Real financial strategy from a Xero Certified bookkeeper who has worked the trades. Built for HVAC contractors and trades business owners.
HVAC bookkeeping is the process of recording, organizing, and reporting the money flowing through a heating and cooling business so the owner can see what...
Read the Full Post →A chart of accounts is the list of categories your bookkeeping uses to sort every dollar in and out of your HVAC business. A good one separates income by...
Read more →A deposit is money you collect before you start a job. Progress billing is collecting payment in stages as the work moves forward instead of one lump sum at...
Read more →A maintenance agreement is a recurring contract where a customer pays for scheduled HVAC tune-ups, usually twice a year, in exchange for priority service...
Read more →HVAC contractors run out of cash in summer because revenue and cash are not the same thing. During peak season you buy equipment and pay techs up front, but...
Read more →Cost per truck is the fully loaded monthly cost of putting one service truck on the road, including the payment, fuel, insurance, maintenance, stocked...
Read more →Overtime is labor paid at a premium rate, usually time and a half, once a worker passes 40 hours in a week. During the summer rush, HVAC overtime can...
Read more →HVAC job costing is the practice of tracking every dollar that goes into a specific job, equipment, materials, labor, and a share of overhead, then...
Read more →Setting up a Louisiana HVAC business on a solid financial footing means forming your entity, getting an EIN from the IRS, opening a dedicated business bank...
Read more →The five bookkeeping mistakes that cost HVAC contractors the most are mixing business and personal money, ignoring job costing, not tracking margins,...
Read more →A common target for an HVAC business is a cash reserve covering three to six months of operating expenses. The right number for you depends on how seasonal...
Read more →Payroll is the largest and most controllable expense in most HVAC businesses, which makes it the biggest lever on your profit. A technician costs far more...
Read more →Average ticket is the average dollar value of a completed HVAC job. It is the fastest lever in the business because raising it grows revenue without a...
Read more →Markup and margin sound the same but they are not, and the confusion costs HVAC contractors real money. Markup is how much you add on top of your cost....
Read more →Revenue is the total money your HVAC business takes in. Profit is what is left after every cost is paid. A company can hit a million dollars in revenue and...
Read more →Many HVAC owners either pay themselves whatever is left at the end of the month, which is often nothing, or they pull money randomly with no plan. A better...
Read more →Spreadsheets are fine when an HVAC business is brand new and tiny. The moment you have employees, multiple trucks, sales tax to track, and real job costing...
Read more →HVAC contractors in the Baton Rouge area face a few local realities that shape their books: combined state and local sales tax rates among the highest in...
Read more →In Louisiana, an HVAC system installed into a home or building becomes part of that real property, so the labor to install or repair it is generally not...
Read more →Recurring revenue is income that repeats on a predictable schedule, like maintenance memberships and service plans, instead of depending on whatever job...
Read more →Estimate vs. actual is the practice of comparing what you predicted a job would cost against what it actually cost once the work was done. The gap between...
Read more →A mid-year financial review is a structured look at your HVAC company's numbers at the halfway point of the year, while there is still time to fix what is...
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