# Bookkeeping for Electricians: Progress Billing, Job Costing and QuickBooks

Bookkeeping for electrical contractors means tracking each job's labor, materials, permits and subs against what you billed, including jobs billed in stages. The essentials are a QuickBooks setup that separates service from project work, progress billing with retainage tracked, crew hours tied to jobs, and money set aside for quarterly taxes and slow stretches.

## Key takeaways

- Electrical shops often run two businesses: quick service tickets and multi-week projects. Keep their income and costs apart.
- On project work, bill in stages and track retainage, or you'll finance the GC's job out of your own pocket.
- Labor is usually the biggest cost. Tie crew hours to jobs, not just to payroll.
- Permits, inspection fees and wire price swings belong on the job, not in overhead.
- BRIX invoices by stage, chases payments, syncs QuickBooks and keeps 1099s, sales tax and timesheets organized. It doesn't file taxes or give tax advice.

## What's different about bookkeeping for an electrical contractor?

Bookkeeping for an electrical contractor is different because cash and work don't line up. A service call gets paid on the spot, but a remodel, addition or tenant fit-out can run for weeks with wire, gear and labor going out long before the final payment comes in. If the books only show deposits and bills, a busy month can look profitable while the bank account runs dry.

Labor is the other big difference. Electrical work is labor-heavy, crews mix journeymen and apprentices at different rates, and hours on a long job get spread across weeks of timesheets. If those hours aren't tied to the job, you can't tell whether the $18,000 basement job made money until it's far too late to do anything about it.

## How should electricians set up QuickBooks?

Electricians should set up QuickBooks with service and project income on separate lines, labor and materials as job costs, and every bill and timesheet tagged to a job or customer. That gives you a profit and loss you can read at a glance and job reports that show which projects paid and which ones didn't.

**A starting QuickBooks structure for a small electrical contractor**

| Account | Type | Notes |
| --- | --- | --- |
| Service income | Income | Troubleshooting, repairs, device swaps, service fees |
| Project income | Income | Remodels, additions, panel upgrades, EV and generator installs, commercial work |
| Field labor | Cost of goods sold | Journeyman and apprentice wages, coded to jobs |
| Wire, conduit and devices | Cost of goods sold | Job materials; wire prices move, so keep it visible |
| Gear and equipment for resale | Cost of goods sold | Panels, breakers, generators, transfer switches, EV chargers you supply |
| Permits and inspection fees | Cost of goods sold | Every permit pulled, by job |
| Subcontractors | Cost of goods sold | Trenching, drywall patch, low-voltage subs |
| Retainage receivable | Other current asset | Amounts held back by GCs until project completion, if you work under them |
| Tools and testers | Fixed asset or expense | Benders, meters, cable pullers |
| Licensing and CE | Expense | License fees, renewal costs, continuing education |

_A starting point, not accounting advice. Your CPA may prefer a different structure, especially for retainage and work in progress._

## How does progress billing work for electrical jobs?

Progress billing for electrical jobs means splitting a larger job into stages and invoicing each one as it's done, usually a deposit, then rough-in after inspection, then trim and final. It keeps cash coming in while materials and labor go out, and it gives both sides a clear record of what's been paid.

1. **Set the stages in the quote.** For example: 30% deposit to order gear, 40% at rough-in inspection, 30% at final. Put them in writing before work starts.
2. **Invoice the day each stage is reached.** A rough-in that passed inspection on Tuesday should be billed on Tuesday, not when the job wraps up.
3. **Track retainage separately.** If a GC holds back a percentage of each payment until the project closes, record it as money owed to you, and put the release date on your calendar.
4. **Bill changes as change orders.** The extra circuits and the moved panel get their own signed change order and invoice. See [change orders](https://www.brix.so/learn/change-order).
5. **Chase on a schedule.** Progress invoices are easy for customers and GCs to let slide. Follow up on every one until it's paid.

**Sample text exchange: rough-in progress invoice to a GC**



**BRIX (text):** Hi Marcus, Sample Electric here. Rough-in at 18 Willow Ct passed inspection today. Progress invoice #3302 for $5,400 (40% stage, less 10% retainage) is in your email. Thanks!

