# Bookkeeping for Plumbers: QuickBooks, Parts Markup and Getting Paid Bookkeeping for plumbers means tying every supply-house bill, labor hour and invoice to a job so you know what each drain call, water heater and repipe earned. In QuickBooks that comes down to clean income and cost accounts, parts marked up on every invoice, sales tax handled the way your state requires, and receivables collected on time. ## Key takeaways - Supply-house account statements are where plumbing margins disappear. Tie each bill to a job, or at least to truck stock. - Decide your parts markup once and apply it on every invoice; parts used but not billed are pure loss. - Sales tax on parts depends on your state and whether the job is a repair or an improvement. - Property managers and builders pay slower than homeowners. Watch receivables weekly. - BRIX invoices and chases payments, syncs QuickBooks, and keeps expenses, 1099s and sales tax organized. It does not file taxes or give tax advice. ## Why do plumbing books get messy so fast? Plumbing books get messy because materials move faster than paperwork. A plumber grabs a PRV, two ball valves and a box of fittings at the supply house at 7 a.m., uses half on one job and half on another, and restocks the truck on Friday. All of it shows up as one line on a monthly account statement. Unless someone splits it out, nobody knows what any job really cost. Add a mix of pricing methods (flat-rate service calls, T&M repipes, bid remodels), customers who pay at the door and property managers who pay in 45 days, and sales tax rules that change depending on whether you fixed something or installed something new, and it's easy to see why plumbers dread tax season. ## How should plumbers set up QuickBooks? Plumbers should set up QuickBooks with income split by type of work and costs split by what drives them, then tag costs to jobs wherever possible. That way the profit and loss tells you whether service, installs or new construction makes your money, and job reports show which jobs did. **A practical QuickBooks account list for a plumbing shop** | Account | Kind | Examples | | --- | --- | --- | | Service and repair income | Income | Drain clearing, leak repair, fixture repair, trip charges | | Replacement and install income | Income | Water heaters, tankless units, fixtures, sump pumps | | Remodel and new construction income | Income | Rough-in, top-out and trim on bid jobs | | Job materials | Cost of goods sold | Parts bought for a specific job | | Truck stock replenishment | Cost of goods sold | Bulk restocks of fittings, valves, supply lines, wax rings | | Equipment for resale | Cost of goods sold | Water heaters, softeners, disposals installed and billed | | Subcontractors | Cost of goods sold | Excavation on sewer jobs, concrete cutting, drywall patch | | Permits and inspections | Cost of goods sold | Plumbing permits pulled per job | | Tools and equipment | Fixed asset or expense | Jetters, sewer cameras, cable machines, press tools | | Vehicles and fuel | Expense | Van payments, fuel, maintenance, insurance | _A sensible starting point, not accounting advice. Ask your CPA how to treat large tools and inventory._ The truck stock line is the honest compromise. You won't tag every wax ring to a job, but keeping restocks separate from job-specific parts at least tells you how much the trucks eat each month. For more on this, see [truck stock](https://www.brix.so/learn/truck-stock) and [inventory turnover](https://www.brix.so/learn/inventory-turnover). ## How much should plumbers mark up parts? Plumbers should mark up parts enough to cover the time spent buying, stocking and standing behind them, at a level that fits their market and pricing method. Rather than copying someone else's percentage, start from the gross margin you need on materials and work back to the markup. **Markup from target margin** ``` Markup % = Margin % ÷ (1 − Margin %) ``` Where: - Margin % = the share of the selling price you want to keep after the part's cost - Markup % = how much to add on top of your cost > **Illustrative example: a 50-gallon gas water heater swap** > > Heater cost from the supply house: $820. Flex connectors, venting adapters, expansion tank and fittings: $160. Labor: 4 hours at a $55 burdened rate = $220. Haul-away and permit: $95. > > Total cost: $1,295. If you want a 45% gross margin on the job, the price is $1,295 ÷ (1 − 0.45) = about $2,355. > > Example numbers, not industry figures. Use the [markup and margin calculator](https://www.brix.so/tools/markup-margin-calculator) and the [job costing calculator](https://www.brix.so/tools/job-costing-calculator) with