Fire protection is one of the most specialized trades in construction, and the financial side is just as specialized. You’ve got new construction installation work with long project timelines and retainage. You’ve got recurring inspection and maintenance contracts generating steady monthly revenue. You’ve probably got prevailing wage obligations on public projects. And the compliance documentation requirements are heavier than most trades.
A general bookkeeper isn’t going to know what to do with any of that.
What Fire Protection Contractors Need From Their Books
Recurring inspection revenue tracking. Inspection and service contracts are the backbone of many fire protection businesses. We track recurring contract revenue properly, with deferred revenue recognition for prepaid contracts and clear visibility into your inspection division’s profitability separate from your installation work.
Installation job costing. Fire sprinkler and suppression system installation requires phase-level cost tracking: design, fabrication, rough-in, heads and trim, testing. We set up cost codes that match how you estimate and build so you can compare actual costs to bids at the phase level.
Prevailing wage and certified payroll. Fire protection work on public projects carries wage determinations and certified payroll requirements. We handle the certified payroll reporting, fringe calculations, and compliance documentation.
Material and inventory management. Pipe, fittings, heads, hangers, valves. Fire protection material costs are significant and need to be tracked by job. If you maintain an inventory of common fittings and heads, we track the usage and cost allocation.
Compliance and documentation support. Fire protection contractors operate under stricter regulatory requirements than most trades. We make sure your financial records support your compliance obligations and that cost data is available when you need it for audits or inspections.
Multi-division financial separation. Many fire protection companies operate a construction division and a service/inspection division. We separate the financials so you can see each division’s revenue, costs, and profitability independently.
The Problems We Solve for Fire Protection Contractors
Fire protection contractors come to us when their inspection contracts are generating revenue but they can’t tell if the margins justify the overhead of running a service division. When prevailing wage documentation has been inconsistent and they’re nervous about an audit. When they’re growing their installation side and need bonding-ready financials to pursue larger projects.
We also work with fire protection contractors who want to understand the lifetime value of their inspection clients. Knowing the revenue per customer over a five-year period changes how you think about customer acquisition and retention in the service division.
Common Questions From Fire Protection Contractors
How do you handle annual inspection contracts? Revenue from annual contracts is recognized over the contract period. We set up deferred revenue tracking so your monthly financials reflect earned revenue, and we track the profitability of your inspection division separately.
Can you manage prevailing wage on public fire protection work? Yes. We handle certified payroll, fringe rate calculations, and all DOL reporting requirements for fire protection crews working on prevailing wage projects.
What about fabrication vs. field installation cost separation? We track fabrication costs and field installation costs as separate cost categories within each job, so you can see the full cost breakdown from shop to site.
Let’s Talk About Your Setup
We’ll review your books and show you what fire protection-specific accounting looks like. Whether your focus is inspections, installations, or both, we’ll map out what you need.