Bookkeeping & Accounting

How to set up the books so you can actually tell which jobs make money, which don't, and where the cash is.

Why This Matters

The default QuickBooks setup is designed for generic businesses. An HVAC company that dumps everything into "Service Income" and "Expenses" can't answer the most basic question: are service calls profitable, or are installs carrying the business? Separation by service type is the foundation — everything else (job costing, margin tracking, tax planning) depends on it.

Chart of Accounts — HVAC-Specific

Set up your accounts to separate revenue and costs by the type of work. This is the single most important bookkeeping decision.

Revenue accounts (keep these separate)

Cost of Goods Sold (direct costs)

Source: Austin Bookkeeping Hub, Smart Service

HVAC-specific accounts most setups miss

• Refrigerant inventory — EPA-regulated, needs detailed tracking
• Equipment under installation (WIP) — work in progress on multi-day installs
• Service vehicle fuel and maintenance — per vehicle if possible
• Recurring agreement deferred revenue — liability until service is delivered, not income at receipt

QuickBooks Setup

Platform (2026)

Enable immediately

• Class tracking (Settings → Advanced) — classes separate Service, Installation, Maintenance, Commercial
• Job tracking — each install gets its own job code. Every cost entry tagged to that job. Run "Job Profitability" report to see actual margin per install.

FSM integration

QuickBooks handles accounting. Your field service software (ServiceTitan, Housecall Pro, Jobber) handles dispatch, customer history, and mobile invoicing. They sync customers, items, invoices, payments, and inventory. Technicians close work orders and process payments at the job site — reducing accounts receivable aging by 20–40 days (Smart Service).

Monday morning reports (auto-run these)

1. P&L by Class — service vs install vs maintenance revenue and expenses
2. A/R Aging Summary — who owes you and for how long
3. Job Profitability Summary — actual profit per installation
4. Sales by Item Summary — which equipment and parts drive revenue
5. Open Invoices — everything unpaid, for collection tracking

Florida Sales Tax — HVAC

Florida treats HVAC contractors as the end consumer of materials they install into real property (FL Admin Code Rule 12A-1.051). This means:

Current FL rate: 6% state + 1% Pinellas County = 7% total in Belleair.

Source: floridasalestax.com, FL DOR GT-800067

Tax Deductions Most Contractors Miss

Section 179 expensing (2026)

Deduct up to $2,560,000 in qualifying equipment in the year of purchase. The big win: vehicles over 6,000 lbs GVWR (Ford E-350, Ram ProMaster 3500, most box trucks) get full deduction in year one.

Other commonly missed deductions

Sources: Steph's Books, Whyte CPA, AE Tax Advisors

When to Hire a Bookkeeper vs CPA

Monthly Close Checklist

Common Accounting Mistakes

1. Co-mingling personal and business finances — #1 mistake. Creates audit risk and hides true costs.
2. Not tracking job costs by individual job — can't tell which work is profitable.
3. Spending peak-season revenue as if it's year-round — 4× seasonal swing means summer cash must fund winter overhead.
4. Not setting aside taxes — auto-transfer 25–30% of deposits into a separate tax savings account.
5. Late invoicing — invoice on-site before leaving the job. Every day of delay is a day of float you're giving away.
6. Recognizing all agreement revenue at receipt — should be deferred revenue, recognized as visits are delivered.

Sources: Tofu.com, Steph's Books, Smart Service