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Posts Tagged ‘owning a plumbing company’

Accounting for Your Plumbing Company

February 25th, 2013

Accounting for your plumbing company is an important aspect of owning a plumbing company. Although not always the most exciting part of owning a plumbing company, proper account for your plumbing company is crucial to the lively hood and success of your business. Accounting for your plumbing company gauges financial performance and account for proper tax reporting requirements. It is important to balance over-head costs associated with owning a plumbing company.

accounting for your plumbing company

Lining Success International, http://www.liningsuccess.com/?page_id=4971, 2/24/2013

1)      Sales

A major part of accounting for your plumbing company is maintaining the revenue generated from your plumbing company. Are you invoicing your customers? If so you will need to manage the invoices. This requires that invoices be mailed in a timely manner and proper follow up with customers who do not pay on time. Many service based businesses have the ability to run credit checks on potential customers, however many homeowners do not have the time for approval when it comes to emergency plumbing services, in that case plumbers must be diligent when it comes to collecting non-paid invoices.

 

2)      The Cost of Doing Business

A lot of time when accounting for your plumbing company should be spent on parts and labor, as they are the main source of expenses for a plumbing company. When ordering parts for a job it is crucial to quote and accurate price for the customer. In addition maintain records of when and where the parts were purchased. This important to account for expenses when it comes time for taxes and allows you to track prices for parts that may fluctuate and allow you to get the best deal. Another part of accounting for your plumbing company when it comes to the cost of doing business is labor. Labor will single handedly be your highest expense. It is important to keep track of employee’s time. This will allow you to not only managed their time better, but allow you to view which employees are the most efficient and productive when on the job.

 

3)      Profit and Loss

As with owning any business it is important to know where you stand. Accounting for your plumbing company should entail you keeping a balance sheet.  It is important to maintain accurate records of what your assets are; including vehicles, tools, office equipment, and parts you have on hand for ease of depreciation calculation. Detailed descriptions of the money you have coming in versus the amount you have going out is also part of maintaining a balance sheet when accounting for your plumbing company. Having this information readily at hand will ease the burden of everyday operating procedures, tax preparation, and will allow you to make adjustments as needed for growth and budgeting.

 

accounting for your plumbing company

Accounting for Your Plumbing Company helps plan for your budget

 

When you own your own plumbing company you have many choices on how you want to run your plumbing company. Proper accounting for you plumbing company will aid you in expansion for the future! For more information on accounting for your plumbing company and other plumbing related topics please visit www.growplumbing.com.