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How should a plumbing company set up QuickBooks for job tracking?

Start with the right version. You need QuickBooks Online Plus or Advanced to use the Projects feature. Essentials and Simple Start won’t cut it. The Projects module is what lets you see profitability by job, and without it you’re flying blind on which work actually makes money.

Once you’re on the right plan, set up a project for each job. A project is a container that captures every dollar in and out for that specific work. Time entries, material purchases, subcontractor payments, and customer invoices all get tagged to the project. At any point you can pull a project profitability report and see labor, materials, and margin for that job.

Build out your service items next. Plumbing work isn’t one thing. Emergency repairs, remodel roughs, water heater installs, drain cleaning, and maintenance contracts all have different pricing and different margins. Create separate service items for each work type you bill. When you invoice, pick the right item. This gets you revenue reporting by work type, which tells you where your real money comes from.

Set up your chart of accounts with trade-specific categories. Cost of goods sold should break out materials, subcontractor labor, direct labor, permits, and equipment rentals. General expenses cover trucks, fuel, insurance, licenses, and shop overhead. Resist the urge to lump everything into generic buckets. The extra granularity is what makes the financials useful.

Use classes or locations to track crews, trucks, or service areas. If you run two trucks and want to know which one generates more revenue, classes handle that. If you do both residential and commercial work and want separate P&Ls for each line, that’s also classes. Turn this on in settings before you start entering transactions, because retrofitting class assignments later is painful.

For time tracking, connect a tool like QuickBooks Time (formerly TSheets) so field techs can clock in and assign their hours to a project right from their phone. That labor cost flows directly into job costing. Same with vendor bills for materials. When you enter a bill from your supply house, tag it to the right project so the material cost hits the job.

The reports you’ll actually use are Project Profitability, Profit and Loss by Class, and Sales by Product/Service. Run them monthly to see which jobs, crews, and work types are pulling their weight.

Setup like this isn’t complicated but it’s detailed, and doing it wrong means the reports don’t mean anything. If you’d rather have someone configure it correctly from the start, QuickBooks setup and training is one of the services we handle for trades clients. We also work with plenty of Pasadena bookkeepers referrals who inherited a poorly configured QuickBooks file and need it rebuilt before the numbers make sense.

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What business expenses should a new real estate agent track from day one?

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What tax deductions can real estate agents claim in California?

Real estate agents can deduct vehicle mileage, marketing, MLS fees, license renewal, continuing education, home office, client gifts, photography, staging, and professional services. California conforms to most federal business deductions, so what works on your federal return generally works on your state return too.

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Do electricians need to charge sales tax on their work in California?

Generally no, electricians don't charge sales tax on materials they install because California treats licensed contractors as the consumers of those materials. But fixtures, over-the-counter sales, and certain equipment are taxable, so the details matter.

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How should a general contractor track subcontractor costs by project?

Every sub payment needs to be coded to a specific job and tracked against the original bid. Monitor variances throughout the project to catch overruns early, and collect W-9s upfront so 1099s aren't a scramble in January.

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How do I find a bookkeeper who understands construction and real estate in LA County?

Look for specific experience with job costing, CAM reconciliations, retainage, progress billing, and trust accounting. Generic bookkeeping skills aren't enough for these industries. Ask direct questions about their past work and the software they've used.

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A Squared Bookkeepers is a Pasadena accounting firm serving small and medium-sized businesses throughout the San Gabriel Valley and greater Los Angeles. We provide full-service bookkeeping, payroll, and advisory services, led by an owner who brings 20+ years of accounting experience from institutional real estate and construction.

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