Kaizen CFO/blog
Plumbing Bookkeeping

Bookkeeping for Plumbing Companies


Service calls pay today, new-construction draws pay in ninety days, and your books treat both like the same pile of money. They are not the same pile of money. We keep them separate, reconciled, and closed on time — so the P&L stops lying to you by accident.

Plumber fitting pipe with a wrench

Two revenue streams wearing one uniform

Residential service is fast cash and fat margins. New-construction plumbing is slow draws, retainage, and margins that only work if the volume is there. On a lazy P&L they blend into one number that tells you nothing except that money moved.

Clean books split them, so you can see which side of the truck actually pays for the truck. The other quiet drain is parts stock — the fittings, valves, and water heaters riding around in the van that never got matched to a job. Booked right, that inventory shows up as an asset instead of vanishing into a cheerful 'materials' line.

What clean plumbing books actually tell you

Once recording is right, the reporting gets useful. You can finally see true gross margin on service versus construction, how much cash is tied up in inventory you forgot you bought, and whether the on-call overtime that keeps customers happy is quietly eating the month.

Permit and inspection timing matters too. Money collected on a rough-in isn't earned until the job clears final, and treating a deposit as profit is how a good year turns into a surprise in April.

How Kaizen runs it

We run your books on QuickBooks Online, Ramp for the cards, and Gusto for payroll — wired so the data captures itself instead of getting keyed in three weeks late. Then we do the part most bookkeepers skip: a documented month-end close that lands on the same date every month and produces the same reports whoever is out sick.

We're named after kaizen — continuous improvement. In practice each close is a little cleaner than the last, and the miscoded distributor invoice that used to hide until tax season gets caught in the reconciliation. Deliberately boring.

What's included

  • Transaction categorization with a rules engine tuned to distributors, fuel, and permit fees
  • Bank & credit-card reconciliations — every account, every month
  • Job costing split by service, new-construction, and commercial
  • A written month-end close checklist with an owner and due date per step
  • Truck / parts-stock tracking so inventory stops disappearing into 'materials'
  • Deposit and retainage handling so collected cash isn't booked as profit early
  • 1099 tracking for your subs and filing at year-end
  • Monthly data-quality scan — uncategorized, unreconciled, imbalanced items flagged before they compound
New engagements usually start with the 1-2-3 CFO™ Reset — a 90-day on-ramp: Month 1 cleanup and first real close, Month 2 KPIs and cash visibility, Month 3 systems and a forecast you can plan around.

Pricing

$1,000–3,000/motypically ~1% of monthly revenue · month-to-month, no contract
~$6,400/mowhat a $60K in-house bookkeeper actually costs fully loaded, before they take a vacation during your busy stretch
One personwhat that buys: a single point of failure who needs managing and eventually leaves
A team + a systemwhat Kaizen buys: bookkeeping, controller review, and a close that doesn't decay

Straight answers

My books are months behind. Can you catch them up?

Yes — that's the normal starting point, not a confession. Month 1 of the Reset is the backlog: categorization, reconciliations, and a first real close. Most catch-ups land inside 30–45 days.

Can you actually separate service from construction margin?

Yes, and it's usually the first thing owners notice. We cost jobs into separate buckets so you can see which type of work carries the company and which just keeps everyone busy.

Do I have to switch software?

We work in QuickBooks Online. On spreadsheets or desktop, migration is part of setup. Already on QBO, we fix the existing file in place.

Do I even need this, or just a bookkeeper?

If your books are genuinely clean and you only need someone to file 1099s, we're overkill — hire a bookkeeper and keep your money. If you can't tell service margin from construction margin, that's us.

Free 20-minute books assessment

We'll show you the five things we'd fix first in your books — useful whether you hire us, hire someone, or do neither.

Talk to Sales

Or call us directly: +1 786 789 0969