The end of the year is a natural pause point for plumbing businesses. After months of emergency calls, leak repairs, drain clearings, and system installations, your books may not be as tidy as you’d like. That is completely normal. Most plumbers are focused on the work in front of them, not the paperwork behind it.
A clean year-end process helps you see where your money went, which jobs were profitable, and what you can improve next year. At Atlas Accounting Group, we work closely with plumbers and other trades to keep their finances simple and stress-free.
This year-end accounting checklist for plumbers will walk you through what to tidy up as the year wraps up so you can enter the next one with confidence.
1. Reconcile Your Bank Accounts And Credit Cards
Start by making sure your bank accounts, credit cards, and payment apps match what’s recorded in your books. Plumbers tend to make quick purchases on the go (a valve, a drain snake blade, a specialty fitting,) and those small buys can get missed easily.
Spend a little time comparing your statements with your accounting records. If something doesn’t match, fix it now instead of scrambling during tax season. This gives you a clean baseline to work from.
2. Review All Unpaid Invoices And Outstanding Bills
Plumbing work often involves a mix of emergency calls, scheduled visits, warranty work, and multi-day jobs. That makes invoicing easy to fall behind on. Before year-end, review any jobs that were completed but never billed. Look at follow-up work too, small service calls are some of the most commonly forgotten invoices in the plumbing trade.
Do the same with your vendors. Plumbing supply stores, wholesalers, and equipment rentals should all be reviewed. Make sure every bill is entered, especially ones for materials purchased on busy days when you were in and out of the shop quickly.
Getting paid for all finished work and capturing every supplier bill gives you a true picture of how your year actually went.
3. Review Your Parts Inventory, Tools, And Equipment
Plumbers and parts go hand in hand. Throughout the year, you stock up on fittings, cartridges, couplings, traps, pipes, and repair kits. Some get used, some disappear into the truck, and some get left behind at job sites.
Set aside time to review what you have on hand. Update your inventory, adjust your books, and note anything that needs to be reordered. This is also a good moment to check your tools and equipment and record anything that broke, was replaced or needs maintenance soon.
Accurate inventory helps you price jobs correctly and prevents money from slipping away on misplaced or duplicated parts.
4. Finalize Payroll, Bonuses, And Subcontractor Payments
If you have employees, confirm that all regular wages, overtime, and any bonuses are processed before the year ends. Plumbing businesses often give end-of-year bonuses tied to busy seasons or performance, so include those, too.
Subcontractor payments should also be brought up to date. Plumbers frequently bring in subcontractors for trenching, camera inspections, or larger projects. Make sure those payments are recorded so you can issue accurate 1099s later.
Cleaning up payroll now makes January much easier for both you and your crew.
5. Record All Tax-Deductible Expenses For The Year
Plumbing businesses qualify for a wide range of deductions. Throughout the year, you likely paid for items such as tools, safety gear, equipment repairs, truck expenses, continuing education, and licensing. Bigger purchases, like a new jetter, camera system, or work van, may qualify for Section 179 or bonus depreciation.
Walk through your expenses and record anything that’s missing. Many plumbers are surprised at how much deduction value gets lost simply because receipts never make it into the books. Capturing everything helps you keep your taxable income as low as possible.
6. Check Your Insurance Policies And Plumbing Licenses
Plumbers often have specific licensing and bonding requirements, as well as general liability policies that need to cover water damage, gas line work, excavation, and more. Year-end is a great time to confirm that nothing has expired or is incomplete.
Think about whether the work you perform has changed during the year. For example, if you added water heater installations, tankless conversions, sewer camera inspections, or gas line services, make sure your insurance covers those activities. Catching gaps now is far better than discovering them during a claim.
7. Close Out Jobs And Review Job Costs
Take a moment to walk through the major jobs you completed. Were all materials posted correctly? Did you record labor hours accurately? Were return trips captured on the invoice?
Plumbing job costs can swing quickly because material prices rise, emergency labor runs long, or unexpected repairs pop up. Reviewing these jobs at the end of the year helps you notice patterns. Maybe certain types of calls always take more time than expected or specific brands of fixtures create recurring issues. These insights help you quote more confidently and improve profitability next year.
8. Plan Your Budget And Equipment Needs For Next Year
Most plumbing businesses have equipment that needs upgrading on a cycle — jetters, cameras, vans, and press tools wear out eventually. Year-end is a good time to map out what you’ll need next year so you can budget ahead.
Think about your workflow, too. Do you need better scheduling software? A new technician? Additional training? These decisions feel much easier when your financial picture is clear.
How Atlas Supports Plumbing Businesses
If this checklist feels like a lot, that’s exactly what we’re here to help with. Plumbing owners are constantly juggling calls, estimates, emergencies, and parts runs; you don’t need the added stress of guessing whether your books are correct.
Check out our Financial Toolbox, which has simple, easy-to-use templates made specifically for tradesmen and contractors. Whether you need a profit planner, a plug-and-play KPI dashboard, or a month-on-month cash flow forecast, you’ll find ready-made tools that get you moving quickly without wrestling with spreadsheets or formulas.
And if you prefer to hand everything off, set up a call with us and we’ll take care of it for you.
At Atlas Accounting Group, our goal is to make the financial side of your business feel simple so you can stay focused on the work you enjoy.
We can walk you through your year-end checklist for plumbers step by step, help you gather what you need, and make sure nothing is missed.