Job costing, subcontractor 1099s, and equipment that depreciates faster than you can track it by hand — we handle the accounting complexity specific to construction, so you can focus on the build.
General contractors and construction companies run a different kind of business than most: revenue and costs tied to individual jobs rather than steady monthly sales, a workforce that mixes employees with 1099 subcontractors, expensive equipment that needs the right depreciation strategy, and cash flow that can swing hard between a slow winter and a packed summer.
At Mercer Flanagan, we've worked with general contractors and construction companies in Frederick and surrounding counties for over 50 years. We know job costing. We know the deductions specific to this industry. And we're here year-round — not just in April.
"The contractors who come to us mid-year usually have the same gap: they know the business as a whole is profitable, but they can't tell you which jobs actually made money and which ones quietly lost it. Without job costing tied into your books, you're flying blind on your own pricing."
We work with:
These are the situations we hear about most often from new contractor and construction clients.
Without tracking labor, materials, and overhead by individual job, you can't tell which projects are actually profitable. We set up a chart of accounts and QuickBooks structure built for job costing from the start.
Many contractors earning well above the S-Corp threshold are still filing as a sole proprietor, paying full self-employment tax on every dollar. This is one of the first things we evaluate for every new client.
Waiting until January to chase down W-9s from subcontractors you paid all year creates unnecessary stress and risk. We help set up a system so this is handled before payment, not after.
Section 179 and bonus depreciation can both apply to equipment purchases, but the right combination depends on your specific year's income. Timing a large purchase wrong can mean leaving real money on the table.
A strong summer building season followed by a slow winter makes a flat quarterly estimate a guessing game. We adjust your estimates as your actual income plays out across the year.
This is the single most expensive mistake we see in this industry — it costs deductions, creates audit risk, and makes it hard to defend legitimate expenses. We help separate this cleanly and keep it that way.
How your business is structured has a bigger impact on your tax bill than almost any other single decision. Here's how the common options compare for general contractors.
| Structure | Self-Employment Tax | Admin Complexity | Best For |
|---|---|---|---|
| Sole Proprietor / Single-Member LLC | 15.3% on all net income | Lowest | New or very small contracting operations |
| S-Corporation | Only on reasonable salary | Moderate | Established contractors earning $80K+ net |
| Partnership / Multi-Member LLC | Can be high | High | Construction companies with multiple owners |
The right answer depends on your income level, how many employees you have, and whether you have business partners. We analyze this for every new client. Read our S-Corp vs. LLC guide →
We set up your chart of accounts and QuickBooks structure specifically for construction, so labor, materials, and overhead are tracked by job — giving you a real picture of which projects are actually profitable.
QuickBooks Support & Training →We evaluate your current structure, run the numbers on what an S-Corp election would save you, and handle the paperwork to make the switch if it makes sense. For many contractors earning over $80,000 in net income, this is the highest-return tax move available.
S-Corp vs. LLC: Which Is Right for You? →We prepare your business return — Schedule C, Form 1120-S for S-Corps, or Form 1065 for partnerships — along with your personal Form 1040, including all schedule attachments.
Small Business Tax Services →We help set up a system to collect Form W-9s from subcontractors before you pay them and prepare your Form 1099-NEC filings accurately and on time, so January isn't a scramble.
We help time and structure equipment purchases to maximize Section 179 and bonus depreciation benefits based on your actual income for the year, not a generic rule of thumb.
We calculate your quarterly estimated payments based on your actual seasonal income and adjust as the year unfolds. No surprise April bills.
Tax Planning Services →If you need compiled financial statements for a bank loan, bonding requirement, or business expansion, we handle that. Clean, professionally prepared statements that lenders and bonding companies accept.
Financial Statement Compilations →These are the deductions that general contractors and construction companies most often underutilize or miss entirely. Every situation is different, and eligibility depends on your specific circumstances, but these are worth discussing with us.
Deductibility always depends on your specific facts and circumstances. The IRS has specific rules about what qualifies, how to document it, and how to calculate it. We make sure you're capturing what you're entitled to — and that it's documented properly so it holds up if questioned.
Big firms want big corporate clients. We built our practice around the contractors and tradespeople who are the backbone of Frederick County's construction industry. You won't be handed off to a junior associate. You won't wait three weeks for a call back. You get a CPA who knows your name and your situation.
Year Mercer Flanagan was founded in Frederick, MD
Years serving local professionals, businesses & nonprofits
Rated by clients across Frederick County
Access to your CPA — not just during tax season
Year-round access to your CPA. Questions get answered when you have them, not weeks later.
We understand how to set up books that tell you which jobs are actually profitable.
We're based in Frederick, MD. We know this community and we're not going anywhere.
We don't just file your returns. We contact you when something changes that affects your tax situation.
Book a free 20-minute consultation. We'll tell you honestly whether we can help — and what it would cost. No pressure, no obligation.
Book a Free Consultation