Plumbing Business Chart of Accounts Template

A plumbing business, much like other service-based businesses, will have a specific set of accounts based on its operations. Below is a likely Chart of Accounts (COA) tailored specifically for a plumbing business:

Assets

1. Current Assets:

   • Cash on Hand and Bank Accounts: Petty cash, checking, and savings.

   • Accounts Receivable: Money owed by customers for plumbing services rendered.

   • Inventory: Plumbing parts, fixtures, and supplies.

   • Prepaid Expenses: Examples include advance rent or insurance premiums.

2. Fixed Assets:

   • Plumbing Tools & Equipment: Wrenches, pipe cutters, drain snakes, inspection cameras, etc.

   • Vehicles: Vans or trucks specifically equipped for plumbing tasks.

   • Buildings and Property: If the business owns office space, storage, or a workshop.

   • Accumulated Depreciation: Reduction in value for tools, vehicles, and property over time.

3. Other Assets:

   • Security Deposits: For leased office or storage space.

   • Long-term Investments: If any.

Liabilities

1. Current Liabilities:

   • Accounts Payable: Amounts owed to suppliers or vendors for parts or services.

   • Employee Wages Payable: Due wages to your workers.

   • Sales Tax Payable: Taxes collected from customers and owed to the government.

   • Short-term Loans or Line of Credit: Any borrowings due within a year.

2. Long-Term Liabilities:

   • Notes Payable or Long-term Loans: Obligations not due within the current year.

Equity

1. Owner's Capital: Initial and any subsequent investments by the owner.

2. Owner's Draw: Amounts taken out by the owner for personal use.

3. Retained Earnings: Profits that are reinvested into the business.

Income

1. Service Revenue:

   • Residential Plumbing Services

   • Commercial Plumbing Services

   • Emergency Repairs

   • Installation of fixtures

   • Maintenance Contracts

2. Other Income:

   • Sale of excess inventory or scrapped metal

   • Interest from any business bank deposits

Expenses

1. Operating Expenses:

   • Rent or Mortgage: Cost for leasing or owning office space or a workshop.

   • Utilities: Water, electricity, internet, phone services.

   • Salaries and Wages: Payments to administrative staff and plumbing technicians.

   • Vehicle Expenses: Fuel, maintenance, insurance, and registration.

   • Marketing and Advertising: Costs related to promoting the business.

   • Travel and Meals: For jobs out of town or when technicians have to stay overnight.

   • Training and Development: Courses, certifications, and seminars for staff.

   • Insurance: General liability, worker's compensation, vehicle insurance.

   • Licenses and Permits: Required to legally operate the plumbing business.

   • Depreciation: For tools, equipment, and vehicles.

2. Cost of Goods Sold (COGS):

   • Parts and Supplies: Cost of plumbing parts used in service.

3. Other Expenses:

   • Bank charges, interest payments, penalties, etc.

Crafting an accurate and tailored Chart of Accounts is essential for a plumbing business. It ensures that every financial transaction is categorized correctly, making financial management and analysis straightforward and effective. Please let us know if we can be of help!