HVAC Company Chart of Accounts Template

For an HVAC (Heating, Ventilation, and Air Conditioning) Contracting business, a Chart of Accounts (COA) would be tailored to address the specific financial activities related to the HVAC industry. Here's a possible breakdown:

Chart of Accounts for an HVAC Contracting Business:

1. Assets

• Current Assets:

  • Cash: This includes all cash on hand and in bank accounts.

  • Accounts Receivable: Money owed to the business by customers for HVAC services rendered.

  • Inventory: Stock of HVAC units, replacement parts, and other materials.

  • Prepaid Expenses: Payments made in advance for expenses such as insurance or rent.

• Fixed Assets:

  • Vehicles: Trucks and vans used for service calls.

  • Equipment & Tools: HVAC installation and diagnostic tools, machinery, and other equipment.

  • Office Equipment: Computers, phones, furniture, and other office essentials.

  • Buildings and Improvements: If the business owns property or has made significant improvements to a leased property.

• Other Assets:

  • Deposits: Payments made as security, such as a rental deposit for a warehouse.

2. Liabilities

• Current Liabilities:

  • Accounts Payable: Money owed to suppliers for HVAC units or other goods/services.

  • Credit Card Liabilities: If the business uses credit for purchases.

  • Wages Payable: Salaries due to employees.

• Long-Term Liabilities:

  • Loans Payable: Long-term loans or financial obligations.

3. Equity

• Owner’s Equity:

  • Owner's Capital: Owner’s investment in the business.

  • Retained Earnings: Profit that has been reinvested into the business.

4. Income

• Operating Revenue:

  • Service Revenue: Income from HVAC installation, maintenance, and repair services.

  • Sales Revenue: Income from selling HVAC units or replacement parts directly to customers.

• Other Income:

  • Interest Income: Earned from savings or investments.

5. Expenses

• Operating Expenses:

  • Salaries & Wages: Compensation for both field and office staff.

  • Rent or Lease: Payment for office or storage space.

  • Utilities: Water, electricity, internet, etc.

  • Advertising & Marketing: Promotions, ads, website maintenance.

  • Insurance: Coverage for potential damages, liabilities, and worker's compensation.

  • Vehicle Expenses: Gas, maintenance, and repairs.

  • Office Supplies & Expenses: Paper, ink, software subscriptions, etc.

• Cost of Goods Sold (COGS):

  • Materials: HVAC units, replacement parts, coolants, and other necessary materials.

  • Direct Labor: Salaries of technicians directly involved in HVAC services.

This COA can be further refined or expanded based on the specific services and scale of the HVAC contracting business. However, the above outline provides a foundational structure to start with.