As a plumber, we understand you are busy unblocking pipes, fixing burst pipes and replacing hot water tanks. At the end of the day the last thing you want to think about is your company’s bookkeeping and accounting work!

If you are in the process of trying to find a service that offers accounting for plumbers, here are 7 questions to ask during the interview process.

Question 1: Do they serve other clients in the plumbing industry? 

We recommend this as an opening question because it is important to hire someone who has prerequisite knowledge of the plumbing industry. A ‘general’ accountant might not be able to save you the time or money required to grow if they don’t understand the key areas of your plumbing business.

Question 2: How will they help you manage your business?

Accounting services with a focus on accounting for plumbers should be working to help minimize taxes while maximizing asset protection and maintaining the legal compliances as well as routine bookkeeping.

Question 3: How often will they meet with you to discuss your business goals?

As a business owner, you should be satisfied with the time and effort your accountant is allocating for your business. There are a lot of accountants to choose from. However, not all of them offer equal amounts of individual attention to all their clients.

Question 4: How can they save you money on your day to day costs?

Services experienced and focused on accounting for plumbers should be able to you’re your plumbing business cut costs in payroll, tools & equipment, vehicle, marketing and technology costs, plus more.

Question 5: What financial records do I need to maintain?

The accountant should be able to explain the purpose and importance of the following type of financial records:

• Financial statements –  Income statements, cash flow statement, balance sheet, statement of retained earnings
• General Ledger
• Business tax returns
• Business agreements 
• Contracts
• Business licenses and permits
• Insurance documents
• Payroll records

Question 6: What are the key services they can offer you in your field of business?

There are certain services which are unique to the plumbing industry. Get an overview of them from your accountant. They should include:

• Choosing between cash and accrual method of accounting
• Percentage of completion method
• Monitoring job costs and allocating indirect costs
• Classifying as large or small contractor
• Business & Risk Insurances
• Accounting software for payroll, invoicing, etc.
• Wealth creation strategies including retirement and transfer of Capital Gains
• Industry risk profiling
• Managing the Key Performance Indicators (KPI)
• Advice on sale, purchase, mergers & acquisitions etc.

Question 7: What software do they use to compute data and perform financial analysis?

In today’s age, newer accounting software can perform a detailed compilation of all the accounting data and provide additional information to do a detailed analysis of the business. Make sure that they have the best in tech to support you and your plumbing business.

ClienTax specializes in accounting for plumbers

Our team understands the plumbing industry which can mean the difference between just surviving and potentially thriving. Over the years, our team has assisted dozens of plumbers through various stages of their business life cycle – from start up right through to sale. We would love to offer you our experience, technical tax knowledge and most importantly, an accurate and personalized service that comes from our intimate understanding of your industry.