Bookkeeping Tips for Home Service Pros: 5 Mistakes to Avoid This Tax Season
Running a home service business—plumbing, HVAC, landscaping, or cleaning—takes skill, time, and grit. But when tax season rolls around, even the best in the field can get tripped up by poor bookkeeping.
Whether you're based in Northwest Arkansas or serving customers across the region, these are the top five bookkeeping mistakes to avoid this tax season if you want to keep your finances in order and your stress levels low.
1. Not Tracking Every Job
Each job you complete has associated costs, time, and income. Failing to track jobs accurately can lead to missed revenue and poor decision-making.
Use job management software or QuickBooks Online to log each service call, track expenses like gas and materials, and ensure every payment is recorded. It’s essential for both tax filing and knowing which jobs are truly profitable.
2. Mixing Personal and Business Finances
One of the most common mistakes? Using the same bank account for both personal and business expenses.
This makes your books messy and can trigger issues with the IRS. Instead, open a dedicated business checking account and run all income and expenses through it. It makes tax prep—and daily bookkeeping—a whole lot easier.
3. Not Using QuickBooks for Invoicing
Still sending paper invoices or using random apps? That’s a recipe for late payments and cash flow problems.
QuickBooks Online helps automate your invoicing, send reminders, and sync payments with your bookkeeping. You’ll get paid faster—and keep cleaner records.
4. Ignoring Monthly Account Reconciliation
Reconciling your accounts means comparing your bank statements with your bookkeeping records. When you don’t do this, errors go unnoticed—like duplicate transactions, missing payments, or incorrect balances.
Set aside a short time each month to review and reconcile. It saves time and headaches later.
5. Doing It All Yourself
You’re a pro at your trade—but bookkeeping might not be your strength. And that’s okay.
Working with a QuickBooks ProAdvisor who understands home service businesses can help you set up efficient systems, reduce your tax burden, and give you peace of mind all year long.
Frequently Asked Questions (FAQ)
Q: How should I track mileage for my plumbing business?
A: Use apps like MileIQ or QuickBooks Online’s built-in mileage tracker to log trips accurately.
Q: What can I deduct as a home service provider?
A: Vehicle expenses, tools, uniforms, materials, subcontractor payments, and part of your phone bill may be deductible.
Q: How often should I reconcile my accounts?
A: Monthly is ideal to keep your records clean and spot issues early.
Q: Can I use personal accounts for business expenses?
A: No. Keeping finances separate protects you legally and simplifies your bookkeeping.
Don’t Let Tax Season Catch You Off Guard
📞 Book a free call with Dr. Bryan Raya, QuickBooks ProAdvisor and small business specialist, and take control of your finances before it’s too late:
👉 Book Your Free Call Now
Let’s start Doing Business Right.
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