Electrician bookkeeping in Edmonton, wired right.

Good electrician bookkeeping in Edmonton starts with an awkward truth: most electrical and plumbing shops are really two businesses sharing one van. One runs service calls, a few hundred dollars at a time, paid on the spot. The other runs project work, such as rough-ins on new builds in Ellerslie or a commercial fit-out downtown, billed in progress draws and paid weeks later.

Lump them together and you can't tell which one is making money. This guide covers what makes the books of electricians, plumbers and gas fitters different, and gives you a monthly routine that works whether you're a one-truck operation in Mill Woods or a crew of six covering Sherwood Park, St. Albert and Leduc.

1Electrician bookkeeping in Edmonton: split service from projects

Service work and project work have different margins, different cash flow and different risks. Set up your books to show them separately from day one.

In QuickBooks Online or Xero, the simplest approach is separate income accounts (Service revenue and Project revenue), plus project tracking or tracking categories for each larger job. Then your profit and loss tells you two stories instead of one blurry one.

For larger projects, the job costing approach in our contractor bookkeeping guide applies directly: tag every supplier bill, sub invoice and labour hour to the job, and compare it to the quote when you're done.

2Materials and van stock

Every trade buys materials, but electricians and plumbers also carry a rolling stock of wire, breakers, fittings, valves and connectors in the van. There are two sensible ways to handle it:

• Expense as you buy. For a small, steady van stock, record restocking runs as job supplies when you buy them. Simple, and fine for most one or two-truck shops.
• Track as inventory. If you carry a lot of stock or keep a warehouse, record purchases as inventory and expense what's used. You'll need a count at year end so your cost of goods sold is right.

Whichever you choose, the expensive mistake is the same: parts that leave the van but never make it onto an invoice. A quick parts list on every service ticket fixes most of it.

Project materials should be ordered and billed to the job. When your supplier bill covers two sites, split it in the books rather than guessing later.

3Apprentices, payroll and WCB

Most electrical and plumbing shops train apprentices, and that means payroll. Apprentices and journeypersons on wages are employees: you deduct CPP, EI and income tax from each pay, add your employer share of CPP and EI, and remit it to CRA (by the 15th of the following month for most small employers). At year end you issue T4 slips by the end of February.

• Track true labour cost. An apprentice's hourly rate isn't their real cost. Add employer CPP and EI, WCB premiums and paid time at school blocks if you pay for it.
• Stay current with WCB. Electrical and plumbing contractors with workers generally need WCB-Alberta coverage, and general contractors will ask for your clearance letter. Our WCB guide covers the details.
• Track grants and training separately. If you receive apprenticeship-related grants or pay for training, give them their own accounts so your accountant can treat them correctly.
• Don't pay helpers in cash. It creates payroll, WCB and tax problems that are far more expensive than doing it properly.

4GST and the costs electricians and plumbers can claim

Electrical and plumbing work is generally taxable at 5% GST, and Alberta has no PST. Most shops cross the $30,000 small supplier threshold quickly, either over four consecutive calendar quarters or in a single quarter, and have to register. Once registered, you charge GST on every invoice and claim back the GST you pay on business costs.

• Vehicle: fuel, insurance, repairs and lease or loan interest, based on business use. A service van that's used almost entirely for work is simpler than a personal truck used for both; keep a log either way. See our vehicle log guide for how CRA looks at it.
• Tools and equipment: larger tools and testers are capital assets claimed through CCA. Ask your accountant how smaller tools are treated.
• Permits and inspections: City of Edmonton and other municipal permit fees are a job cost. Bill them through where your contract allows.
• Licensing and training: certification renewals, code update courses and safety tickets.
• Software and phones: dispatch, quoting and field service apps, plus the business share of your phone.
• Workwear and safety gear required for the job.

If you're self-employed rather than incorporated, remember you pay both halves of CPP and may need to make quarterly instalments if your net tax owing is over $3,000 this year and in either of the two previous years. Moving 5% of each payment into a separate GST account, plus a share for income tax, keeps filing time calm.

A monthly routine for electricians and plumbers

5Mistakes that cost trades shops money

• Unbilled parts and extras on service calls. Small amounts, every week.
• No change orders in writing, so extra work on projects never gets invoiced.
• Receivables nobody chases. Builders paying in 60 or 90 days can starve a small shop of cash.
• One bank card for everything, so personal and business spending blur together.
• Missing GST numbers on supplier bills, which can cost you input tax credits.

Plum works with electricians, plumbers and other trades across Edmonton, Sherwood Park, St. Albert, Spruce Grove and Leduc on flat monthly fees, and if you're months behind our catch-up bookkeeping gets you current fast. Book a quick call and we'll show you what your service and project work are really earning.

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This article is general information for Alberta businesses and isn't tax or legal advice. Rules and thresholds change, so confirm your situation with your accountant or CRA.