements for every business account
3. Every 1099 you received (for example from platforms or commercial customers)
4. Totals and W-9s for everyone you paid for services
5. Estimated tax payments you made, with dates and amounts
6. Vehicle mileage or expense records, and receipts for equipment and other large purchases
7. Your questions, and any changes coming next year (hiring, a new vehicle, a new structure)

Deductions are your accountant’s call; contractor tax deductions you shouldn’t miss is a list to bring to the conversation.

This week:

1. Put the five federal dates in your calendar for the next 12 months, with a reminder 14 days before each.
2. Fill in the renewal table with your own dates, and set a reminder 60 days before each.
3. Ask your accountant whether you need to pay estimated tax, how much, and which other dates apply to you.
4. Collect a W-9 from every subcontractor you’ve paid this year.

For individuals, including sole proprietors, the IRS lists April 15, June 15, September 15 and January 15 of the following year. If a date falls on a weekend or legal holiday, the payment is on time on the next business day. Your accountant will tell you whether you need to pay and how much.

If you paid someone for services in your business, you may have to send a Form 1099-NEC by January 31. For payments made in 2026, the IRS threshold is $2,000. Collect a W-9 before the first payment and ask your accountant which payments need a 1099.

It depends on your state. Working without an active license where one is required can bring fines, and in some states it can affect your right to be paid for the work; your licensing board can tell you the rules where you work. Check your renewal date and continuing education with your licensing board, and set a reminder 60 days ahead.

Admin that waits for a free evening becomes a Sunday night with a shoebox of receipts and three customers who never heard back. By the end of this lesson you’ll have a 15-minute daily wrap-up, a two-hour weekly admin block with a checklist, and a short monthly and quarterly list, built from the routines in the other lessons of this course.

At the end of every work day, in the truck or at the kitchen table:

1. Reply to every new inquiry you haven’t answered (how to respond).
2. Photograph today’s receipts and name them with the job.
3. Write today’s job notes: hours, materials used, anything the customer asked for, anything that changed.
4. Send any invoice for work finished today.
5. Look at tomorrow: first address, materials needed, customer confirmed.

Same day and time every week, in your calendar like a job. Example: Friday, 1:00 to 3:00. The minutes are a starting plan; adjust them after a few weeks.

Total: 2 hours. If a section takes much longer every week, that’s the part to fix: a template, a habit, or a tool.

Add 30 to 60 minutes to one weekly block:

1. Monthly close: reconcile every account, review profit and loss, and check profit on each finished job.
2. Lead review: where this month’s inquiries came from and which became jobs.
3. Renewals: anything expiring in the next 60 days (the deadlines calendar).
4. Backup: update the second copy of your records.

1. Estimated tax: confirm the amount with your accountant two weeks before each due date.
2. Prices: compare your real hours and costs on recent jobs with what you priced. Update your price list if they’ve drifted.
3. Overhead: check your monthly overhead against your plan. New costs since last quarter?

• Protect it like a job. Don’t book customers into it. If something has to move, move it to the next day, not “later”.
• Same place, same tools. One laptop or tablet, one list of open items.
• Start with the money sections if you run out of time: invoices and payments before anything else.
• Keep a parking list for anything that comes up during the week, so it gets done in the block instead of interrupting a job.

This week:

1. Put the two-hour weekly block in your calendar as a repeating event.
2. Set a daily 15-minute reminder at the end of your work day.
3. Copy the weekly checklist into your notes or print it.
4. After the first block, write down how long each section really took.

Plan two hours a week plus 15 minutes at the end of each work day as a starting point, then adjust after a few weeks of tracking how long each part really takes. If admin keeps growing, look for the section that takes longest and fix that one.

Money first: invoice every finished job and send reminders on overdue invoices. Then reply to open inquiries and estimates. Books and filing come after, in one or two catch-up blocks.

When your weekly block regularly runs well past two hours, or the work you can’t take on is worth more than the cost of help, a part-time bookkeeper or office helper can pay for itself. Track your admin time for a month before you decide.