How Wealthy Plumbers Can Optimize Their Bookkeeping

When profits climb, sloppy books get expensive. For high-earning plumbing companies, controller-grade bookkeeping protects margins, reduces taxes, and unlocks lender confidence. At Henriquez Accounting & Tax Services, we combine a disciplined monthly close with revenue-cycle controls, job-costing analytics, and proactive tax planning—so owners scale with clarity. Explore our Accounting & Bookkeeping, Outsourced Controller/CFO, and Tax Preparation.

Advanced Bookkeeping Moves for High-Earning Plumbers

• Segment by service line & crew: residential vs. commercial, install vs. service; track labor & materials separately.
• True job costing: materials, subs, labor (burdened), permits, and change orders mapped to each work order.
• Revenue cycle discipline: same-day invoicing, card/ACH links, 7/15/30 A/R cadence, and deposits for larger jobs.
• Capex policy: capitalize high-ticket tools/vehicles; evaluate Section 179 vs. bonus depreciation with a pro.
• Inventory controls: truck stock counts, shrink tracking, and min/max reorder rules to protect margin.
• Entity optimization: model S-Corp compensation and retirement contributions once profits are steady.
• Documentation that survives audits: mileage/app logs, receipts with business purpose, and W-9/COI on file.

Month–Quarter–Year: Controller-Grade Rhythm

Monthly

• Close & lock: bank/CC/loan reconciliations, accruals/deferrals, and exception reports.
• Job-costing review: margin by tech/crew, labor % of revenue, materials variance, change-order recovery.
• Cash control: 13-week cash forecast; AP terms utilization and card/ACH fee monitoring.

Quarterly

• Tax estimates & safe-harbor checks; retirement funding windows (SEP/Solo 401(k)/SIMPLE).
• Pricing review: travel/mileage rates, labor multipliers, minimum service fees.
• Controls testing: approvals, user access, inventory counts, and vendor onboarding.

Annually

• Capex & depreciation strategy (vehicles, jetters, sewer cameras, lifts).
• Return prep coordination (1120S/1065/1040) and 1099 e-file with W-9 tracking.
• Policy refresh: close calendar, spending limits, documentation standards.

KPIs Wealthy Plumbing Firms Should Track

• Gross margin by service line & crew; labor burden %; materials variance %.
• DSO (days sales outstanding), first-pass collection rate, and refund/chargeback rate.
• Average ticket, close rate, and call conversion (with marketing source).
• Cash runway, operating margin, and payroll % of revenue.

Tax & Cash Strategies That Move the Needle

• Timing & smoothing: accelerate/defers where appropriate to manage brackets and credits.
• Vehicle strategy: standard mileage vs. actual; documented business use; accountable plan for owners.
• Retirement design: SEP, SIMPLE, or Solo 401(k) to reduce taxable income while building wealth.
• Reasonable compensation (S-Corp): document comp studies; keep officer payroll current.

Common Gaps We Fix for High Earners

• No service-line visibility → underpriced work and hidden losses.
• Loose inventory/truck stock → shrink and margin erosion.
• Skipping reconciliations → surprise balances and audit risk.
• Poor documentation for vehicles/meals/home office → deductions disallowed.

What You’ll Get Working With Us

• Close-on-time financials with reconciliations and variance notes.
• Job-costing dashboards by crew, service line, and campaign.
• Quarterly vouchers, safe-harbor targeting, and notice support.
• Capex/depreciation planning and 1099 e-file with W-9 tracking.

 Book a 30-Minute Consultation

FAQs

What accounting stack works best for growing plumbing firms?

QuickBooks plus integrated invoicing/payments, mileage/receipt apps, and a lightweight BI dashboard for job costs.

How should I track vehicles and tools?

Maintain mileage/app logs; capitalize big-ticket gear; expense consumables to job materials; reconcile fuel cards monthly.

When does an S-Corp make sense?

Once profits are steady and payroll is in place. We model reasonable compensation vs. distributions to confirm savings exceed admin costs.

Ready to put your books on rails?

We’ll bring controller discipline to your plumbing finance—so you scale with less stress and better margins. Schedule Consultation