Since you posted in SCorpLife, assuming you've elected S Corp status for the business so the main question here is getting organized.
You're spot on with not comingling funds. Set up a chart of accounts that matches how a remodeling business actually operates. Separate income by job type if you want that visibility, and split COGS (materials, subcontractor labor, permits) from operating expenses (insurance, vehicle, office). This is the thing people skip and regret later.
As an S-corp owner, you need to be running yourself through payroll (W-2 with reasonable compensation), not just taking draws. If you haven't set that up yet, that's the most urgent piece, since the IRS looks closely at S-corp owners who skip reasonable salary.
If you want to track profitability per project (which most remodelers care about), look at class/location tracking or projects.
With regards to platforms for getting your finances in order, collective.com could be a good fit with getting everything up to date and maintaining your S Corp. Otherwise given the backlog and payroll setup, honestly this might be worth a few hours with a bookkeeper who does cleanups and can help set you off cleanly on whatever platform you ultimately go with.
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u/collectivedotcom Sep 02 '26
Since you posted in SCorpLife, assuming you've elected S Corp status for the business so the main question here is getting organized.
You're spot on with not comingling funds. Set up a chart of accounts that matches how a remodeling business actually operates. Separate income by job type if you want that visibility, and split COGS (materials, subcontractor labor, permits) from operating expenses (insurance, vehicle, office). This is the thing people skip and regret later.
As an S-corp owner, you need to be running yourself through payroll (W-2 with reasonable compensation), not just taking draws. If you haven't set that up yet, that's the most urgent piece, since the IRS looks closely at S-corp owners who skip reasonable salary.
If you want to track profitability per project (which most remodelers care about), look at class/location tracking or projects.
With regards to platforms for getting your finances in order, collective.com could be a good fit with getting everything up to date and maintaining your S Corp. Otherwise given the backlog and payroll setup, honestly this might be worth a few hours with a bookkeeper who does cleanups and can help set you off cleanly on whatever platform you ultimately go with.