An Accounting Matters perspective for plumbing business owners
1. Introduction – The Conversations That Aren’t Happening
At Accounting Matters, we have a lot of first conversations with plumbers who feel something isn’t quite right.
They’re busy. Turnover is up. Work is steady. But they’re unsure where the money is going, nervous about tax bills, or frustrated that their accountant “only appears once a year”.
And almost every time, we hear some variation of:
“I wish someone had explained this to me earlier.”
The reality is that many plumbers don’t need a different accountant — they need a better conversation with the right one.
Because there are things your accountant should be telling you about your plumbing business… but most simply don’t.
2. “Being Busy Doesn’t Automatically Mean You’re Profitable”
This is one of the most important things we tell plumbing clients — and one of the least discussed.
You can be:
- Fully booked
- Working long days
- Turning down work
…and still be underperforming financially.
Why? Because without proper reporting, it’s impossible to see:
- True job margins
- Labour vs material cost creep
- Fuel and van cost impact
- Subcontractor efficiency
Most accountants won’t tell you this because they don’t review your numbers during the year — only after it’s finished.
At Accounting Matters, we review figures quarterly, so we can spot when:
- pricing no longer reflects costs
- margins are shrinking silently
- certain job types are loss-making
Your accountant should be telling you which work makes you money — not just what your profit was last year.
3. “Your Tax Bill Is Predictable — If You Plan Properly”
One of the biggest frustrations we hear from plumbers is the January tax shock.
What most accountants don’t explain is this:
Tax bills are rarely surprises — they’re forecasts that weren’t shared.
At Accounting Matters, we believe no plumbing business owner should ever be shocked by tax.
That’s why we carry out Month-9 tax planning, where we:
- Forecast profits early
- Estimate tax liabilities before year-end
- Adjust drawings, salaries or dividends
- Plan investments or pension contributions
If your accountant only tells you what you owe after the year ends, they’re reporting history — not managing your business.
4. “CIS Isn’t Just a Deduction — It’s Your Cash Flow”
For plumbers working under CIS, this is a huge blind spot.
Many accountants treat CIS as an admin task:
- submit return
- deduct tax
- move on
What they should be telling you is:
- how CIS deductions affect weekly cash flow
- how much money HMRC is holding on your behalf
- whether you’re over-deducted
- when refunds should be claimed
- how pricing should reflect CIS impact
We regularly recover four-figure CIS refunds for plumbing clients who didn’t even realise they were owed money.
CIS should be actively managed — not passively endured.
5. “VAT Isn’t Just a Form — It’s a Strategy”
Another thing most accountants don’t explain properly is VAT strategy.
Plumbing businesses often drift into:
- the wrong VAT scheme
- incorrect reverse charge treatment
- VAT payments that damage cash flow
Your accountant should be telling you:
- whether the flat rate scheme still works
- when standard VAT is more beneficial
- how reverse charge affects profitability
- when to register voluntarily (and when not to)
At Accounting Matters, we regularly review VAT positioning because what worked at £80k turnover rarely works at £250k+.
VAT is not static — and your advice shouldn’t be either.
6. “Your Pricing Might Be the Problem — Not Your Workload”
This is a difficult conversation — and many accountants avoid it.
But the truth is, we often see plumbing businesses undercharging because:
- labour costs increased
- material prices rose
- fuel costs escalated
- admin time expanded
…but pricing never changed.
Your accountant should be telling you:
- what your true hourly rate is
- whether your overheads are fully covered
- if your margins are shrinking
- when pricing needs adjusting
Quarterly management accounts make this visible. Annual accounts hide it until it’s too late.
7. “Growth Changes the Rules — Whether You Notice or Not”
When a plumbing business grows, the financial rules change.
This often happens when:
- turnover passes £150k–£250k
- subcontractors are used regularly
- staff are employed
- vans are financed
- work becomes more commercial
At this stage, once-a-year accounting becomes dangerous.
Your accountant should be telling you:
- when you’ve outgrown your current setup
- when quarterly reporting becomes essential
- when to move from sole trader to limited
- how growth affects tax, CIS, VAT and risk
If no one is having these conversations with you — that’s a problem.
8. “Your Drawings Aren’t Free Money”
This is one of the most misunderstood areas.
Many plumbers take money when it’s available, without understanding:
- how it affects tax
- whether it creates director loan issues
- if it leaves enough for VAT or Corporation Tax
Your accountant should be telling you:
- what’s safe to take
- what needs setting aside
- how to smooth income
- how to avoid nasty surprises
At Accounting Matters, we help clients move from reactive drawings to planned remuneration, which dramatically reduces stress.
9. “Your Accounts Should Answer Questions — Not Create Them”
If you receive your accounts and think:
- “I don’t understand this”
- “What does this actually mean for me?”
- “What should I do next?”
…then your accountant isn’t finishing the job.
We believe accounts should:
- explain performance
- highlight risks
- show opportunities
- guide decisions
Not just tick compliance boxes.
10. A Real Example We See Far Too Often
A plumbing client comes to us:
- busy diary
- growing turnover
- tight cash flow
- tax anxiety
Their previous accountant:
- filed accounts once a year
- never discussed margins
- never forecast tax
- never reviewed CIS or VAT positioning
Within the first quarter with us, we:
- identified margin leakage
- forecasted tax early
- restructured pricing
- recovered CIS deductions
- implemented quarterly reporting
The client’s words?
“I finally feel like someone is actually helping me run a business.”
That’s the difference proactive accounting makes.
11. Why Most Accountants Don’t Say These Things
To be blunt:
- it takes time
- it takes trade knowledge
- it takes proactive systems
- it takes regular contact
Many accountants are set up for volume compliance — not advisory support.
At Accounting Matters, we deliberately built our service around trade businesses and ongoing insight, not once-a-year output.
12. What We Believe Your Accountant Should Be Doing
We believe your accountant should:
- talk to you during the year
- explain numbers clearly
- flag problems early
- help you plan, not panic
- understand plumbing-specific challenges
- protect your cash flow
- reduce tax legally
- support growth safely
That’s the standard we hold ourselves to — because anything less doesn’t truly support the business owner.
13. Final Thoughts – Better Conversations Create Better Businesses
Most plumbing businesses don’t fail because the owner isn’t skilled.
They struggle because the financial insight arrives too late — or not at all.
The right accountant doesn’t just prepare accounts.
They guide decisions, protect margins, and give you clarity.
And that starts with saying the things most accountants don’t.
14. Ready for a Different Conversation?
If you’re a plumber who feels:
- unsure where the money goes
- nervous about tax
- unclear on margins
- unsupported by your accountant
…it might be time for a better conversation.
📞 01773 747990
📧 welcome@accountingmatters.co.uk
🌍 www.accountingmatters.co.uk
At Accounting Matters, we tell plumbing business owners what they need to hear — not just what’s easy to say.