Plumbing & water
Books and taxes for backflow testing companies.
Dozens of short test visits a week, a filing fee passed through to the water utility, and a test gauge that needs yearly calibration. Gus sorts all of it, an accountant checks every transaction, and you get one number a month.
- From $197 a month
- An accountant on every transaction
- Cancel whenever
April came in at $8,700. The city's spring testing window opened, so test volume nearly doubled from March. I kept the filing fees you collect for the water utility out of your income since they pass straight through.
- Test visit payments, batch depositBackflow testing
- HOA and apartment contractsContract testing
- City filing fee pass-throughUtility filing fees
- Gauge calibration serviceTesting equipment
- Preventer parts, supply houseRepair parts
Why your books are different
Backflow testing books go wrong in the same few places.
A generalist sees dozens of small deposits and thinks it is all the same. Your business is short high-volume visits, a city filing fee that is not really yours, and a test gauge that has to stay certified. When the books do not know that, the monthly number hides more than it shows.
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1
The city filing fee is not your income
Many water utilities charge a small fee to file a passed test, and testers sometimes collect it from the customer along with their own fee. Booked as one number, your real testing revenue looks bigger than it is and the pass-through fee gets missed at tax time.
What we doKeeps the utility filing fee separate from your testing fee, so your real income and the pass-through amount both stay honest. -
2
High volume, low ticket makes bad months invisible
At $65 to $100 a test, a slow week of missed appointments barely shows up in a single deposit, but it adds up over a season and is easy to miss until the year is already behind.
What we doTracks testing income by the month so a slow stretch shows up while there is still time to book more appointments. -
3
Repair work gets buried inside testing fees
A failed backflow preventer often needs a part replaced before it can pass, and that repair is worth more than the test itself. Mixed into one number, you cannot tell how much of your income is actually repair work.
What we doKeeps repair and part replacement income in its own category, separate from the base testing fee. -
4
Gauge calibration is a real annual cost, not a rounding error
Your test gauge has to be recertified on a schedule to keep results valid, and skipping that cost tracking makes it easy to forget until a gauge is overdue and you cannot legally test with it.
What we doFlags gauge calibration due dates from the spending pattern and keeps that cost in its own line so it never gets missed.
Your categories
The categories Gus keeps for a backflow testing company.
Set up once for how you get paid and what you spend. You never pick a category. He does, and an accountant checks it.
Money in
- Backflow testingStandard test visits billed per device, paid on-site.
- Contract testingHOA, apartment, and commercial property annual testing contracts.
- Preventer repairReplacing a failed device or part after a test.
- New device installationInstalling a backflow preventer for new construction or remodels.
Money out
- Utility filing feesCity or water utility fees passed through from the customer, not kept as income.
- Testing equipmentTest gauges and their required annual calibration.
- Repair partsPreventer parts, seals, and check valves.
- Tester wagesKept apart so you can see labor against the visits it ran.
- Truck and fuelFuel, repairs, insurance, and loan interest for the vehicle.
- Licensing and certificationTester certification renewal and continuing education.
- Lead fees and marketingGoogle local services and property management referrals.
What we watch for you
- Tests per week
Your core volume number. A drop shows up here before it shows up in a bank balance.
- Repair attach rate
How often a test turns into a paid repair, since that is where the real margin often sits.
- Contract renewal rate
How many HOA and property contracts renew each year, since that is your steadiest income.
- The set-aside
What you will owe, tracked every month, so April is a number you already knew.
Ask Gus
Things backflow testers ask Gus.
Text him like you would text anybody. He answers in plain English, and when a question is above his pay grade, an accountant looks and gets back to you.
The city filing fee you collect and pass along is not counted as your income. Your real testing revenue is what is left after that, and it is holding steady.
Based on last year's pattern, it looks close. I flagged it so you can get it booked before you are testing with an expired gauge.
About a quarter this month. I keep repair work in its own line so you can see it against your base testing fees.
The tax side
The tax side of a backflow testing business.
Most of what goes wrong here is what counts as your income at all: a pass-through fee that is not yours, and repair work that has to be tracked apart from a simple test.
What your return has to get right
Your accountant signs it, so it gets done right the first time.
