Guide · Heating & air-conditioning shops
QuickBooks cleanup for HVAC companies: sorting service, installs, parts and plans
Short answer: HVAC books get messy where the business is busiest: service calls and installs lumped into one income account, parts and truck stock bought in bulk with no tracking, prepaid maintenance plans counted as income the day they’re sold, and financed trucks booked as one expense. A cleanup sorts the basics first, then splits service from installs so you can see which side pays the bills.
▶ Watch the free HVAC Fix video (about 3 minutes)Free · No email · No payment
Common QuickBooks mess-ups in HVAC shops
- One income bucket. Service calls, system installs and maintenance plans all land in “Sales,” so you can’t tell what’s profitable.
- Parts with no trail. Filters, capacitors and refrigerant bought in bulk are expensed the day they’re bought, with no idea what’s still on the trucks. Inventory tracking is only in some QuickBooks Online plans, so check yours.
- Maintenance plans booked as earned. A prepaid plan covers visits you still owe. When to count it as income depends on your accounting method; ask your CPA.
- Equipment and rebates. Big equipment purchases and manufacturer rebates coded inconsistently from job to job.
- Sales tax on equipment. Rules for parts and installed equipment vary a lot by state. A cleanup is a good time to list what you charge and ask your CPA.
- Tech payroll out of sync. Dispatch or payroll software and QuickBooks disagree about hours, pay or jobs.
What a DIY cleanup involves for an HVAC company
- Clean-file basics. Separate business and personal money, reconcile every account, empty Uncategorized.
- Split income. Separate income accounts (and products/services) for service, installs and maintenance plans, then recode the year so far.
- Decide on parts. With your CPA, decide whether to track parts as inventory or expense them, then apply it the same way every time.
- Book trucks and loans right. Financed trucks on the books as assets and loans, with each payment split between principal and interest.
- Line up maintenance plans. Keep a simple list of active plans and visits owed, and record plan sales the way your CPA recommends.
Example (made-up numbers): a shop with $180,000 of income in one “Sales” account recodes it into service, installs and maintenance plans, and finds that installs bring in most of the income while service calls carry a much higher margin per hour.
DIY kit or bookkeeper?
A kit tends to fit when
- you’re a small shop on QuickBooks Online
- your records exist and the mess is mostly coding
- you want to see service vs. install numbers yourself
- someone in the shop can give it a few hours a week
A bookkeeper is likely the better call when
- you’re more than a year behind, or a tax return is unfiled
- you have letters or notices about payroll tax, sales tax or 1099s
- you need clean books fast for a loan, a sale or a partner buyout
- nobody in the shop has a few hours a week to give it
- you carry significant inventory across several warehouses or many trucks
See the full kit vs. bookkeeper vs. doing nothing comparison.
The HVAC kit and its free video
HVAC Fix shows the steps on screen in a demo QuickBooks Online company. The free first video (about 3 minutes) covers splitting service from installs, parts and truck stock, and truck loans and service agreements. Watch it free on the HVAC Fix page. Using a field app too? See QuickBooks cleanup with Jobber or Housecall Pro.
Quick questions
Should an HVAC company track inventory in QuickBooks?
It depends on how much stock you carry and your QuickBooks Online plan (inventory tracking is only in some plans). Many small shops expense small parts and track only bigger items. Decide with your CPA, then be consistent.
How do I separate service and install income in QuickBooks?
Create separate income accounts, point each product or service item at the right one, and recode past invoices. New invoices then sort themselves.
Where do maintenance agreements go in QuickBooks?
Track them separately from regular service income. Whether a prepaid plan counts as income right away or over the plan’s term depends on your accounting method, so ask your CPA.
What’s the first thing to fix in HVAC books?
Separate business and personal money and reconcile your accounts. Splitting income is much easier once the totals are right.
Next step
Watch the free first video, then decide. If it clicks, HVAC Fix is $197 once, or $147 with launch code LAUNCH147 at checkout, with a 30-day money-back guarantee. If it doesn’t, the kit vs. bookkeeper comparison may help you pick another route.
The Books Fix makes educational videos and checklists. We’re not a CPA firm or a bookkeeping service, and nothing here is tax or accounting advice. Ask your CPA about your own books. Examples use made-up numbers.