Plumbing & water

Books and taxes for water line installers.

A municipal water tap fee passed through from the utility, a fire district hydrant contract paid on government terms, and a rural yard hydrant job billed by the foot of trench. 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
JulyExample month
$12,500
what you made

July came in at $12,500. The fire district hydrant contract paid on its usual 45-day government terms, so that check reflects work from two jobs back, not this month's crew activity.

  • Residential water line installWater line installs
  • Fire district hydrant contractMunicipal and fire district contracts
  • Rural yard hydrant installFarm and rural installs
  • City water utility tap fee, pass-throughTap and connection fees
  • Call-before-you-dig locate serviceUtility locate fees
Money in$49,300
Money out$36,800
Set aside for taxes$3,600
An example month. Yours will have your numbers.

Why your books are different

Water line and hydrant books go wrong in the same few places.

A generalist sees a dig job and a bill. Your business collects a utility tap fee that is not really yours, works government contracts on slow payment terms, and prices rural jobs by the foot of trench across open land. When the books do not know that, cash on hand and money actually earned tell two different stories.

  1. 1

    Utility tap fees are not your income

    Many water utilities charge a tap or connection fee that you collect from the customer and pass along, and booked as part of your job total, your real installation revenue looks bigger than it is while the pass-through fee gets missed at tax time.

    What we doKeeps the utility tap fee separate from your installation fee, so your real income and the pass-through amount both stay honest.
  2. 2

    Government contracts pay on their own slow schedule

    A fire district or municipal hydrant contract often pays on 45 or 60-day terms set by the government entity, not by you, and comparing the month you did the work to the month you got paid makes both months look wrong.

    What we doTracks income against when the work was actually done, so a slow government payment does not make a busy month look thin.
  3. 3

    Rural trenching is priced and costed differently than city work

    A farm yard hydrant job is often billed by the foot of trench across open land, with different fuel and equipment wear than a short city tap connection, and mixed into one category you cannot tell which type of job actually pays better.

    What we doKeeps farm and rural installs in their own category, separate from municipal and residential work, so you can compare what each type of job actually earns.
  4. 4

    Utility locate costs are a real line item, not a rounding error

    Every dig near a water line legally requires a locate call first, and the fees for that coordination add up across a busy season if they are not tracked against the jobs that required them.

    What we doKeeps utility locate fees in their own line, tied to the job, so the real cost of a compliant dig is visible.

Your categories

The categories Gus keeps for a water line installer.

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

  • Water line installsResidential and commercial service line connections.
  • Municipal and fire district contractsHydrant installs and repairs for government entities, on their payment terms.
  • Farm and rural installsYard hydrants and long trench runs on rural property.
  • Repair and replacementFixing a broken or leaking water line, billed apart from new installs.

Money out

  • Tap and connection feesFees paid to the water utility, passed through from the customer.
  • Pipe and fittingsWater line pipe, hydrants, and fittings from the supply house.
  • Crew wagesKept apart so you can see labor against the jobs it ran.
  • Trenching equipmentTrenchers and excavation equipment, plus fuel and maintenance.
  • Utility locate feesRequired call-before-you-dig coordination costs.
  • Truck and fuelFuel, repairs, insurance, and loan interest for the fleet.
  • Bonding and insuranceMunicipal contractor bonding and liability coverage.

What we watch for you

  • Government payment lag

    How long municipal and fire district contracts actually take to pay, so cash flow planning is realistic.

  • Job type margin

    What municipal, residential, and rural farm jobs each net, so bidding reflects real numbers.

  • Locate cost per job

    What utility locate fees run on average, so bids account for it.

  • The set-aside

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

Ask Gus

Things water line installers 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 the fire district check say two months late on the calendar but I'm getting it now?

Their contract pays on 45-day terms. I track income against when the work was done, so you can see it was already accounted for, not a surprise.

Are the rural farm jobs actually worth more than my city work?

I keep them in separate categories. Right now the farm installs are running a bit better per job once trench length is factored in. Worth a look at how you price city taps.

The tap fee I collect for the city, is that mine to keep?

Usually not. I keep it out of your income since it passes through to the utility, unless your invoice says otherwise.

The tax side

The tax side of a water line installation business.

Most of what goes wrong here is what counts as your income and when: a tap fee that is not really yours, and government contracts that pay on their own calendar.

What your return has to get right

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

  • Pass-through utility feesA tap or connection fee collected on behalf of the customer and paid to the water utility is usually not your income and not your deduction. Gus keeps it separate so it does not distort either side.
  • 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.
  • Trenching equipmentTrenchers and excavation equipment can usually be written off the year you buy them. Bonus depreciation is back to 100 percent for property acquired after January 19, 2025.
  • 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 line and yard hydrant installers miss

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

  • Truck and equipment fuel
  • Water line pipe and fittings
  • Hydrants and valves
  • Trenching equipment maintenance
  • Utility locate fees
  • Municipal contractor bonding
  • Uniforms with your logo
  • Liability insurance
  • Phone and radio for rural sites
  • License renewal
  • Continuing education courses
  • Small tools under the expensing threshold

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 line installer's year, kept every month.

New construction and farm work push hard once the ground is workable, while government contracts run on their own calendar. 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 municipal contract payments are landing on schedule.

  4. October

    Before frozen ground

    Trenching slows once the ground freezes. Before that, Gus looks at equipment you might buy 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 line and yard hydrant installers. 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 line installers ask first.

Does the utility tap fee I collect count as my income?

Usually not. Gus keeps it separate from your installation fee, since it passes through to the water utility rather than staying with the business.

How does Gus handle slow-paying municipal contracts?

He tracks income against when the work was actually done, so a government contract's 45 or 60-day terms do not make a busy month look thin.

Can Gus keep farm and rural jobs separate from city work?

Yes. They stay in their own category so you can compare what each type of job actually earns.

Are utility locate fees deductible?

Yes, they are an ordinary cost of a compliant dig. Gus keeps them in their own line tied to the job.

Do I need bonding tracked separately for municipal work?

Gus keeps municipal contractor bonding and your general liability coverage visible on their own, so you know what carrying that coverage costs you.

I have a backlog of municipal and farm job payments I never logged. Can Gus handle catching up?

Yes. Send the statements you have. Gus will sort tap fees, municipal contracts, and farm installs into their own categories, even catching up a backlog of several months.

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 plumbing & water

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