- Pass-through filing feesA city or utility filing fee collected on behalf of the customer and paid to the utility is usually not your income and not your deduction. Gus keeps it separate so it does not distort either side.
- Testing and calibration equipmentTest gauges and related equipment can usually be deducted the year you buy them, and calibration service is an ordinary yearly cost.
- Contractor 1099sAnyone not on payroll who you paid $2,000 or more in 2026 gets a 1099-NEC by January 31. Gus keeps that list all year.
- The pass-through deductionMost owner-operators can take up to 20 percent of business profit off their taxable income. It comes out right when the books are right all year.
Deductions backflow testing and certification companies miss
Your bookkeeper knows what to look for in your statements. You never have to.
- Gauge calibration fees
- Truck fuel and repairs
- Preventer repair parts
- Tester certification renewal
- Continuing education courses
- Uniforms with your logo
- Google local services ads
- Phone and tablet for scheduling
- License and bonding renewal
- Route planning software
- Small tools under the expensing threshold
- Vehicle signage and decals
General information about 2026 federal rules, not advice for your business. Your accountant looks at your actual numbers before anything gets filed.
All year, not just April
A backflow testing year, kept every month.
Most utilities set a testing window, often in spring, and the rest of the year runs quieter. Your taxes come on a schedule. Your team keeps you ahead of both. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.
- January
Plan the year
Last year's return gets started, the 1099 list is ready, and you get a monthly set-aside so April is already handled.
- April
Filed. Done.
Your return is filed and signed. No surprise bill, because the set-aside has been running since January.
- July
Halfway check
Where you stand, what you will owe, and whether the spring testing window brought in what you expected.
- October
Before contract renewals
Many HOA and property contracts renew heading into the new year. Before that, Gus looks at gauge calibration timing and anything worth doing before December.
What you get
What you pay depends on what your business needs, and it does not move after that, busy season or slow. No hourly bills, no surprise invoices, no setup fee.
Book a call- Monthly bookkeeping
Every transaction sorted into categories set up for backflow testing and certification companies. You never categorize a thing.
- An accountant checks every transaction
Real review, every month, before your books close. Not a spot check.
- Your business tax return, filed
Prepared, reviewed, and signed by that same accountant every year.
- The monthly number
What you made, what you spent, what to set aside for taxes.
- Your own bookkeeper
A real person assigned to your business, in the app whenever you need them. No hold music.
- On your books all year
Every month, not just in April. Your team speaks up whenever something is worth your attention.
- Cancel any time
No contract. No cancellation call. Your books are yours.
Straight answers
Questions backflow testers ask first.
Does the city filing fee I collect count as my income?
Usually not. Gus keeps it separate from your testing fee, since it passes through to the water utility rather than staying with the business.
Can Gus track repair income separately from test fees?
Yes. Repair and part replacement work gets its own category so you can see it against your base testing income.
Is gauge calibration a deduction?
Yes, it is an ordinary yearly cost of staying certified to test. Gus keeps it in its own line so it is never missed.
My testing volume swings a lot by season. Does the set-aside still work?
Yes. Gus tracks what you actually made each month, so the set-aside adjusts with your busy and slow stretches instead of assuming a flat year.
I run a lot of small test visits a week. Is that too much for Gus to sort?
No. Send the bank statement and Gus sorts every deposit, batched or individual, into the right category.
I run a lot of small test payments and have not tracked them closely. Is that too much for Gus?
No. Send the statements you have, batched deposits and all. Gus sorts each one, separates out any utility filing fees, and gets your real testing income clear within about a week.
Is a real accountant checking my books?
Yes. You get your own bookkeeper, Gus does the first pass on every transaction, and an accountant checks every one before your month closes. That same accountant prepares, signs, and files your business return. Goatkeeper is not a CPA firm, and we never pretend a person looked when they did not.
What does it cost, and can I cancel?
It starts at $197 a month, depending on what your business needs. No setup fee, no hourly bills, no contract. Cancel any time from the app, and your books go with you.
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What makes a bookkeeper worth paying for Every business we keep books for
Book a call
Pick a time. That's the whole signup.
Fifteen minutes with a real person on our team. They look at where your books are, tell you straight what it takes to get caught up, and get you set up on the spot if it fits.
- $197 a month to start
- An accountant on every transaction
- Cancel whenever