Tax advice for skilled trades businesses
Keep wages, materials and fixed assets under control: we handle payroll and financial accounting, prepare annual financial statements and tax returns, and keep track of job sites, vehicles and machinery.
A skilled trades client works differently
At a skilled trades business, the work isn't tied up in a few large invoices but in many small movements: hours spent across several building sites, materials ordered today and installed tomorrow, vehicles and machinery depreciated over years. We organise these movements so that payroll, bookkeeping and annual financial statements fit together — so that at the end of each month you can see which job actually paid off.
What we handle for your business
Four areas work together for you – from the wages of your journeymen to the finished annual financial statements. You decide whether we take on everything or just individual parts.
Payroll accounting
Monthly payroll for journeymen, apprentices and temporary staff – including bonuses, per diems, benefits in kind and the required reports to social insurance and the tax office. We also handle construction payroll matters such as SOKA-Bau reports and the winter construction levy.
Financial accounting
Ongoing bookkeeping with an eye on material purchases and cost of materials used: supplier invoices, advance payments, partial invoices and open items. You receive a report that shows how much of your revenue remains after materials and wages.
Annual financial statements
Balance sheet or income statement (Einnahmenüberschussrechnung), depending on legal form and size. We maintain the fixed asset register, book depreciation on vans, machinery and tools, and value work in progress as of the reporting date.
Tax returns
VAT, trade tax, corporate or income tax, as well as the owner's personal tax return. We submit the returns electronically and review every tax assessment before you pay.
Topics that come up regularly in the trades
Most questions from skilled trades clients revolve around the same points – on the construction site, tax withholding and reverse charge; within the business, vehicles, hours and investments.
Around construction services
- Construction withholding tax: we check whether an exemption certificate is in place, keep track of its validity, and correctly offset any amounts withheld.
- Reverse charge for construction services: we determine for each job who owes the VAT, and word the invoice notes so that the booking holds up later.
- Partial and final invoices: advance payments, progress billings and retentions are recorded in the correct period, so revenue and tax land in the right month.
- Construction payroll: SOKA-Bau reports, per diems and travel costs are included in the same payroll run as base wages and bonuses.
Working together
How a year with us unfolds
In the trades, bookkeeping is closely tied to how building projects progress: materials are advanced, progress invoices come in, wages fall due at month-end.
To keep this from becoming a drawn-out affair, we work in a fixed rhythm of monthly and annual tasks. You'll always know which documents should reach us by when, and we'll let you know if something is missing.
In our initial meeting, we look at your trade, company size, number of employees and your existing accounting. We then set up the chart of accounts, cost centres for larger construction projects and the wage types, take over prior-year figures and the asset register, and clarify the power of attorney for dealing with the tax authorities. If you're switching accountants, we coordinate the data handover directly with your previous firm.
You submit your receipts digitally or in a folder, along with timesheets, holiday and sick-leave notifications. We book incoming and outgoing invoices, prepare the VAT advance return and process payroll, including contribution statements, wage tax registration and certificates for your staff.
We cleanly separate work in progress, advance payments received and supplementary agreements, so the result doesn't fluctuate due to the timing of invoicing. We add new machinery, vehicles and tools to the asset register and assess whether immediate deduction as a low-value asset, depreciation over the useful life, or leasing is the right treatment.
After year-end, we reconcile cash, bank, accounts receivable and accounts payable, value work in progress and discuss the draft with you before anything leaves our office. We then file the financial statements and tax returns and check the tax office's assessments for discrepancies.
Typical cases
Common questions from the workshop
Four topics come up particularly often with trade businesses. We briefly describe what they involve and how we approach them – the specific assessment always depends on your business and its records.
Ready for a tax firm that understands your trade?
We'll get back to you promptly to discuss how we can support your business.