The records you keep as a tile contractor serve two purposes. First, they let you see which jobs actually made money. Second, they keep you compliant with the IRS. Both matter, but most tile contractors focus too much on the second and not enough on the first.

Start with job-level documentation. Every project needs a signed contract or estimate, any change orders, and the invoices you sent. These establish the revenue side of each job. Without them organized by project, you can’t calculate profit per job. You just know your bank account went up or down at the end of the month.

Material receipts are where tile contractors often lose track. Tile, grout, backer board, mortar, thinset, sealers. When you buy supplies, note which job they belong to. This is important because material costs in tile work vary more than most trades. A bathroom with intricate mosaic patterns costs far more in materials than a straightforward floor installation. Buying extra tile to account for cuts and breakage is standard practice, and that actual cost per job often exceeds your original estimate. Tracking it helps you bid more accurately next time.

Labor records matter whether you have employees or work solo. If you have W-2 employees, keep timesheets showing hours worked and which jobs they worked on. Payroll records, tax deposits, and quarterly filings all need to be retained. If you use subcontractors for demo or larger jobs, keep their W-9s and every invoice coded to the specific project. You need this for 1099s at year end and for knowing true labor cost per job.

Vehicle and equipment records support your deductions. Track mileage with an app if you drive to job sites. Keep receipts for your wet saw, tile cutters, trowels, and any equipment repairs. These are legitimate business expenses but only with documentation.

Bank and credit card statements are your backup when receipts go missing. Keep every statement. Use a dedicated business account and business card so you are not sorting personal transactions at tax time. A construction bookkeeper in American Fork or your area can help you set up accounts properly if you have not already.

General overhead expenses round out the picture. Insurance premiums, contractor license fees, bond costs, trade association memberships, vehicle insurance, marketing. These reduce your taxable income and belong in your records.

For tax documents specifically, keep prior year returns for at least seven years. Hold onto quarterly estimated tax payment confirmations, 1099s you receive from general contractors who paid you, and 1099s or W-2s you issued to subs or employees.

The records themselves are only useful if they are organized. A shoebox of receipts tells you nothing about which jobs made money. The goal is having records organized well enough that you can track costs by project and phase. That is where interior trades bookkeeping becomes valuable. Job costing depends entirely on accurate, organized records to work with.

How long to keep everything? Seven years is the standard for income and deduction records. Equipment purchases should be kept longer since depreciation spans multiple years. When in doubt, keep it.