To obtain a contractor's license in Tennessee, you must submit an application, provide a financial statement, pass the business and law exam, and demonstrate experience in your trade. Additionally, you need to obtain general liability and workers' compensation insurance.

To renew your contractor's license, you must submit a renewal application, pay the renewal fee, and provide a current financial statement. The renewal period is every two years, and it’s important to complete the renewal process before your license expires to avoid penalties.

Yes, a reviewed financial statement by a CPA is required for initial licensure and renewal for projects over $25,000. For projects under $25,000, this requirement is waived, but maintaining accurate financial records is still crucial for your business.

Licensed contractors in Tennessee must carry general liability insurance and workers' compensation insurance. General liability insurance protects against third-party claims of bodily injury, property damage, and workers' compensation insurance covers employee-related injuries and illnesses.

To keep your finances organized, use accounting software, maintain separate business and personal accounts, regularly update your financial records, and reconcile your accounts monthly. Our professional bookkeepers can also help ensure accuracy and compliance.

Keep detailed records of income and expenses, invoices, receipts, bank statements, payroll records, tax returns, and any contracts or agreements. These records are essential for managing your finances, preparing taxes, and renewing your contractor’s license.

Improve cash flow by invoicing promptly, negotiating favorable payment terms with clients and suppliers, maintaining a cash reserve, regularly monitoring cash flow, and reducing unnecessary expenses. Accurate bookkeeping helps you track and forecast cash flow effectively.

Contractors must pay federal income tax, self-employment tax, and possibly state and local taxes. Keeping accurate financial records and setting aside funds for taxes is crucial. We can help you understand your tax obligations and plan accordingly.

Improve cash flow by invoicing promptly, offering early payment discounts, managing inventory efficiently, negotiating better payment terms with suppliers, and regularly reviewing your financial statements. Accurate bookkeeping helps you monitor and forecast cash flow.

The key financial statements are the income statement (profit and loss), balance sheet, and cash flow statement. These documents provide insights into your business’s profitability, financial position, and cash movement.

Keep your bookkeeping records up-to-date, categorize expenses correctly, maintain organized documentation, and review your financial statements regularly. Working with one of our QuickBooks-certified bookkeepers can ensure your books are tax-ready, maximizing deductions and ensuring compliance.

Callison CPA can assist with setting up and maintaining your accounting system, preparing and filing tax returns, managing cash flow, ensuring compliance with licensing requirements, reviewing financial statements, and providing strategic financial advice. Our expertise can help you make informed decisions and grow your business.