Plumbing & water

Books and taxes for water heater companies.

Same-day tank swaps, financed installs, manufacturer warranty labor reimbursements, and haul-away fees. 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
$10,600
what you made

January came in at $10,600. A/O Smith's warranty check for the labor on that leaking tank finally landed, three weeks after the job, so I logged it against the original repair instead of as new income.

  • ServiceTitan payoutInstalls and repairs
  • A.O. Smith warranty reimbursementManufacturer warranty labor
  • Synchrony payoutFinanced installs
  • Home Depot Pro invoiceTanks and parts
  • County dump feeHaul-away and disposal
Money in$41,800
Money out$31,200
Set aside for taxes$2,600
An example month. Yours will have your numbers.

Why your books are different

Water heater books go wrong in the same few places.

A generalist sees deposits and bills. Your business is same-day installs, manufacturer warranty claims that pay out weeks late, and a haul-away fee on every job. When the books do not know that, you cannot tell which jobs actually paid.

  1. 1

    Manufacturer warranty checks arrive late and light

    You replace a tank still under a Rheem or Bradford White warranty, bill the labor, and file a claim. The manufacturer reimburses weeks later, often less than you billed the customer for the visit.

    What we doMatches the reimbursement to the original job when it finally lands, so the gap between what you billed and what the manufacturer paid is visible, not lost.
  2. 2

    Financed installs land short

    A customer finances a $2,200 tank swap and the lender's payout is a few hundred dollars less than the invoice because of its fee. Booked as the sale, both your revenue and your true financing cost look wrong.

    What we doBooks the full invoice as money in and the lender's cut as its own fee, so your prices and your financing cost both show up honest.
  3. 3

    The haul-away fee gets lost in the job total

    Every install includes hauling off the old tank, which costs you a real dump fee. Rolled into one lump job price, you cannot tell if your haul-away charge actually covers what disposal costs you.

    What we doKeeps disposal and haul-away fees in their own line so you can check that charge against what it actually costs.
  4. 4

    Tank inventory bought ahead skews the month

    Buying a pallet of tanks from Ferguson before a price increase makes that month look expensive and the months you install from stock look artificially cheap.

    What we doKeeps tank and parts purchases in a steady line and flags a stock-up buy so a heavy month is not mistaken for a bad one.

Your categories

The categories Gus keeps for a water heater 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

  • Installs and repairsTank swaps and repair calls, paid on-site or by invoice.
  • Manufacturer warranty laborReimbursements from Rheem, A.O. Smith, or Bradford White for warranty work.
  • Financed installsThe full job amount, with the lender's cut booked as a fee.
  • Emergency and after-hours callsTank failures billed at a higher after-hours rate.

Money out

  • Tanks and partsWater heaters, expansion tanks, and fittings from the supply house.
  • Installer wagesKept apart so you can see labor against the jobs it ran.
  • Haul-away and disposalDump fees for old tanks and scrap hauling.
  • Truck and fuelFuel, repairs, insurance, and loan interest for the fleet.
  • Lead fees and marketingGoogle local services and Angi leads.
  • Permits and inspectionsFees paid to the local building department per install.
  • Financing and card feesWhat the lender, Square, or Stripe kept before you got paid.

What we watch for you

  • Warranty reimbursement lag

    Time between billing a warranty job and getting paid for it, so cash flow surprises stop being surprises.

  • Financing cost

    What lenders keep on financed installs. Worth knowing before you offer it on every ticket.

  • Haul-away margin

    What you charge for disposal against what the dump actually costs you.

  • The set-aside

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

Ask Gus

Things water heater company 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.

A.O. Smith finally paid that warranty claim from three weeks ago. Why does it show up as income instead of covering the job?

It shouldn't. I matched it back to the original repair so you can see what the manufacturer actually covered versus what you ate on that call.

Is my haul-away fee even covering the dump cost?

Close, but not quite this month. Disposal fees ran a little ahead of what you charged. Worth a look at raising that line item.

I bought 15 tanks ahead of a price increase. Does that mess up this month's numbers?

I flagged it so it does not look like a bad month. It is stock you will install over the next few, so I am keeping it in one steady line.

The tax side

The tax side of a water heater business.

Most of what goes wrong here is timing: warranty checks that land weeks late, financing fees folded into sales, and a haul-away charge nobody tracks against its real cost.

What your return has to get right

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

  • Trucks and install toolsA service truck and the tools you carry can usually be written off the year you buy them. Bonus depreciation is back to 100 percent for property acquired after January 19, 2025.
  • 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.
  • Manufacturer warranty incomeReimbursements for warranty labor are still business income, even though they arrive separately from the customer payment. Gus tracks them against the original job so nothing gets double-counted or missed.
  • 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 heater installation and repair companies miss

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

  • Truck fuel and repairs
  • Pipe and fitting supplies
  • Haul-away and dump fees
  • Expansion tanks and straps
  • Uniforms with your logo
  • Google local services ads
  • Permit and inspection fees
  • Phone and tablet for dispatch
  • License and bonding renewal
  • Financing and card fees
  • Small tools under the expensing threshold
  • Continuing education courses

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 heater year, kept every month.

Tanks fail whenever they fail, but they fail more in the cold. 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 is ready, and you get a monthly set-aside 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 tank failure rush changed the number.

  4. October

    Before the freeze

    Tank failures pick up once it turns cold. Before the rush, Gus looks at inventory to stock 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 heater installation and repair 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 heater company owners ask first.

Can Gus track manufacturer warranty reimbursements separately?

Yes. He matches the reimbursement to the original job when it lands, so you can see what the manufacturer covered against what you billed the customer.

Does Gus handle installs financed through Synchrony?

Yes. The full invoice counts as income and Synchrony's cut is logged as a separate fee, so your books show what you actually charged, not just what landed in the account.

I use ServiceTitan for scheduling. Does that change how Gus works?

Not at all. Gus never needs access to ServiceTitan itself. He works straight from your bank statement, matching payouts and warranty reimbursements to the right job as they land.

Do I need to track haul-away fees separately?

Gus does that for you. It gets its own line so you can check what you charge against what disposal actually costs you.

I stocked up on tanks before a price increase. Does that wreck my numbers?

No. Gus keeps tank and parts purchases in one steady line and flags a stock-up buy so a heavy month is not mistaken for a bad one.

I've fallen behind on tracking warranty checks and installs. Is it too late to catch up?

No. Hand over the bank statements you have, warranty reimbursements included. Gus works through the backlog and matches each one to the job it belongs to, so you are caught up faster than you would expect.

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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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