Find the right bookkeeper for your trades business

For plumbers, mechanics, landscapers, home inspectors, general contractors, HVAC, electricians, and every skilled trade.

Let's talk about what you actually need in a bookkeeper for your plumbing, electrical, HVAC, or other trades business. After seeing both disasters and success stories, here's what really matters when picking someone to handle your books.

Experience with Trade Businesses

This is non-negotiable. Your bookkeeper needs to understand:

- Job costing for service work and projects

- Progress billing on bigger jobs

- Materials tracking and inventory

- Handling deposits and progress payments

- Contractor-specific tax rules

- Payroll for field workers

If they've never worked with trades before, keep looking. The learning curve will cost you money.

Software Knowledge That Matters

They should know their way around:

- QuickBooks (especially contractor edition)

- Project management software

- Time tracking systems

- Mobile invoicing apps

- Payment processing systems

- Payroll software

But more importantly, they should know which reports you actually need to run your business.

Understanding Your Cash Flow

A good trades bookkeeper knows:

- How to track deposits vs. final payments

- Material costs vs. labor costs

- When to bill progress payments

- How to handle retainage

- Managing supplier payments

- Tracking tools and equipment expenses

Red Flags to Watch For:

- Can't explain job costing clearly

- Doesn't ask about your workflow

- Unfamiliar with progress billing

- Doesn't understand seasonal fluctuations

- Won't set up regular review meetings

- Suggests "basic" small business accounting

Questions to Ask Before Hiring:

1. "How many trades businesses do you work with?"

2. "How do you handle work-in-progress billing?"

3. "What reports should I be looking at weekly?"

4. "How do you track job profitability?"

5. "What's your system for catching errors?"

6. "How often will we review the books?"

Communication Style Matters

Look for someone who:

- Explains things in plain English

- Is responsive to questions

- Sets clear expectations

- Flags potential issues early

- Teaches you about your numbers

- Doesn't make you feel dumb for asking questions

Services They Should Provide:

- Monthly reconciliation

- Job cost tracking

- Payroll processing

- Bill payment

- Financial reports

- Tax prep support

- Cash flow forecasting

The Cost Factor

Good bookkeeping isn't cheap, but bad bookkeeping costs more. Expect to pay:

- $500-1500/month for regular service

- More during tax season

- Extra for cleanup if your books are messy

- Setup fees for new systems

But remember: a good bookkeeper should save you more than they cost.

Technology Requirements

They should be comfortable with:

- Cloud-based systems

- Mobile apps for receipts

- Digital document storage

- Online banking

- Electronic payments

- Remote communication

The Working Relationship

Set clear expectations about:

- Response times

- Regular meeting schedule

- Report delivery dates

- Year-end processes

- Tax deadline planning

- Emergency support

Red Flags in Their Work:

- Late bank reconciliations

- Unexplained adjustments

- Missing receipts

- Vague answers about processes

- Poor communication

- Missed deadlines

The Bottom Line

A good bookkeeper is like a good mechanic - they keep things running smoothly and catch problems before they get expensive. Take time to find the right one, and your business will thank you.

Tips for Success:

- Check references thoroughly

- Set clear expectations

- Meet regularly at first

- Learn to read basic reports

- Stay involved in your numbers

Looking for bookkeeping services? Reach out to Trades CXO for a free 30-minute consultation or email us at hello@tradescxo.com.