🧰 5 Biggest Bookkeeping Mistakes Home Service Pros Make in Year 5 of Business

By year five, your home service business has likely grown—more clients, more jobs, more equipment. But if your bookkeeping hasn’t kept up, you could be missing out on serious profits (and peace of mind).

Many home service professionals—plumbers, cleaners, HVAC techs, lawn care providers—still make these 5 costly bookkeeping mistakes even in year five.

Here’s how to stay ahead and protect your business as it scales.

✅ Best Practices for Home Service Businesses

• Reconcile Monthly
  Connect and reconcile your bank accounts and business credit cards every month. It helps you catch mistakes, missed payments, or duplicate charges.

• Separate Personal & Business Finances
  Still using one account for everything? Open a dedicated business checking account now to protect deductions and simplify taxes.

• Track Income by Job or Service
  Use QuickBooks Online to tag income per service type (e.g., installs vs. repairs) or by customer. It helps you see what’s most profitable.

• Log All Receipts
  Supplies, gas, tools, uniforms—these are deductible but only if you record them. Use an app to snap and store receipts on the go.

• Follow Up on Invoices
  Don’t lose money because you forgot to follow up on a late invoice. Use automation to track and remind clients.

🚫 Common Mistakes in Year 5

1. Letting A/R Go Unchecked
   Outstanding invoices can strangle cash flow. You’ve earned that money—collect it.

2. Skipping Monthly Reporting
   Your Profit & Loss and Balance Sheet reports tell you where you stand. Don’t fly blind.

3. Not Planning for Taxes
   A strong year means higher tax liability. Don’t get caught off guard.

4. Mixing Up Job Costs
   Not separating material costs from labor or subcontractors leads to pricing mistakes.

5. Ignoring Cleanups
   A messy set of books from years past can bite you hard. Year five is the perfect time to clean up and upgrade your systems.

📌 FAQ

Q: Should I use QuickBooks Online for my home service business?
A: Yes, especially if you want to track jobs, automate invoices, and streamline expenses.

Q: What if I haven’t done a cleanup in years?
A: That’s okay. DBR Bookkeeping specializes in cleanup services—even for years of backlog.

Q: Can a bookkeeper help with job costing?
A: Absolutely. A good bookkeeper helps you understand where your money goes—and which services make the most.

Q: How much does professional bookkeeping cost?
A: Monthly services range from $300–$2000 depending on complexity. A free call can give you an exact quote.

🔧 Book a free call with Dr. Bryan Raya, QuickBooks ProAdvisor
Get your books cleaned up and your profits dialed in:
👉 https://calendly.com/dbr_bookkeeping/book-a-free-call-with-dbr

Let’s start Doing Business Right.

#HomeServiceBusiness #PlumbingBusinessTips #BookkeepingHelp #SmallBusinessSuccess #DBRBookkeeping #DoingBusinessRight