your own costs. Flat-rate shops build the markup into the task price; T&M shops add it line by line. Either way the failure is the same: the $38 ball valve that got used and never billed. If your flat rates haven't been updated since supply prices last jumped, rerun them with the [flat-rate pricing calculator](https://www.brix.so/tools/flat-rate-pricing-calculator). The difference between markup and margin trips up a lot of owners, and [markup vs. margin](https://www.brix.so/learn/markup-vs-margin) clears it up. ## Do plumbers charge sales tax on parts? Whether plumbers charge sales tax on parts depends on the state and the kind of job. In some states the plumber pays tax when buying materials and doesn't charge the customer; in others the parts are taxable on the invoice; and many states treat repairs differently from capital improvements. Labor can be taxable in a few states too. Get the rule for your state from its revenue department before you set up invoice templates, and ask your CPA about use tax on materials you pulled from truck stock for a job in another state. Start with [sales tax on labor vs. materials](https://www.brix.so/learn/sales-tax-on-labor-vs-materials), [use tax for contractors](https://www.brix.so/learn/use-tax-for-contractors) and your state's page under [taxes](https://www.brix.so/taxes). ## How do plumbers get property managers to pay on time? Plumbers get property managers to pay on time by sending the invoice the same day to the right person with the unit, tenant and work order number on it, and then following up on a fixed schedule. Most late commercial payments aren't refusals; the invoice got lost or is missing something AP needs. **Sample email reminder thread with a property manager** **BRIX (email, day 31):** Hi Priya, invoice #1187 for the kitchen drain clearing at 220 Oak St, Unit 4B (work order WO-5521, $285) is now past due. The invoice and payment link are attached. Thanks for taking a look. **Property manager:** We need a W-9 on file before we can pay new vendors. **BRIX (email):** Thanks, Priya. I've passed that to the office and someone will send the W-9 today. That exchange is a sample, not a real customer. Notice the reply that needed a person got handed to the office. BRIX keeps chasing on schedule until the invoice is paid, and you can see what's outstanding by customer. If you want a number for how long you wait to get paid, the [DSO calculator](https://www.brix.so/tools/dso-calculator) gives you one. ## What tax basics should a plumbing business owner know? - **Quarterly estimated tax.** Per the IRS, sole proprietors, partners and S corporation shareholders generally must pay estimated tax if they expect to owe $1,000 or more when filing, across four payment periods. See [quarterly estimated taxes for contractors](https://www.brix.so/learn/quarterly-estimated-taxes-for-contractors) and [how much to set aside for taxes](https://www.brix.so/learn/how-much-to-set-aside-for-taxes). - **Self-employment tax.** The IRS says you usually owe it with $400 or more of net self-employment earnings. The rate is 12.4% for Social Security plus 2.9% for Medicare. See [self-employment tax](https://www.brix.so/learn/self-employment-tax). - **Subs and 1099s.** Excavators, concrete cutters and other subs may need a Form 1099-NEC. Collect a W-9 before the first payment. See [W-9 for subcontractors](https://www.brix.so/learn/w9-for-subcontractors). - **Tools and vans.** Jetters, cameras and vans are often depreciated or expensed under Section 179. See [depreciation](https://www.brix.so/learn/depreciation) and [Section 179](https://www.brix.so/learn/section-179-deduction). - **Keep the paper.** The IRS says to keep records 3 years in the general case and employment tax records at least 4 years. > General information only, not tax, legal or accounting advice. Rules vary by state and change over time. Confirm with a CPA or enrolled agent. ## Where BRIX fits in a plumber's books BRIX handles the daily grind that keeps the books clean: finished jobs become invoices with the parts on them, unpaid invoices get followed up automatically, customers, invoices and payments sync to QuickBooks, expenses are categorized, 1099 subs and sales tax are tracked, and you get reminders before estimated tax dates. Your CPA still files and advises. BRIX turns completed plumbing jobs into invoices, chases unpaid ones, syncs customers, invoices and payments to QuickBooks, tracks what's on the truck, and keeps expenses, 1099 subs and sales tax organized. BRIX does not file taxes or give tax advice. - [Invoicing and payments](https://www.brix.so/features/invoicing-payments): Turns