Restoration & remediation

Books and taxes for water damage restoration companies.

Emergency calls, insurance holdbacks, deductibles, and drying equipment that runs for days on one job. Gus sorts all of it, an accountant checks every transaction, and you get one number a month.

Book a call What we handle
  • From $197 a month
  • An accountant on every transaction
  • Cancel whenever
JanuaryExample month
$14,500
what you made

January made $14,500. The State Farm holdback from November's basement job finally landed, so I moved it out of receivables and into income.

  • State Farm claim payoutInsurance claims
  • Zelle from homeownerDeductibles
  • Interlink Supply orderEquipment and supplies
  • U-Haul box truck leaseTrucks and fleet
  • Shell fuelTrucks and fleet
Money in$52,000
Money out$37,500
Set aside for taxes$3,200
An example month. Yours will have your numbers.

Why your books are different

Water damage books go wrong when a claim is treated like one payment.

A generalist sees deposits and bills. Your business is emergency calls, insurance pieces that land weeks apart, and drying equipment that earns money one day at a time. When the books do not know that, a job can look finished before it is actually paid.

  1. 1

    A claim pays out in three pieces

    An insurer sends actual cash value first, holds back depreciation until a completion certificate is filed, and the homeowner still owes a deductible, sometimes weeks apart. Logged as one deposit, a job can look finished before two of the three payments have landed.

    What we doTracks the first check, the deductible, and the holdback separately, so you know exactly what is still owed on every open claim.
  2. 2

    Extraction and drying gear looks like supplies

    A truck-mounted extractor or a set of dehumidifiers can run past $10,000, but bought during a busy stretch alongside sandbags and plastic sheeting, it gets lumped into one supply expense and muddies the month.

    What we doFlags a big equipment purchase the day it shows up, logs it separately, and gets the accountant's call on writing it off.
  3. 3

    Emergency call fees hide inside service revenue

    A middle of the night burst pipe call often carries an after-hours premium on top of the job price, and if that premium is not broken out, there is no way to tell whether the emergency line is worth staffing around the clock.

    What we doKeeps after-hours fees in their own line so you can see what emergency response is actually worth.
  4. 4

    A three-party check sits uncashed

    When a mortgage company is listed on the insurance check for a basement loss, the bank will not deposit it until the homeowner and the mortgage company both endorse it, and that step can take weeks while the job is already paid for in labor and equipment.

    What we doKeeps a check like that out of income until it actually clears, so the books never show cash that has not landed.
  5. 5

    Job costing gets buried under one invoice total

    A single water loss can run drying equipment for five days, use a demo sub for wet drywall, and rent a dumpster, and if all of it lands under one expense line, there is no way to see if that job actually made money.

    What we doKeeps equipment days, subs, and materials visible by category so a job's real margin shows, not just the invoice total.

Your categories

The categories Gus keeps for a water damage restoration 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

  • Insurance claim paymentsDirect deposits and checks from carriers like State Farm, Allstate, and Farmers, tied to a claim number.
  • DeductiblesWhat the homeowner owes directly, paid by card, check, or Zelle.
  • Recoverable depreciationThe holdback released after a completion certificate is filed.
  • Cash and self-pay jobsSmaller leaks and non-covered losses paid outright by the homeowner.
  • Property manager contractsRecurring water calls across a rental portfolio.

Money out

  • Drying equipmentAir movers, dehumidifiers, and air scrubbers, logged so they depreciate right.
  • Extraction and demoTruck-mounted extractors, wet drywall removal, and dumpster rental.
  • Trucks and fuelFuel, repairs, and insurance for the response fleet.
  • SubcontractorsPlumbers and electricians brought in on bigger losses.
  • SuppliesPlastic sheeting, containment tape, and sandbags.
  • Insurance and licensingGeneral liability and any state restoration license fees.
  • Marketing and lead feesInsurance referral networks and local ads.

What we watch for you

  • Claim aging

    How long invoiced claims sit unpaid. A rising number means cash stuck with slow carriers.