**GC:** Got it. We pay subs on the 15th and 30th.

**BRIX (text, 16th):** Hi Marcus, quick check on invoice #3302 for 18 Willow Ct. It didn't come through with yesterday's run. Anything you need from us?

**GC:** Missed it, sorry. Adding to the next batch.

That exchange is a sample to show the flow, not a real customer. The wording, timing and number of reminders are set up with you. If you want to see how long you're waiting for money overall, try the [DSO calculator](https://www.brix.so/tools/dso-calculator).

## How do you job cost a panel upgrade?

Job cost a panel upgrade by adding up the panel and breakers, wire and fittings, labor hours at your burdened rate, the permit and any utility or sub costs, then comparing the total to your price. Do it for every upgrade for a few months and you'll see which ones ran over, usually because of surprises behind the wall.

> **Illustrative example: 100A to 200A service upgrade**
>
> Price: $4,200. Panel, main breaker and branch breakers: $780. Meter base, mast, wire and fittings: $520. Labor: journeyman and apprentice, 10 hours each at $62 and $34 burdened = $960. Permit and inspection: $175.
>
> Total cost: $2,435. Gross profit: $1,765, about 42% gross margin before overhead.
>
> Example numbers only, not industry figures. Plug in your own with the [job costing calculator](https://www.brix.so/tools/job-costing-calculator), and work out your true labor cost with the [labor burden calculator](https://www.brix.so/tools/labor-burden-calculator).

The labor line is where electrical job costs drift. A crew that spends two extra hours tracing an old knob-and-tube run without anyone logging it makes the job look better than it was. Crew timesheets tied to jobs fix that; see [billable hours](https://www.brix.so/learn/billable-hours). For the method in general, read [job costing](https://www.brix.so/learn/job-costing) and [labor burden](https://www.brix.so/learn/labor-burden).

## What taxes should electrical contractors plan for?

- **Quarterly estimated tax.** The IRS says sole proprietors, partners and S corporation shareholders generally need to pay estimated tax if they expect to owe $1,000 or more when they file. See [quarterly estimated taxes for contractors](https://www.brix.so/learn/quarterly-estimated-taxes-for-contractors).
- **Self-employment tax.** Owed in most cases once net self-employment earnings reach $400, at 12.4% for Social Security plus 2.9% for Medicare, per the IRS. See [self-employment tax](https://www.brix.so/learn/self-employment-tax) and [S corp vs. LLC for contractors](https://www.brix.so/learn/s-corp-vs-llc-for-contractors).
- **Payroll taxes.** With journeymen and apprentices on payroll, you're withholding and paying employment taxes. See [payroll taxes](https://www.brix.so/learn/payroll-taxes), and keep employment tax records at least 4 years, per the IRS.
- **Subs and 1099s.** Trenching and low-voltage subs may need a Form 1099-NEC. See [1099s for subcontractors](https://www.brix.so/learn/1099-for-subcontractors) and [W-2 vs. 1099](https://www.brix.so/learn/w2-vs-1099).
- **Sales and use tax.** How materials and gear are taxed depends on your state and on whether the work is a repair or a capital improvement. See [sales tax on labor vs. materials](https://www.brix.so/learn/sales-tax-on-labor-vs-materials).

> This is general information, not tax, legal or accounting advice. Rules vary by state and change. Confirm with a CPA or enrolled agent.

## What BRIX does for an electrician's books

BRIX keeps the paperwork that feeds the books moving: invoices go out by stage or at job close, unpaid ones get followed up, customers, invoices and payments sync to QuickBooks, crew clock-ins become payroll-ready timesheets, and expenses, 1099 subs and sales tax stay organized with reminders before estimated tax dates. BRIX doesn't file taxes or give tax advice.

BRIX sends electrical invoices by stage or at completion and chases them, syncs customers, invoices and payments to QuickBooks, records crew hours by job, and keeps expenses, 1099 subs and sales tax organized. It does not file taxes or give tax advice.

