General contractors get paid in lumps: a deposit at signing, a draw at framing, another at drywall, a final check after punch list. Between those lumps, you're floating payroll, materials, and rentals. A business banking solution that charges you a monthly fee during the slow weeks between draws is the wrong choice.

Contractors need a checking account that accommodates irregular cash flow, plus reliable invoicing tools to collect those draws. Use the criteria below, then copy the standard invoice or progress billing template into your next job file.

What should general contractors look for in a business banking solution?

Construction cash flow doesn't look like retail or SaaS. Money comes in big and uneven, then goes out fast to subs and suppliers. The account has to handle that without nickel-and-diming you.

Fee structure that survives slow months. No monthly maintenance fee, no minimum balance penalty. If you finish a job in March and don't close the next one until late April, your provider shouldn't bill you for the gap.

Incoming ACH and wires that arrive whole. A $40,000 draw should land as $40,000. Incoming wire fees can add up fast on a job with multiple draws, so compare published fee schedules before opening an account.

A way to earmark funds by job or client. If everything sits in one balance, job costing turns into a forensic exercise every January. Reserves let you earmark portions of your checking balance for each job's deposit, materials budget, and tax set-aside.

Mobile check deposit. Paper checks are still common in construction.

You don't want to drive to a branch to deposit a homeowner's check on a Saturday.

A workaround for cash. Novo doesn't accept cash deposits. If you collect cash on a side job, walk it to a USPS counter, grocery store, or check casher, buy a money order, and deposit the money order with mobile check deposit. It's an extra step, not a dealbreaker.

Is Novo a good business banking solution for general contractors?

Novo is a business checking account built for general contractors and other service businesses with irregular cash flow, offering $0 monthly fees, no minimum balance, job-costing Reserves, and built-in invoicing.

Here is what that looks like in practice:

• No monthly fees, no minimum balance. Novo charges no monthly fees and requires no minimum balance, so contractors don't pay fees during slow months between jobs.
• $0 on incoming wires and ACH. Progress payments and draws arrive in full.
• Unlimited outgoing ACH at no additional cost. Pay subs, suppliers, and your own crew without per-transaction charges piling up.
• Novo Reserves for job costing. Earmark portions of your Novo checking balance for taxes, materials, payroll, and each active job using business sub-accounts. When a draw lands, allocate the materials portion to the job's Reserve so you don't accidentally spend it on payroll.

• Built-in invoicing with payment links. Novo's built-in invoicing tool lets contractors send unlimited invoices with payment links and accept bank transfer or card payments; standard payment processing fees may apply. The money lands in the same account you're using to pay subs.
• QuickBooks, Stripe, and Shopify integrations. Transactions sync to QuickBooks Online for bookkeeping; Stripe and Shopify connect for contractors who also sell materials or services online.
• FDIC insurance through a partner bank. Novo is a fintech, not a bank; deposits are FDIC-insured up to $250,000 through Novo's partner bank, Middlesex Federal Savings.

What invoice template should a general contractor use?

Copy the block below into a document and fill in your details. Every field matters. A missing license number or PO can stall payment for weeks.

INVOICE

[Your Company Name]
[Street Address, City, State ZIP]
Contractor License #: [License Number]
Phone: [Phone]   Email: [Email]

Bill To:                              Invoice #: [0001]
[Client Name]                         Invoice Date: [MM/DD/YYYY]
[Client Address]                      Due Date: [MM/DD/YYYY]
Project / PO #: [PO or Contract #]    Payment Terms: Net 30
Job Site Address: [Street, City, State ZIP]

----------------------------------------------------------------
DESCRIPTION                       QTY    RATE        AMOUNT
----------------------------------------------------------------
Labor: [Trade], [Dates]           [hrs]  $[/hr]      $[total]
Labor: Subcontractor [Name]       [hrs]  $[/hr]      $[total]
Materials: [Item, supplier]       [qty]  $[unit]     $[total]
Equipment rental: [Item]          [days] $[/day]     $[total]
Permit / inspection fees                              $[total]
----------------------------------------------------------------
                                       Subtotal:     $[total]
                                       Sales Tax:    $[total]
                                       TOTAL DUE:    $[total]
----------------------------------------------------------------

Accepted payment methods: Bank transfer (ACH), credit/debit card, check
Make checks payable to: [Your Company Name]
Late payment fee: per the rate allowed by your contract and state law

Thank you for your business.

