What financial reports should an electrician review?
The job profitability report matters most. It shows revenue minus costs for each project, telling you which jobs made money and which ones didn’t. Without this report, you’re guessing at whether a bid was profitable until you add everything up at year end. By then it’s too late to adjust pricing or stop taking work that loses money.
Look at actual costs versus estimated costs on each job. If you bid 80 labor hours and it took 100, you need to know that before you bid the next similar job. Material costs that came in higher than estimated should show up clearly so you can update your pricing or find better suppliers. Most electrical contractors underestimate how much profitability varies from job to job until they start tracking it.
The profit and loss statement shows overall company performance. Gross profit tells you what’s left after direct job costs. If gross margin is 25% but you expected 35%, either jobs are running over budget or you’re underbidding. Net profit shows what remains after overhead. Many electricians run profitable jobs but lose money overall because vehicle costs, insurance, office expenses, and owner draws eat up the gross profit.
Accounts receivable aging is critical for electrical contractors. You’re buying wire, panels, and fixtures before you get paid. A job that was profitable on paper becomes a cash drain when the GC takes 60 days to pay. Review AR weekly and follow up on anything past 30 days. The aging report shows who owes what and how long it’s been outstanding.
Cash flow gets complicated when you have materials on credit, payroll due weekly, and customers paying monthly. For day-to-day decisions, a simple cash position report showing current bank balance, expected receipts in the next 30 days, and expected bills due works better than the formal cash flow statement.
If you run larger commercial or new construction jobs, a work in progress report shows where you stand on open projects. It reveals whether you’ve billed ahead of work completed or completed work you haven’t billed yet. This matters for understanding your true financial position and for tax planning at year end.
Review job profitability after each job closes. Review P&L and AR aging monthly at minimum. Check cash position weekly. Most electricians don’t lack the ability to read these reports. They lack the time to generate them or the bookkeeping setup that produces accurate numbers. A small business bookkeeper in American Fork who understands construction can get your system producing useful reports so you actually know where you stand.
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More Questions
Should I outsource payroll or do it myself?
It depends on your employee count, tax compliance comfort level, and time value. Payroll software works for simple situations with 1-4 employees, but outsourcing pays for itself when complexity increases or your time is better spent elsewhere.
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Tag every material purchase to a specific job at the time of purchase. Write the job name on receipts, set up job references with suppliers, and enter expenses in your accounting software with job assignments. This gives you accurate job costs instead of guesswork.
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Yes. TRUEquity Bookkeeping is based in American Fork and serves contractors throughout the Wasatch Front. The firm specializes in construction accounting and job costing for contractors and tradespeople.
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Keep job-level documentation including contracts, material receipts coded to each project, and labor records. These records let you see profitability by job instead of guessing which projects actually made money.
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Track holding costs by property and decide whether to capitalize them into the property's cost basis or expense them. The treatment depends on what type of investor you are and what you plan to do with the property.
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Treat every service call as a mini-job in your records. Use field service software to capture parts at the point of service, connect it to your accounting system, and reconcile weekly to see which calls actually make money.
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