- [Invoicing and payments](https://www.brix.so/features/invoicing-payments): Turns finished jobs into invoices and politely chases unpaid ones until the money is in your account.
- [QuickBooks sync](https://www.brix.so/integrations/quickbooks): Syncs customers, invoices and payments with QuickBooks so the books match the jobs.
- [Crew timesheets](https://www.brix.so/#use-cases): Clock-ins, job hours and payroll-ready timesheets.
- [Bookkeeping and tax help](https://www.brix.so/features/bookkeeping-taxes): Keeps expenses categorized, tracks 1099 subcontractors and sales tax, and reminds you of quarterly estimated tax dates. BRIX does not file taxes or give tax advice.

For calls, permits and license tracking, see the [electrician software hub](https://www.brix.so/for/electrical). For winning more of the panel, EV and generator quotes that feed all this, see [electrical leads and sales](https://www.brix.so/for/electrical/sales).

## Frequently asked questions

### What is the best bookkeeping setup for electrical contractors?

Most small electrical contractors use QuickBooks Online with service and project income split, labor and materials as job costs, and every bill and timesheet tagged to a job. Pair it with software that sends invoices and payments into QuickBooks automatically, which is what BRIX does, so you're not retyping progress invoices.

### How do electricians track retainage?

Record the amount a GC holds back on each progress payment as money owed to you, separate from regular receivables, and note when it's due for release. Then invoice for it at project close. Ask your CPA how they want retainage shown in QuickBooks; practices vary.

### What is a good profit margin for an electrical contractor?

It depends on your mix of service and project work, how you pay yourself and your market. Service work usually carries higher gross margins than competitive bid work. Job cost a few months of jobs, then price for the margin you need using the markup and margin calculator.

### Should electricians use progress billing on residential jobs?

On anything that runs more than a few days or needs expensive gear ordered up front, yes. A deposit plus stage payments at rough-in and final keeps you from financing the customer's project. Spell out the stages in the quote so nobody is surprised.

### Are permit fees a job cost?

Yes. Treat permit and inspection fees as a direct cost of the job they were pulled for, so the job's profit is accurate. Many electricians also list them on the quote. If they sit in overhead, your job reports overstate profit on permitted work.

### Does BRIX handle payroll?

BRIX records crew clock-ins and job hours and produces payroll-ready timesheets, so your payroll provider or bookkeeper gets accurate hours by job. It doesn't run payroll or file payroll taxes itself.

## Related

- [Electrician Software for Panel Upgrades, EV Chargers, Permits and Progress Billing](https://www.brix.so/for/electrical)
- [AI Receptionist for Electricians: Screen the Hazards, Book the Site Visit](https://www.brix.so/for/electrical/ai-receptionist)
- [Electrical Leads: How Electricians Win More Panel, EV and Generator Jobs](https://www.brix.so/for/electrical/sales)
- [Bookkeeping for contractors that keeps your books tax-ready all year](https://www.brix.so/features/bookkeeping-taxes)
- [Contractor invoicing software that sends the invoice and chases the money](https://www.brix.so/features/invoicing-payments)
- [QuickBooks for contractors: the right version, real job costing and a sync that keeps the books matched to the jobs](https://www.brix.so/integrations/quickbooks)
- [What Is Job Costing?](https://www.brix.so/learn/job-costing)
- [What Is a Change Order?](https://www.brix.so/learn/change-order)
- [Labor Burden Calculator](https://www.brix.so/tools/labor-burden-calculator)
- [Voltage Drop Calculator](https://www.brix.so/tools/voltage-drop-calculator)

## Sources

- [IRS, Estimated taxes](https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes) (checked 2026-10-19)
- [IRS, Topic No. 554, Self-Employment Tax](https://www.irs.gov/taxtopics/tc554) (checked 2026-10-19)
- [IRS, How long should I keep records?](https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records) (checked 2026-10-19)

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Written by BRIX Editorial Team. Last updated 2026-10-19. General information, not tax, legal or financial advice.
Canonical: https://www.brix.so/for/electrical/bookkeeping