Contractors come to us with the same set of problems. The truck and tool deductions are not getting captured cleanly. The payroll mix of W-2 employees plus 1099 subs is causing 1099 deadline scrambles every January. The S-corp election conversation has been on the table for two years without anyone running the actual numbers. And the year-end tax bill keeps being a surprise. We are a Fort Worth CPA firm that works specifically with contractors across the trades. Here is what a contractor CPA actually does, what it costs, and when it is time to hire one.
What does a contractor CPA actually do?
A CPA who works with contractors handles the full financial stack: monthly bookkeeping with job costing, payroll for W-2 employees and 1099 subs, quarterly estimated tax planning, vehicle and equipment depreciation, entity structure decisions (LLC vs. S-corp), and the year-round planning that controls how much tax you actually owe. The work that separates a contractor CPA from a generalist is the trades-specific knowledge: which deductions matter (Section 179 on the work truck, tools, PPE, licensing, continuing education), how to read job costing reports, when to elect S-corp, and the Texas-specific quirks like franchise tax thresholds and sales tax pass-through on parts.
How much does a contractor CPA cost?
Most contractors in Fort Worth pay $200 to $600 per month for ongoing bookkeeping plus monthly CPA review, or $2,000 to $5,000 per year for tax-only work on a smaller operation. A solo contractor with one truck and no employees is at the low end. A 10-15 person crew with W-2 payroll, multi-state subcontractor 1099s, and S-corp filings sits at the high end. For a full breakdown of CPA pricing in DFW, see how much a CPA costs in Fort Worth.
What tax deductions can contractors claim?
- Tools and equipment. Power tools, hand tools, ladders, drills, meters, test equipment. Anything used 100% for business is deductible, and Section 179 lets you expense large items in year one (2025 cap: $1.22M).
- Work vehicles. Trucks, vans, work trailers. Standard mileage or actual expense. Vehicles over 6,000 lbs GVWR can be expensed under Section 179 in year one.
- Licensing and continuing education. State trade licenses, certification renewals, continuing education hours. All deductible.
- PPE and uniforms. Hard hats, safety glasses, gloves, branded shirts, arc-rated clothing.
- Cell phone and internet. Business-use portion deductible. Track the percentage realistically.
- Home office. If you bid jobs, schedule crews, or run admin from a dedicated home space, a portion of utilities, internet, and home maintenance is deductible.
- Subcontractor 1099 payments. Track every sub paid $600+ per year so January 1099s are mechanical, not a fire drill.
- Insurance. General liability, workers comp, vehicle insurance, professional liability.
When should a contractor hire a CPA vs. just a bookkeeper?
The split depends on what you need. Bookkeepers handle monthly reconciliation, invoicing, AR/AP, and clean financials. CPAs handle tax strategy, entity structure, quarterly estimates, and year-end filing. Below about $250,000 in revenue, many contractors run with QuickBooks plus a CPA for taxes only. Above $250,000, you usually need both: monthly bookkeeping so the books are right, plus CPA review so the planning happens. For the bookkeeping side specifically, see bookkeeping for electricians (the pattern applies across trades).
When does an S-corp election make sense for a contractor?
The threshold is usually around $90,000 to $100,000 in net profit. A sole proprietor at $150,000 net pays roughly $21,000 in self-employment tax. The same income inside an S-corp with a reasonable $80,000 salary cuts the self-employment portion to about $12,000, saving around $9,000 per year. The S-corp adds payroll filings and an annual return, but the math works fast above $90,000. Run the numbers with our S-corporation tax calculator before you elect.
What to look for in a CPA for your contracting business
- Trades industry experience. A CPA who has done plumbers, electricians, HVAC, roofers, or concrete before knows the deduction categories, the audit risk patterns, and how to read job costing.
- Year-round availability. Your CPA should be reachable in October when you can still make changes, not just in April when it is too late.
- Job costing capability. If they cannot tell you what your margin was by job type, the work is incomplete.
- Texas-specific knowledge. Franchise tax thresholds, no state income tax planning, DFW property tax season.
- Trade-specific resources. Whether you run accountants for plumbers, HVAC accountants, or accountants for electricians work, the CPA should have specialized knowledge of your specific trade.
Ready to talk?
If you want a CPA who answers the phone, knows the trades, and is reachable when you actually need them, get in touch. We work with contractors across Fort Worth, DFW, and the rest of Texas, and the first call is just a conversation about whether we are a good fit.