Bookkeeping Tips for Plumbing Contractors

Plumbing businesses have unique cash flow challenges. You have high material costs (copper, PVC, fixtures) and often wait weeks for builders to pay invoices.

1. Track Copper Scrap Income

It's tempting to take scrap copper to the recycler for "cash money." However, if this cash hits your bank account without an invoice, it looks like undeclared income. Always record scrap income as "Other Income" in Xero.

2. Invoice for Call-Out Fees

Don't be shy about your call-out fee. It covers your travel and vehicle wear. Ensure this is a separate line item on your invoice so customers understand what they are paying for.

3. Merchant Fees (Square/Stripe)

If you take card payments on the job, you are losing 1.5% - 2% in fees. Don't just absorb this. Account for it as "Merchant Fees" expense to lower your taxable income.