Bookkeeping and QuickBooks for Garage Door Companies
By BRIX Editorial Team · Updated
Bookkeeping for a garage door company centers on parts and deposits. Springs, openers and doors are expensive inventory, install customers often pay deposits weeks before the work, and repairs and installs earn very different margins. Track repair and install income separately, record parts as they're used and hold deposits as a liability until the job is done.
Key takeaways
- Split income into repairs, opener sales and installs, new door installs and commercial work.
- Parts on trucks are money sitting in a van. Count them and record what's used per job.
- A deposit on a new door isn't revenue yet. Many bookkeepers hold it as a liability until the install.
- Tech commissions and spiffs need to be tracked against the jobs that earned them.
- BRIX syncs invoices and payments with QuickBooks, categorizes expenses and reminds you of estimated tax dates. It does not file taxes or give tax advice.
Why do garage door companies need separate income accounts?
Because a spring repair and a new door install are different businesses that happen to share trucks. A repair is mostly labor and a few parts. An install carries a large material cost for the door itself. If both land in one "Sales" account, a busy install month can look great on revenue while profit barely moves.
| Account | Type | Notes |
|---|---|---|
| Repair income | Income | Springs, cables, rollers, off-track, tune-ups |
| Opener income | Income | Opener replacements and installs |
| New door install income | Income | Residential door sales and installation |
| Commercial service income | Income | Overhead and dock doors, service contracts |
| Parts and openers used | Cost of goods sold | Parts pulled from truck or warehouse for a job |
| Doors purchased for jobs | Cost of goods sold | Doors ordered for specific installs |
| Technician pay and commissions | Cost of goods sold | Field labor, spiffs and commissions |
| Inventory | Asset | Parts and openers on trucks and in the warehouse |
| Customer deposits | Liability | Deposits on doors not yet installed |
| Advertising and lead fees | Expense | Paid search, Local Services Ads, lead services |
For background, see chart of accounts and cost of goods sold. If you want a ready-made starting point, a QuickBooks chart of accounts template for contractors is on the way at quickbooks-chart-of-accounts-for-contractors.
How should you account for parts on the truck?
Treat parts as inventory when you buy them and move them to cost of goods sold when they're used on a job. That way a big spring order doesn't make one month look terrible and the next look amazing. Count trucks regularly, because shrinkage and unrecorded parts are common in a business where techs restock themselves.
BRIX inventory tracking shows what's on each truck and in the warehouse and what needs reordering. Whether you use perpetual inventory in QuickBooks or a simpler periodic count is a decision for you and your bookkeeper. Inventory turnover and truck stock explain the tradeoffs.
How do you know if installs are actually profitable?
Job cost every install: door, hardware, opener if included, labor hours, any second trip and haul-away of the old door. Compare that with the price. Installs often look fine until you count the extra trip for a missing part or the afternoon spent on a tricky header.
Run your own with the job costing calculator and the markup and margin calculator. How to do job costing in QuickBooks covers the setup.
How do you handle deposits on new doors?
Many bookkeepers record a deposit as a liability (customer deposits) when it comes in and move it to income when the door is installed. That keeps your revenue honest and reminds you that you owe the customer a door. Cash-basis and accrual-basis businesses can treat this differently, so confirm with your CPA. See accrual vs. cash accounting and, if your state regulates deposit amounts, contractor deposit laws.
What about tech commissions, sales tax and quarterly taxes?
- Commissions and spiffs. If techs earn a percentage on openers or upsells, record it per job so you can see true job profit. Commissions paid to employees go through payroll.
- Sales tax. States treat garage door work differently. Some tax parts and not labor, and some treat a new door installation as a capital improvement with its own rules. Read sales tax on labor vs. materials and check your state revenue department.
- Estimated taxes. If you expect to owe tax and don't have enough withheld, the IRS expects quarterly estimated payments (IRS). The quarterly estimated tax calculator gives a rough figure.
- Subcontracted installers. If you pay installers as independent contractors, you may need to file Form 1099-NEC (IRS). See 1099 for subcontractors.
- Trucks and equipment. Service trucks are often a large deduction. Ask about Section 179 and keep vehicle records per IRS Publication 463.
The full picture is on garage door software. If install quotes are piling up unanswered, see garage door sales; if calls are the leak, see the garage door AI receptionist.
Frequently asked questions
What accounting software should a garage door company use?
Most small garage door companies use QuickBooks Online, since bookkeepers know it and most field software connects to it. The setup matters more than the brand: separate repair and install income, track parts as inventory and hold deposits as a liability.
Are garage door parts cost of goods sold?
Parts and doors used on customer jobs are usually cost of goods sold. Parts sitting on trucks or in the warehouse are inventory until they're used. Your CPA can confirm the right treatment for your accounting method.
How do I record a deposit for a new garage door?
Many bookkeepers record it as a customer deposit liability when received, then move it to income when the door is installed and invoiced. Cash-basis businesses may handle it differently, so confirm with your CPA.
What is a good profit margin for a garage door company?
We haven't found a reliable public benchmark, and margins differ a lot between repairs and installs. Track gross margin by job type in QuickBooks, and compare it month to month instead of chasing an industry number.
Do garage door companies charge sales tax on labor?
It depends on the state and on whether the job is a repair or a new installation. Some states tax only parts, some tax repair labor, and some treat new installs as capital improvements. Check your state department of revenue.
Does BRIX file my taxes?
No. BRIX keeps the books current, categorizes expenses, tracks 1099 subcontractors and sales tax, and reminds you of estimated tax dates. Your CPA or tax preparer files and advises.
Related
- Garage Door Software for Repair and Install CompaniesGarage door software that answers broken-spring calls in seconds, dispatches the nearest stocked truck, follows up install quotes and syncs QuickBooks.
- AI Receptionist and Answering Service for Garage Door CompaniesAn AI receptionist for garage door companies: answers paid-ad calls on the first ring, handles price shoppers, books same-day spring repairs 24/7.
- Garage Door Leads: How to Book More Repairs and Sell More DoorsHow garage door companies get more from their leads: answer every paid call, sell options on site, follow up new door quotes and win back past customers.
- QuickBooks for contractors: the right version, real job costing and a sync that keeps the books matched to the jobsQuickBooks for contractors: Online vs Desktop, job costing with projects and classes, sync pitfalls, and how BRIX keeps QuickBooks matched to your jobs.
- Bookkeeping for contractors that keeps your books tax-ready all yearContractor bookkeeping that stays current: categorized expenses, 1099 subcontractor tracking, sales tax and quarterly tax reminders, synced to QuickBooks.
- What Is Inventory Turnover?How to calculate inventory turnover and days on hand for a trades business, with worked examples, how to read the result, and how to free up cash.
- What Is Job Costing?Job costing tracks what each job really cost vs. the estimate. What to track, a sample job cost report with variances, and a simple system for small crews.
- Job Costing CalculatorCompare estimated and actual job costs line by line. See your real gross margin, which costs ran over, and how much profit fade cost you on the job.
- Do Contractors Charge Sales Tax on Labor or Materials?Do contractors charge sales tax on labor, materials or both? The main state models, with California, Texas, New York, Washington and Florida rules.
- AI Receptionist & CRM for Garage Door Companies in Rochester, NYCold mornings snap springs and stall openers across Rochester. Answer stuck-door calls fast, quote replacements and keep invoices synced to QuickBooks.
Sources
- IRS, Estimated Taxes (checked October 19, 2026)
- IRS, About Form 1099-NEC (checked October 19, 2026)
- IRS, Publication 463: Travel, Gift, and Car Expenses (checked October 19, 2026)