Construction & Trades

Bookkeeping for Contractors and Construction Companies in El Paso and Southern New Mexico

Earickson Bookkeeping and Taxes provides bookkeeping, sales tax, payroll, and tax preparation for general contractors, remodelers, and trades businesses in El Paso, Las Cruces, and across Texas and New Mexico. That includes HVAC, plumbing, electrical, roofing, concrete, and landscaping. I set up your books so you can see which jobs are making money, stay right with Texas sales tax and New Mexico gross receipts tax, and get to tax season without a box of receipts.

Why construction books are different

A contractor's money doesn't move like a store's. Payments come in by draw, retainage gets held back for months, and costs spread across a dozen jobs at once. A single profit-and-loss statement for the whole company can look fine while two of your jobs are quietly losing money. Construction bookkeeping exists to show you that before the job is over.

What I set up for contractors

Job costing that matches how you bid. Every expense is tagged to a job and a cost category: labor, materials, subcontractors, equipment, and permits. You can then compare actual costs to your estimate while the job is still running, not after.

Retainage tracked on its own. The percentage a customer holds back until completion is money owed to you. I track it as a separate receivable so it doesn't get lost, and I track the retainage you hold on your subs as a separate payable.

A work-in-progress (WIP) schedule. If you work with a bonding company or a lender, they'll want to see whether each open job is overbilled or underbilled. A monthly WIP schedule answers that, and it also tells you whether today's cash is really yours or belongs to future work.

Subcontractor paperwork before the first check. Get a W-9 and a certificate of insurance from every sub before you pay them. For payments made in 2026, a 1099-NEC is required for any sub you pay $2,000 or more during the year, up from $600. Uninsured subs can also show up as an extra charge when your workers' comp carrier audits your policy.

Payroll that fits field work. That means overtime, crews moving between job sites, and certified payroll. Construction contracts over $2,000 on federally funded projects fall under Davis-Bacon prevailing wage rules, which applies to plenty of work in this region, including military installations.

Trucks and equipment. I keep a fixed-asset list with depreciation, and vehicle records that will hold up if questioned.

Texas sales tax for contractors, in brief

• Labor on new construction and residential repair or remodeling is not taxable in Texas.

• How materials are taxed depends on your contract. Under a lump-sum contract (one price for the whole job), you pay sales tax on materials when you buy them and don't charge your customer tax. Under a separated contract (labor and materials itemized), you collect tax from your customer on the materials, which requires a Texas sales tax permit.

• Nonresidential (commercial) repair and remodeling is a taxable service. The whole charge is taxable, whichever contract type you use.

• Mixed jobs are an audit risk. If a lump-sum contract combines new construction with taxable repair work and your paperwork doesn't separate the two, the Comptroller may treat the whole amount as taxable. Clean invoices and contracts are your best defense.

New Mexico gross receipts tax for contractors

New Mexico doesn't have a sales tax. It has a gross receipts tax (GRT), which applies to construction services. The rate depends on where the job is located. Some transactions between contractors can be deducted with a nontaxable transaction certificate (NTTC), but only if the certificate is on file. If you're an El Paso contractor taking jobs in Sunland Park, Santa Teresa, or Las Cruces, you'll need a New Mexico business tax registration and regular GRT returns.

How I work with contractors

• Monthly bookkeeping in the online accounting software I use, with job costing set up for how your business actually runs

• Monthly Texas sales tax and New Mexico GRT returns

• Payroll, quarterly 941s, W-2s, and 1099s

• Catch-up and cleanup when the books have fallen behind

• Fractional CFO support (cash flow forecasting, lender- and bonding-ready financials) once you're ready to grow

Frequently asked questions

Do I need job costing if I'm a small contractor?

Yes, and arguably more than a big one. On a small crew, one underbid job can wipe out a month of profit. Job costing shows you which kinds of work actually pay, so you can bid the next job with real numbers instead of a guess.

Do I charge sales tax on a residential remodel in Texas?

Not on the labor. Materials depend on your contract. On a lump-sum contract, you pay the tax when you buy the materials and don't charge the customer. On a separated contract, you collect tax on the materials portion. Commercial remodeling is different: the whole charge is taxable.

Do I have to send my subcontractors 1099s?

For payments made in 2026, you generally need to file a 1099-NEC for any non-corporate subcontractor you paid $2,000 or more during the year. Collect a W-9 before the first payment so you aren't chasing it in January.

My books are months behind. Can you still help?

Yes. Catch-up bookkeeping is common for contractors, who are usually busiest exactly when the paperwork piles up. I'll get the books current, then keep them that way monthly.

Do you work with contractors in New Mexico?

Yes. I work with clients on both sides of the state line, including New Mexico GRT registration and monthly or quarterly GRT returns.

Ready to get your job costs straight? Schedule a New Client Call.

Official sources: Texas Comptroller Publication 94-116, Sales Tax Guide for Construction · IRS, Forms 1099-NEC and 1099-MISC · New Mexico Taxation and Revenue Department

General information, current as of October 2026. Not tax or legal advice for your specific situation.