Why year-end bookkeeping matters (and what I focus on)
As a working inspector who runs calls back‑to‑back, I don’t have time for a bookkeeping surprise in February. Year‑end bookkeeping isn’t just for taxes — it’s how I make clean decisions about pricing, equipment replacement, and whether a service line (termite/WDO or recurring pest plans) is profitable.
My short, practical year‑end checklist
| Task | Why it matters | Done |
|---|---|---|
| Bank & credit card reconciliation | Find missing payments, personal charges, and bounced checks | |
| Classify income by service (home, termite/WDO, repairs/coaching) | See true gross margins per service | |
| Finalize mileage log and vehicle expense | Maximize deductible miles vs actual expenses | |
| Review fixed assets & depreciation | Capture deductions and plan replacements | |
| Handle prepaid income and deposits | Record obligations properly (liability vs earned revenue) |
Step‑by‑step end‑of‑year actions I actually do
1. Reconcile every bank, credit card and payment processor
I run bank and card reconciliations line‑by‑line. If you accept online payments for inspections or recurring pest plans, pull the payment processor report and match it to deposits. A common field problem: a client pays with a credit card, the processor nets fees and batches deposits later — if you only compare gross invoices to bank deposits you’ll leave unexplained variance. I add a "merchant fees" expense and match deposits to the net amount.
2. Separate business vs personal (no exceptions)
I keep a small stash of reimbursable personal charges separate, but the rule is clear: business cards and accounts for the business only. If a personal charge slipped in, I either reimburse the business or record an owner draw. That avoids messy bookkeeping and keeps your CPA happy.
3. Classify income by service line
I tag every invoice as Home Inspection, Termite/WDO, or Recurring Pest Plan. At year end I run a profit & loss by tag. Example: I discovered my termite module had a higher margin once I accounted for recurring billing fees and chemical costs. Tagging also helps with marketing and deciding whether to raise prices on a service that has tight margins.
4. Finalize mileage with a trusted source
If you use automatic GPS mileage tracking built into your inspection app (I rely on apps with offline reliability), export the calendar and reconcile it with your calendar and job sheet. Decide whether to use standard mileage or actual expenses — you can’t switch methods for a vehicle in the same year without following IRS rules, so pick one and document why. I keep a one‑page mileage summary by vehicle for my CPA.
5. Count supplies and review inventory
For termite/pest work, inventory matters. Count chemicals, PPE, bait stations, and chargeable materials. Either expense small items or treat them as inventory if you resell. I add a short memo with quantities, unit costs, and remaining shelf life.
6. Review fixed assets and depreciation
Make a list of tools, laptops, moisture meters, and vehicles bought during the year. Small tools may be expensed under Section 179 (or local equivalent); others need depreciation schedules. I note purchase date, cost, and expected useful life for each asset — that speeds up tax prep.
7. Handle prepaid income and work authorizations correctly
Prepaid inspection deposits or recurring pest plan fees are liabilities until services are rendered. I make an adjusting entry to move year‑end prepaid revenue from "Customer Deposits" to "Inspection Income" for jobs completed. If you use an inspection platform with e‑signed work authorizations and recurring billing, pull the report that shows which plans were active and which services were fulfilled.
8. Review subcontractors and payroll
Are you paying helpers as 1099 subs or payroll? Confirm you have W‑9s and correct contractor classifications and issue 1099s where appropriate. For employees, reconcile payroll reports, vacation pay, benefits, and year‑end payroll taxes.
9. Export reports for your accountant
I export a tidy packet: reconciled bank statements, P&L by service, fixed asset list, mileage summary, inventory count, and copies of significant contracts and e‑signed authorizations. Many inspection platforms export CSVs or integrate with accounting software which saves hours. If you use an offline‑first mobile inspection app that syncs when you’re back in the office, make sure all reports are synced and exported before December 31.
Quick decisions I make now that save me money
- Buy or defer equipment? If a tool will be replaced within 90 days, I often buy it before year‑end to capture the deduction.
- Raise prices on low margin services? P&L by tag tells me which inspection types need a price increase.
- Convert one‑off jobs into recurring revenue? If recurring pest plans show predictable income, I push them with easy online signups and automated billing.
Tools and reports I use in the field
I rely on an inspection platform that puts invoicing, online payments, GPS mileage tracking and e‑signed work authorizations in one place. When I run year‑end reports I can quickly break down income by service, export invoices for reconciliation, and confirm recurring plan revenue. Offline capability matters when I’m in the field with no cell signal.
FAQs
Q: What is the first thing I should do for year‑end bookkeeping?
A: Start with bank and credit card reconciliations. Fixing bank mismatches early prevents cascading errors in income and expense classification.
Q: Should I use the standard mileage rate or actual expenses?
A: It depends. Standard mileage is simpler; actual expenses may be better if you have high vehicle costs. Pick one method and document it — switching has rules. Consult your CPA for your specific situation.
Q: How do I treat customer deposits for inspections?
A: Record deposits as a liability (customer deposits) until the inspection is completed, then recognize the income. For recurring plans, prorate revenue to the period earned.
See it in the field, not a sales deck
Inspection Authority was built by a Certified Master Inspector who still inspects every week. Home inspections, termite/WDO reports, recurring pest-control billing, and true offline mode — in one app.