Turn the template into a working file. Paste this template into a document or spreadsheet, then save one blank version and one client-ready version for each job. Add a formula row for Subtotal, Sales Tax, and Total Due so the math updates as you edit.

Progress billing template (multi-phase jobs)

For jobs billed by draw or percentage of completion, use this format instead. It shows the client exactly where the contract stands.

PROGRESS BILLING — APPLICATION FOR PAYMENT

Contractor: [Your Company]   License #: [#]
Client: [Name]               Project: [Project Name]
Job Site: [Address]          Contract #: [#]
Application #: [03]          Period: [MM/DD–MM/DD]
Contract Sum: $[total]       Date: [MM/DD/YYYY]

----------------------------------------------------------------
PHASE / SCOPE       SCHEDULED  % COMPLETE  COMPLETED  PRIOR     THIS
                    VALUE                  TO DATE    BILLED    DRAW
----------------------------------------------------------------
Site prep / demo    $[ ]       100%        $[ ]       $[ ]      $[ ]
Foundation          $[ ]       100%        $[ ]       $[ ]      $[ ]
Framing             $[ ]        80%        $[ ]       $[ ]      $[ ]
Roofing             $[ ]        50%        $[ ]       $[ ]      $[ ]
MEP rough-in        $[ ]        25%        $[ ]       $[ ]      $[ ]
Drywall             $[ ]         0%        $[ ]       $[ ]      $[ ]
Finishes            $[ ]         0%        $[ ]       $[ ]      $[ ]
----------------------------------------------------------------
                    TOTALS:                $[ ]       $[ ]      $[ ]

Less Retainage (10%):                                          $[ ]
Current Payment Due:                                           $[ ]
Balance to Finish (incl. retainage):                           $[ ]

Payment Terms: Net 15 from receipt

Turn this into a draw schedule that calculates itself. Drop the progress billing block into a spreadsheet, then add formulas: Completed to Date = Scheduled Value × % Complete; This Draw = Completed to Date − Prior Billed; Retainage = 10% of Completed to Date; Current Payment Due = This Draw − Retainage. Save one master template and copy it per project.

How should you invoice general contracting clients?

A general contractor invoice should include the contractor's license number, job site address, PO or contract number, itemized labor and materials, and clear payment terms (for example Net 15 or Net 30).

1. Send the invoice from Novo with a payment link. The client pays by bank transfer or card, and the money lands in the same account you're using to pay subs. That can reduce the time spent waiting for mailed checks and manual deposits.
2. Match the format to the job. Use the standard invoice for completed work or short projects. Use progress billing for any job with a draw schedule.
3. Set terms in the contract, not the invoice. Net 15 or Net 30, with a late-fee clause that your contract and state law allow. The invoice should restate, not introduce.
4. Follow up early. Day 1 past due: a polite reminder by email. Day 14: a phone call and a written notice referencing the late-fee clause. Day 30+: review your contract and state rules before pausing work or sending a notice of intent to lien. If the amount is material, talk with a construction attorney.
5. Reconcile against the job's Reserve. When a payment hits, allocate the appropriate share to the job's Reserve. You can compare job payments and tagged costs while the project is still open instead of rebuilding the numbers at year-end.

What tax deductions can general contractors track?

These are the categories that show up on most contractor returns. Tag each transaction to a job in Novo so your bookkeeper isn't rebuilding the year in April.

• Tools, equipment, and rentals. Drills, saws, lifts, scaffolding rentals, generators. Higher-cost equipment may need special tax treatment, so tag the purchase clearly and ask your CPA whether to expense or depreciate it.
• Vehicle mileage and fuel. Use the current IRS standard mileage rate for business driving and keep contemporaneous mileage logs in an app, not a December reconstruction.

• Subcontractor payments. Capture each sub's W-9 at hire. In general, businesses must file Form 1099-NEC for nonemployee compensation of $600 or more, subject to IRS exceptions.

• Licensing, bonding, and liability insurance. Annual license renewals, surety bonds, general liability premiums, workers' comp.
• Materials and supplies. Tag each purchase to the specific job in Novo so cost per project is accurate.
• Permits, inspection fees, and dump fees. These may be deductible business expenses or job costs; tag them to the related project and confirm treatment with your tax professional.
• Phone, software, and office costs. Estimating software, project management tools, the business portion of your cell phone.
• Health insurance and retirement contributions. Self-employed health insurance deduction and SEP-IRA or Solo 401(k) contributions for sole proprietors and single-member LLCs.

