Accounting 101 for new business owners in the trades

A No-Nonsense Guide for Trade Business Owners across HVAC, electricians, plumbers, landscapers, mechanics, and every skilled trade.

Let's cut through the accounting mumbo-jumbo and talk about real resources that'll help you keep your business finances healthy. Whether you're a plumber, electrician, HVAC pro, or any other trades business owner, here's where to find help without getting lost in accounting jargon.

Free Online Learning That's Actually Useful

Don't sleep on YouTube, folks. Some great channels break down small business accounting in plain English. Give the below phrases a search in YouTube.

- "Contractors Bookkeeping Services" - Made specifically for trades

- "QuickBooks for Contractors" - Great if you're using QuickBooks

- "Fresh Books" channel - Simple explanations for basic bookkeeping

Plus, websites like Skillshare and Udemy often run $15 specials on contractor accounting courses. Just look for ones with good reviews from other small business owners.

Local Resources That Won't Break the Bank

Your local Small Business Development Center (SBDC) is a goldmine most folks don't know about. They offer:

- Free or cheap workshops on bookkeeping

- One-on-one advice sessions

- Help setting up your books

- Reviews of your current system

Best part? They're used to working with trades and speak your language. Google "SBDC near me" to find your local office.

Trade Organizations

Several organizations focus specifically on contractors and trades:

- National Association of Home Builders (NAHB)

- Associated General Contractors (AGC)

- State-specific contractor associations (search your trade + state name + "organization")

Many offer member resources about accounting, including templates and training. Yeah, there's usually a membership fee, but the resources can save you thousands in mistakes.

Software That Makes Sense for Trades

Don't just grab whatever accounting software your buddy uses. These are worth checking out:

- QuickBooks Online Contractor Edition

- Knowify (built specifically for contractors)

- Jonas Construction Software

- Sage 100 Contractor

Most offer free trials - use them to find what fits your style before you commit.

Find an Accountant Who Gets It

Not all accountants understand contractor accounting. Look for ones who:

- Have experience with percentage of completion

- Understand job costing

- Know contractor tax deductions

- Work with other successful trades businesses

Ask other trades business owners who they use. A good accountant who knows the trades is worth their weight in gold.

Real Talk About Learning This Stuff

Nobody expects you to become an accounting expert. You need to know enough to:

- Spot when something's wrong

- Make smart pricing decisions

- Keep the tax folks happy

- Know if you're actually making money

Start with the basics and build from there. Even understanding simple profit and loss statements puts you ahead of many new business owners.

Quick Tips by Trade:

- HVAC: Track parts inventory carefully - it's where profit leaks happen

- Plumbers: Set up systems to track emergency vs. regular service billing

- Electricians: Keep detailed records of permits and inspection costs

- Landscapers: Track seasonal income and expenses separately

- General Contractors: Master job costing before anything else

Bonus Resource: Trade-Specific Facebook Groups

There are some great Facebook groups where trades business owners share accounting tips and resources. Search for "[your trade] business owners" or "contractors network." Just remember to verify any advice you get.

The Bottom Line

Good accounting isn't about fancy systems - it's about knowing your numbers so you can make smart decisions. Start with these resources, but don't get paralyzed trying to learn everything at once. Pick one thing to master each month.

Wanted dedicated help with accounting? Trades CXO specializes in bookkeeping and marketing for the trades. Reach out for a free 30-minute consultation or email us at hello@tradescxo.com.