finished jobs into invoices and politely chases unpaid ones until the money is in your account. - [QuickBooks sync](https://www.brix.so/integrations/quickbooks): Syncs customers, invoices and payments with QuickBooks so the books match the jobs. - [Bookkeeping and tax help](https://www.brix.so/features/bookkeeping-taxes): Keeps expenses categorized, tracks 1099 subcontractors and sales tax, and reminds you of quarterly estimated tax dates. BRIX does not file taxes or give tax advice. - [Inventory and materials](https://www.brix.so/#use-cases): Tracks what is on the truck and in the warehouse and what needs reordering. Already invoicing from Jobber or Housecall Pro? We'll agree during setup which system sends invoices to QuickBooks so nothing doubles. For calls and dispatch, see the [plumbing software hub](https://www.brix.so/for/plumbing); for closing more estimates, see [plumbing leads and sales](https://www.brix.so/for/plumbing/sales). ## Frequently asked questions ### Is QuickBooks good for plumbers? QuickBooks works well for most small plumbing businesses, mainly because CPAs know it and it handles invoicing, expenses and sales tax. Its weak spot is field work: jobs, schedules and calls. That's why plumbers usually pair it with field or office software that syncs customers, invoices and payments into it, which is what BRIX does. ### What is a good profit margin for a plumbing business? It varies with your mix of service, installs and new construction, and with how you pay yourself. Service work usually carries higher gross margins than bid construction. Job cost a few months of work, then price for the margin you need using the markup and margin calculator rather than chasing a published average. ### How do plumbers track job costs? Tag every supply-house purchase, labor hour, sub and permit to the job it was for, then compare total cost to the invoice. Keep bulk truck restocks in their own account so they don't distort individual jobs. Our job costing guide and calculator walk through it with examples. ### Can plumbers deduct their van and tools? Business vehicles and tools are generally deductible, either through depreciation over several years or faster under rules like Section 179, subject to limits and business-use percentage. Mixed personal use reduces the deduction. Keep mileage logs and receipts, and confirm the method with your CPA. ### How often should a plumbing business do its books? Weekly for invoicing, collections and categorizing expenses, and monthly for reconciling bank and card accounts in QuickBooks. If it waits until quarter-end, supply-house bills pile up and nobody remembers which job they were for. Automating invoices and syncing to QuickBooks cuts most of the weekly work. ### Does BRIX do my taxes? No. BRIX keeps your records organized, tracks sales tax and 1099 subs, and reminds you of quarterly estimated tax dates, but it does not file returns or give tax advice. Your CPA or enrolled agent handles filing, and they'll get cleaner records to work from. ## Related - [Plumbing Software That Catches the 2 a.m. Call and Gets You Paid for It](https://www.brix.so/for/plumbing) - [Plumbing Answering Service That Gets the Water Off and the Plumber Booked](https://www.brix.so/for/plumbing/ai-receptionist) - [Plumbing Leads: How Plumbers Get More Customers and Close Bigger Jobs](https://www.brix.so/for/plumbing/sales) - [Bookkeeping for contractors that keeps your books tax-ready all year](https://www.brix.so/features/bookkeeping-taxes) - [QuickBooks for contractors: the right version, real job costing and a sync that keeps the books matched to the jobs](https://www.brix.so/integrations/quickbooks) - [Markup vs. Margin: What's the Difference?](https://www.brix.so/learn/markup-vs-margin) - [Markup and Margin Calculator](https://www.brix.so/tools/markup-margin-calculator) - [Do Contractors Charge Sales Tax on Labor or Materials?](https://www.brix.so/learn/sales-tax-on-labor-vs-materials) - [What Is Truck Stock?](https://www.brix.so/learn/truck-stock) - [Pipe Size Calculator](https://www.brix.so/tools/pipe-size-calculator) ## Sources - [IRS, Estimated taxes](https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes) (checked 2026-10-19) - [IRS, Topic No. 554, Self-Employment Tax](https://www.irs.gov/taxtopics/tc554) (checked 2026-10-19) - [IRS, How long should I keep records?](https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records) (checked 2026-10-19) --- Written by BRIX Editorial Team. Last updated 2026-10-19. General information, not tax, legal or financial advice. Canonical: https://www.brix.so/for/plumbing/bookkeeping