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Four Key Factors to Consider When Hiring a Bookkeeper for Plumbing Business

Your extensive training and apprenticeship have turned you into an expert in plumbing systems and pipe fixtures. You have put in substantial effort to build your business, grow your client base, and dedicate considerable time traveling to different job sites to offer a service that only a few can match.

 

It's understandable that you might be considering hiring a bookkeeper to help manage your daily finances. Balancing your business operations and bookkeeping can be time-consuming, diverting your attention from more critical aspects of your work.


Bookkeeper for Your Plumbing Business

When seeking to hire a bookkeeper, there are several important factors to consider.

 

1. Relevant Industry Experience and Expertise

 

As a plumbing industry professional, your business has specific accounting requirements. A competent bookkeeper will ensure your books are balanced and up-to-date each month. They will handle tasks like bank and credit card reconciliations, sales tax filings, transaction coding, and financial report preparation.

 

However, it's essential to choose a bookkeeper with experience working with plumbing or construction-based companies and who understands the specific accounting needs of your industry.

 

Your selected bookkeeper should assist in setting up your chart of accounts to help you organize your finances effectively. They should be knowledgeable about creating additional accounts for items such as job materials purchased and equipment rentals.

 

For instance, the payroll for your plumbing technicians should be categorized as a direct cost of goods sold, while the payroll for your administrative staff should be classified under overhead costs. Your bookkeeper must allocate these costs correctly to provide clear visibility on your gross margin.

 

Plumbing businesses depend on job costing to accurately assess the profitability of each project. Therefore, it's essential to have a bookkeeper who can track the revenue and expenses associated with each job.

 

2. Expertise in Payroll Management

 

Payroll regulations are constantly evolving, so it's crucial to hire a dependable bookkeeper who stays informed and up-to-date on all legislation. Properly tracking WSIB, CPP, and EI deductions, Employer Health Tax, vacation pay, and Workers' Compensation is essential for compliance with payroll laws. Your bookkeeper should be fully certified in payroll compliance.

 

Having an effective payroll process is essential for your business, ensuring that vacation time is tracked, benefits are correctly reflected on employee pay stubs, and remittances are calculated and submitted accurately and on time.

 

3. Proficiency in Accounting Technology

 

Your bookkeeping processes must be reliable and maximize efficiency. Thankfully, many accounting technologies available can help streamline your accounting workflow.

 

Your bookkeeper should be proficient in using these tools to establish an efficient bookkeeping process for your business. This will save you considerable time on manual data entry and reduce bookkeeping costs. Additionally, leveraging cloud-based technology eliminates the need for physical document storage.

 

Your bookkeeper should be adept at using various accounting tools to streamline your receivables and payables processes, ultimately enhancing your cash flow. Software such as QuickBooks Online and Dext can help manage your expenses, while platforms like Plooto can assist with vendor payments.

 

Your bookkeeper should also be capable of providing comprehensive training for you and your team on how to effectively use all of this technology.

 

4. Capacity to Grow with Your Business

 

When hiring a bookkeeper, it's essential to find someone who can scale with your business. An in-house bookkeeper or a part-time bookkeeping contractor may have limited capacity, and as your business expands, they might not be able to keep pace with your growth.

 

Outsourcing your bookkeeping to a specialized firm gives you access to a team of bookkeepers who can handle the additional workload as your business grows. They can also offer other accounting services such as payroll, accounts payable management, accounts receivable management, and controllership services, all of which will be beneficial as your business expands.

 

Bringing on a bookkeeper to handle the tedious task of managing your books is a smart move. It will free up your time, allowing you to focus more on expanding your business and making crucial financial decisions. Bluemount Backoffice Solutions can assist with all your bookkeeping and back-office needs.

 

Our team of trained professionals can deliver the latest economic data necessary for running a successful plumbing business. With our expertise in your industry and familiarity with the best accounting technology, we can provide the support you need. Contact us today to discover how we can assist you.

 

Our Process for Selecting and Evaluating Recommended Software

 

We thoroughly research and test the apps we incorporate into our regular workflow for client bookkeeping services. After establishing criteria for evaluating the software and researching the app itself, we test it, noting its strengths and weaknesses. We use the app for at least a few weeks to determine its suitability before recommending it to our readers. We utilize the software as intended for its designed tasks. For a detailed overview of our selection and evaluation process, please refer to the specifics of our method.

 

Bluemount Backoffice Solutions does not receive any consideration or compensation from software publishers for featuring their products in our blog articles.

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