Guide · 6 min read

    Bookkeeping for plumbers & electricians

    One-truck shops live and die on job-level margin. Here's the simplest job-costing system that doesn't require dragging a laptop to every supply house.

    The trades bookkeeping system

    1. 1

      Business banking + business card

      Free business checking + business credit card. Customer deposits in (Venmo Business, ACH, checks). Supply-house and fuel purchases out — never on personal.

    2. 2

      Job-tag every receipt at the counter

      Write the customer name/job number on the receipt before it leaves the supply house. Or snap a photo into a tagged folder. Without this, materials cost gets lost.

    3. 3

      Track mileage daily

      An app on your phone (no manual log). At 70¢/mi in 2026, a typical service truck doing 25,000 miles/year is $17,500 in deductions. Don't reconstruct in April.

    4. 4

      Quarterly taxes + retirement

      Move 25–30% of net to a tax savings account. Once net income passes ~$80k, a SEP-IRA or Solo 401(k) becomes one of the biggest tax tools in trades.

    Deductible expenses for trades

    Materials & parts
    Tools (under $2,500 = expense)
    Major equipment (depreciate)
    Truck & trailer expenses
    Mileage (70¢/mi for 2026)
    Fuel (actual-expense method)
    Truck maintenance & tires
    License & continuing education
    Bonding & general liability
    Workers' comp
    Uniforms & safety gear
    Subcontractor / helper pay (1099)
    Permits & inspection fees
    Office / yard rent
    Phone & dispatch software
    Marketing (Google LSAs, trucks lettered)

    Real margin per job, not just bank balance

    Tag materials, log mileage, track sub pay — and see exactly which jobs make money.

    Start free

    Related

    FAQ

    Why do trades need different bookkeeping than office businesses?+

    Three things make trade bookkeeping unique: high materials cost per job, lots of mileage, and customers who often pay by check or cash. Without job costing you can't tell which calls actually made money once you've subtracted material, fuel, and helper labor.

    How should I track materials per job?+

    Tag every receipt to a specific job. Either snap a phone photo at the supply house or write the job/customer name on the receipt before it goes in the truck. Without per-job tracking, materials disappear into a giant 'supplies' bucket and you lose the cost basis.

    Should I bill flat-rate or time-and-materials?+

    Flat-rate is more profitable for service calls — customers prefer predictable pricing, and your effective hourly rate goes up because you're paid for value, not minutes. T&M makes sense for large renovations where scope is unclear. Most successful one-truck shops use flat-rate for service, T&M for projects.

    What about the truck — actual or mileage?+

    If you only have a work truck used 100% for work, the actual-expense method (gas, insurance, repairs, depreciation) usually wins because trucks cost a lot to run. If a vehicle does double duty (personal + work), the standard mileage rate (70¢/mile in 2026) is simpler and often comparable.

    Do I need to issue 1099s to helpers?+

    Yes — any helper, subcontractor, or apprentice you pay $600+ in a year as a non-employee gets a 1099-NEC by January 31. Collect a W-9 before the first payment. If you misclassify a real employee as a contractor, the IRS can hit you for back payroll taxes.