Push categorized transactions from Novo to QuickBooks Online so your bookkeeper or CPA works from clean data, not a shoebox.

How should general contractors pay subcontractors and handle 1099s?

The two mistakes that cost contractors money at year-end: paying a sub without a W-9 on file, and losing track of which payments went to which sub.

Before the first payment. Collect a completed W-9 from every subcontractor. Save it in your records. No W-9, no payment. That policy avoids the year-end scramble.

Through the year. Novo lets general contractors pay subcontractors by ACH or check and exports transaction data to QuickBooks Online for 1099-NEC filing at year-end. Pay subs by ACH from Novo with no per-transaction fee. Tag each payment to the job so labor cost per project stays accurate.

At year-end. Export the year's sub-payment data from Novo to QuickBooks Online. In general, businesses must file Form 1099-NEC for nonemployee compensation of $600 or more, subject to IRS exceptions; your CPA or filing software can determine who needs a form by January 31.

Quarterly taxes. Set aside a dedicated Reserve for estimated quarterly self-employment and income taxes. A common rule of thumb is allocating 25–30% of each draw to the tax Reserve so April isn't a surprise.

What are the tradeoffs of using Novo as a contractor?

These tradeoffs matter more in construction than in many other fields.

• No cash deposits. Novo does not accept cash deposits. Contractors paid in cash can convert cash to a money order at a retail location and deposit it via mobile check deposit as a workaround.
• No physical branches. Everything happens in the app or web dashboard. If you want to walk into a lobby, Novo isn't that.
• Fintech, not a bank. Novo partners with Middlesex Federal Savings to hold deposits, which is where the FDIC coverage comes from. The day-to-day experience is the Novo app.
• Outgoing wires carry a fee. Incoming wires are $0. Outgoing domestic wires have a fee; check the current amount on Novo's published fee schedule. Most contractor payments to subs go out by ACH at no additional cost, so this rarely bites.

How can a general contractor open a Novo account?

General contractors can open a Novo account online in roughly 10 minutes with an EIN or SSN, business formation documents, and a government ID, with no credit check and no minimum opening deposit.

What to have ready:

• EIN (or SSN if you're a sole proprietor without an EIN)
• Business formation documents: articles of organization for an LLC, articles of incorporation for a corporation, or a DBA filing for a sole proprietor
• Government-issued ID for the account owner
• Business address and phone

Eligible entity types include sole proprietors, single-member and multi-member LLCs, and corporations. Verify the current eligibility list when you apply.

Once the account is open, do these four things before your first job deposit:

1. Set up Reserves for Taxes, Materials, Payroll, and one for each active Job.
2. Connect QuickBooks Online so transactions sync automatically.
3. Send a test invoice from Novo's invoicing tool to yourself or a friendly client.
4. Save your W-9 collection process (a shared folder, a form, or a workflow in your project management tool) so no sub gets paid before the W-9 is in.

FAQ

What is the best bank for general contractors? The best business banking solution for general contractors has no monthly fee, no minimum balance, low-cost incoming payments, mobile check deposit, Reserves or sub-accounts for job costing, and invoicing tools. Novo fits contractors who want online banking with Reserves and built-in invoicing, but it does not accept cash deposits.

Can a general contractor open a business checking account online? Yes. General contractors can open a Novo account online in roughly 10 minutes with an EIN or SSN, business formation documents, and a government ID, with no credit check and no minimum opening deposit.

Does Novo accept cash deposits from contractors? No. Novo does not accept cash deposits. Contractors paid in cash can convert the cash to a money order at a USPS counter, grocery store, or check casher and deposit the money order through Novo's mobile check deposit.

How do I invoice for a construction job? Send an invoice that lists your contractor license number, the job site address, the PO or contract number, itemized labor and materials, and payment terms such as Net 15 or Net 30. For multi-phase jobs, use a progress billing format that shows scheduled value, percent complete, prior billed, current draw, and retainage.

How do I handle 1099s for subcontractors? Collect a W-9 from every sub before the first payment. Pay subs by ACH or check from Novo and tag each payment to the job. Export the year's sub-payment data from Novo to QuickBooks Online. In general, businesses must file Form 1099-NEC for nonemployee compensation of $600 or more, subject to IRS exceptions; your CPA or filing software can determine who needs a form by January 31.

Is my money safe at Novo? Novo is a fintech, not a bank. Deposits are FDIC-insured up to $250,000 through Novo's partner bank, Middlesex Federal Savings.