Bookkeeping for contractors and service businesses in MetroWest and Greater Boston.

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What accounting do plumbers and electricians need?

The biggest accounting need for plumbers and electricians is job costing. You need to know which jobs made money and which ones didn’t, not just whether the month was profitable overall. A $3,000 service upgrade that costs you $2,800 in materials and labor looks fine until you realize the $800 repair call that took an hour made more profit.

Start with separate business bank accounts and credit cards. Mixing personal and business transactions makes everything harder. Every trip to the supply house, every fuel fill-up, every tool purchase should flow through business accounts that you can reconcile and categorize properly.

Track materials by job when possible. If you’re buying pipe fittings for the Johnson bathroom remodel, that cost should tie to that job. Bulk purchases from supply houses are trickier since one trip might cover three jobs. Use detailed receipts and allocate materials to the right projects before you forget what went where.

Vehicle costs add up faster than most skilled trades owners realize. Fuel, insurance, maintenance, and depreciation on work trucks are legitimate expenses. Track mileage if you’re claiming vehicle deductions. The IRS expects documentation, not estimates, if you’re ever audited.

Labor is your other major cost category. If you have employees, payroll needs to be set up correctly with proper withholding and tax filings. If you use subcontractors, track payments and issue 1099s at year end. Misclassifying workers creates tax problems that are expensive to fix later.

Invoicing and collections matter more than most owners admit. Getting the work done is only half the job. Getting paid on time is the other half. Service calls are often paid on the spot, but larger projects may have payment schedules. Track accounts receivable aging so you know who owes you money and for how long.

Cash flow can swing significantly between busy and slow periods. Service calls provide steady income, but larger projects tie up cash in materials before you get paid. Understanding your cash cycle helps you avoid situations where you’re profitable on paper but short on cash to make payroll or pay suppliers.

Keep receipts for everything. Supply house purchases, tools, license renewals, continuing education, insurance premiums. These are all deductible expenses but only if you can document them. Digital receipt capture is easier than paper filing and survives longer.

Most plumbers and electricians start doing their own books, and that works for a while. But as you grow, the time spent on bookkeeping is time not spent on billable work. Professional small business bookkeeping in MetroWest Massachusetts can set up systems that track what matters for your trade and catch mistakes before they become problems.

Quarterly estimated taxes are required if you owe more than $1,000 at year end. Miss these payments and you’ll face penalties. Good monthly accounting gives you the numbers to estimate accurately instead of guessing.

The goal isn’t complicated accounting. It’s accounting that tells you which customers and which types of work are actually profitable, so you can do more of what works and less of what doesn’t.

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More Questions

How long does it take to catch up on back bookkeeping?

The timeline varies widely based on how far behind you are, transaction volume, and record quality. A few months of backlog with good records might take a week or two. Multiple years of neglected books can take several months.

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How do I handle tip reporting in my restaurant's books?

Tips that pass through your restaurant are employee wages, not revenue. Credit card tips show as a liability until paid out. Cash tips get reported by employees and flow through payroll for tax withholding.

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How often should a small business do bookkeeping?

Monthly is the absolute minimum for accurate books. Weekly transaction review catches errors while they're fresh and prevents the dreaded backlog. Most small businesses benefit from consistent monthly closes with weekly check-ins during busy periods.

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What's the best way to manage accounts receivable?

Invoice promptly with clear payment terms, make it easy for customers to pay, and follow up consistently when payments are late. The key is having a systematic process rather than chasing invoices randomly when cash gets tight.

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How do I manage retainage in my construction accounting?

Retainage requires a dedicated receivable account separate from regular accounts receivable. Track withheld amounts by job, record them on each progress billing, and monitor release dates so nothing gets lost when projects close out.

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What's a 13-week cash flow forecast?

A 13-week cash flow forecast is a week-by-week projection of money coming in and going out over the next three months. It shows your cash position each week so you can spot shortfalls before they happen and plan accordingly.

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Full-service bookkeeping firm serving contractors and small businesses in MetroWest and Greater Boston. From monthly bookkeeping to job costing and payroll, we bring 20 years of hands-on business experience to your back office. Locally owned in Bellingham, Massachusetts.

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