Roofing is a high-volume, high-velocity trade. A job that starts on Monday might be finished by Wednesday. But if your bookkeeping cannot keep up with your crews, you will bleed cash on materials and subcontractors without even realizing it.
The Cost of Bad Roofing Bookkeeping
Many roofers only look at their bank balance to determine if they are profitable. They get a large insurance check for a storm damage replacement, pay the supplier, pay the crew, and assume whatever is left is profit.
But when you don't use strict job costing, you miss the hidden margin killers:
- Material Price Fluctuations: The price of asphalt shingles changes rapidly. If you estimated a job three months ago but buy the materials today, your margin is already compromised. We track estimated vs. actual material costs so you can adjust your bids.
- Subcontractor 1099s: You hire a crew to handle a steep pitch. Did you get their W-9 and Certificate of Insurance before they climbed the ladder? We manage your subcontractor paperwork so you don't face a massive audit penalty.
- Insurance Claim Timing: Getting paid by the insurance company often involves ACV (Actual Cash Value) and RCV (Replacement Cost Value) checks separated by weeks or months. We track exactly what is owed to you so nothing falls through the cracks.
Our Bookkeeping System for Roofers
We configure QuickBooks to map directly to the way a roofing business actually operates.
We set up your Cost of Goods Sold (COGS) to track specific line items: tearing off the old roof, dumping fees, underlayment, ice and water shield, shingles, and flashing. By separating these direct costs from your truck payments and office rent, you will always know your true gross profit margin per square.