HVAC accounting that handles the seasonal swings.
Service agreement deferred revenue, refrigerant inventory, seasonal cash flow, and the tax planning that keeps shoulder-season payroll funded. Built for Denver-area HVAC companies.
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HVAC has the most predictable seasonality of any trade. July and January are great months. April and October are not. The accounting question that defines whether you survive year-five is whether you are managing cash through the slow months — or paying off summer credit cards in November.
We work with HVAC contractors running residential service, commercial mechanical, and refrigeration. The accounting framework that keeps shops solvent is the same: track service-agreement revenue as deferred (because the work has not been performed yet), forecast cash through shoulder season before you commit to spring hiring, and plan equipment purchases for the right tax year.
What we handle for HVAC contractors
- Service agreement accounting — annual maintenance plans booked as deferred revenue, recognized as visits are completed.
- Job costing with refrigerant, parts, equipment, labor, and burden coded per job.
- Seasonal cash flow projection running 6 months out so shoulder season is funded before it arrives.
- Equipment financing — buy vs lease analysis, Section 179 timing, manufacturer rebate accounting.
- Refrigerant tracking — federal Section 608 compliance and inventory accounting.
- Service vehicle depreciation with proper allocation between personal-use percentage and business.
- Subcontractor 1099s for installers and helpers paid as 1099 (and the misclassification screening that keeps you out of trouble).
Software we work in for HVAC
- ServiceTitan — the standard for shops with 5+ trucks. We reconcile the ServiceTitan-QBO sync monthly.
- FieldEdge, FieldPulse, Housecall Pro — alternatives for smaller residential shops.
- QuickBooks Online + QuickBooks Time — for shops not yet on a field-service platform.
Pricing
| Shop size | Monthly fee |
|---|---|
| 1–2 techs, residential service | $450 – $700 |
| 3–8 techs with service agreements | $750 – $1,300 |
| Mixed residential/commercial, 9–25 techs | $1,300 – $2,800 |
A 6-truck HVAC shop was booking all service-agreement revenue at the time of sale. They looked very profitable in spring (when most agreements are sold) and very unprofitable in fall (when the work was actually performed). After we moved to deferred-revenue accounting, the monthly P&L finally reflected reality — and they could finance shoulder season with confidence.
If you sell annual maintenance agreements, you need deferred-revenue accounting. Period.
If you carry refrigerant inventory above $10K, monthly inventory adjustments belong in your close.
If you scale past 5 trucks, add CFO advisory for the seasonal cash flow planning that a bookkeeper alone cannot provide.
HVAC books that show real profit, not seasonal illusion.
Deferred service revenue, real job costs, and a cash-flow plan for the slow months. Get a quote.
Frequently asked questions
How do I handle service agreement revenue?
Service agreement revenue should be deferred at the time of sale and recognized over the contract term as the maintenance visits are performed. Booking it all up front inflates current P&L and hides the cost of fulfilling the work later. We set this up in QuickBooks with a Deferred Revenue liability account and a recurring journal entry per visit.
Can you handle equipment manufacturer rebates?
Yes. Mfr rebates (Lennox, Carrier, Trane) typically reduce equipment cost when received. We code them as a contra-COGS reduction on the job they relate to, not as miscellaneous income — that keeps job-level margin accurate.
Do you track refrigerant for Section 608?
We track refrigerant inventory monthly and reconcile against EPA-required logs. We are not the certifying body, but our books support whatever audit format your state or federal regulator requests.
How do you forecast shoulder-season cash flow?
Each fall and spring we run a 6-month rolling cash flow projection that accounts for seasonal revenue collapse, fixed payroll obligations, and any service-agreement work in progress. The output is a clear answer to: "how much cash do you need to land on March 15?" — and what to do now to get there.
Is buying equipment through Section 179 the right move?
Usually — but timing matters. Section 179 has annual limits and can interact with state-level depreciation differently. We model the 2-year tax impact of a purchase before you commit, not after.