  • Job margin

    What each loss actually made after equipment, subs, and materials.

  • Equipment utilization

    How many days your dryers are earning money versus sitting in the shop.

  • The set-aside

    What you will owe, tracked every month, so April is a number you already knew.

Ask Gus

Things water damage restoration owners 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.

Why does this month look light when I had three big losses?

Two of those claims are still in the deductible and holdback stage. I moved $8,400 to receivables so the month reflects what actually cleared.

Just bought $11,000 of new dehumidifiers. Does that come off this year?

Usually it can. I logged it as equipment, not supplies, and flagged it so the accountant makes the call with your whole year in view.

Do I owe the demo guy I call on bigger jobs any paperwork?

If you pay him $2,000 or more this year and he is not on payroll, he gets a 1099 by January 31. I keep that list as we go.

The tax side

The tax side of a water damage restoration business.

Most of what goes wrong here is timing and labels. Equipment filed as supplies, a demo sub paid like an employee, and a set-aside nobody started until April.

What your return has to get right

Your accountant signs it, so it gets done right the first time.

  • Drying and extraction equipmentEquipment bought for the business, like extractors and dehumidifiers, can usually be written off the year you buy it. Bonus depreciation is back to 100 percent for property acquired after January 19, 2025.
  • Contractor 1099sAnyone not on payroll paid $2,000 or more in 2026, including a demo sub or a plumber called in on a big loss, gets a 1099-NEC by January 31. Gus keeps the list all year.
  • Employee or contractorA tech who works your schedule, drives your truck, and takes direction on-site is usually an employee, even if paid by the job. Getting that wrong gets expensive.
  • 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 water damage restoration companies miss

Your bookkeeper knows what to look for in your statements. You never have to.

  • Truck fuel and repairs
  • Dehumidifier and extractor repairs
  • Moisture meters
  • Containment plastic and tape
  • Uniforms with your logo
  • Insurance referral network fees
  • Dump and disposal fees
  • Tools that live on the truck
  • Phone and tablet for job photos
  • Licenses and bonding
  • Storage rent for pack-out jobs
  • Continuing education for licensing

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 water damage restoration year, kept every month.

Burst pipes and storm calls come any week of the year. 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.

  1. January

    Plan the year

    Last year's return gets started, the 1099 list for demo and plumbing subs is ready, and a monthly set-aside is planned so April is already handled.

  2. April

    Filed. Done.

    Your return is filed and signed. No surprise bill, because the set-aside has been running since January.

  3. July

    Halfway check

    Where you stand, what you will owe, and whether the winter run of frozen pipe calls changed the number.

  4. October

    Before pipe season

    Before the winter rush of burst pipes, Gus looks at equipment worth buying and anything worth doing before December.

What you get

Starts at$197a month

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 water damage restoration 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 water damage restoration owners ask first.

Can Gus handle jobs paid through insurance claims?

Yes. He tracks the first check, the deductible, and the holdback separately, so your books always show what is actually collected on a claim, not just what was invoiced.

I write my estimates in Xactimate. Do I have to change anything?

No. Keep estimating the way you do. Gus works from your bank statement, and when a deposit is unclear he asks you once and remembers the answer.

My demo guy gets paid by the job, not on payroll. Does that change anything?

It might. If he works your schedule and uses your equipment, he may need to be an employee, not a contractor. Gus flags that pattern so it gets a real look before it becomes a habit.

A mortgage company is listed on one of my checks. What do I do with it?

Get both endorsements before depositing it. Gus keeps that payment out of your income until it actually clears, so your numbers do not show cash you do not have yet.

Do I write off a new extractor all at once?

Often you can. Equipment bought for the business can usually be deducted in the year you buy it, and sometimes spreading it out is the better call. Gus flags the purchase and the accountant decides.

My books are a year behind. Is that a problem?

No. Send the bank statements you have. Gus sorts them, the accountant checks them, and most people know where they stand inside 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.

More in restoration & remediation

We keep books for the business next door too.

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