How do I track costs for a roofing company?
Track every roof as a separate job in your accounting software. Each project gets its own job number, and every expense related to that project gets coded to it. Materials, labor hours, dump fees, and subcontractors all need to hit the correct job so you can see actual costs versus your estimate when the work is done.
Set up cost categories that match how roofing work actually breaks down. Materials should be separated by type: shingles or metal panels, underlayment, flashing, drip edge, vents, fasteners, and sealants. This level of detail lets you see if material costs are running high because shingle prices went up or because your crews are wasting felt paper. Lumping everything into “materials” hides the information you need.
Labor is usually your second biggest cost after materials. Track hours by job, not just by day. If a crew works two jobs in one day, split the hours accordingly. The goal is knowing your actual labor cost per square so you can compare it to what you estimated. Roofing companies that track this discover which crew leads consistently beat their estimates and which ones always run over.
Code supply house receipts to jobs immediately. Waiting until the end of the week means you’re guessing which materials went where. Take a photo of the receipt and tag it with the job name, or use receipt scanning software that pushes directly into QuickBooks. Your suppliers probably offer job-coded invoices if you ask, which makes this even easier.
Dump fees and disposal costs add up fast on tear-offs. Track these by job so you know the true cost of that three-layer removal versus the simple overlay. Some roofing companies lose money on tear-offs because they underestimate disposal costs in their bids. You can’t fix that if you’re not tracking it.
Equipment rental, scaffold costs, and any subcontractor work for specialty items like skylights or metal trim should all hit the specific job. Proper construction job costing captures all these expenses so your profitability numbers reflect reality, not just the obvious costs.
Review job costs weekly during active projects. Don’t wait until the final invoice is paid to discover you lost money. Weekly review catches problems while you can still adjust, like realizing material waste is higher than normal and talking to the crew about it.
After each job closes, compare actual costs to your estimate. Look at cost per square for materials and labor. If you estimated $85 per square for labor and actual came in at $102, you need to know why. Was the pitch steeper than expected? Did the crew have downtime waiting on materials? That feedback loop makes your future estimates more accurate.
The payoff for tracking costs at this level is knowing which jobs actually make money. Residential re-roofs might look profitable until you realize the small jobs have proportionally higher setup and teardown time. Commercial flat roofs might seem less profitable per square until you see the labor efficiency on larger uninterrupted areas. A bookkeeper in American Fork who understands roofing can help you set up these tracking systems so the data is clean and useful for improving your bids.
Utah's Construction Bookkeeping Specialists
The Next Step:
A 15-Minute Call
We'll ask a few questions about your business, figure out what you need, and give you a straightforward price.
More Questions
What bookkeeping firms serve the Salt Lake City area?
The Salt Lake City metro has many bookkeeping options from solo practitioners to full-service firms. The right choice depends on your industry, the services you need, and whether you prefer local or virtual support.
Read answerHow do I track inventory for a construction business?
Most construction materials are job costs, not inventory. True inventory tracking is only needed for materials kept in stock before being assigned to specific projects. Focus on job costing for project-specific purchases.
Read answerCan QuickBooks track costs by project phase?
QuickBooks can track costs by project phase using sub-customers or sub-jobs to represent each phase. The setup requires intentional configuration and consistent coding of every expense, but most contractors can make it work effectively.
Read answerWhat expenses can a cleaning business deduct?
Cleaning businesses can deduct supplies, equipment, vehicle expenses, insurance, labor costs, marketing, and professional services. The challenge is tracking all the small purchases throughout the year.
Read answerWhat financial reports do I need to get a business loan?
Lenders typically require a profit and loss statement, balance sheet, cash flow statement, and two to three years of tax returns. Bank statements and accounts receivable aging reports are also common. Clean, accurate books make a stronger case.
Read answerWhat bookkeeping services are available in Utah County?
Utah County has a range of bookkeeping options from solo practitioners to specialized firms. The best fit depends on your business type and whether you need industry-specific expertise like job costing for construction.
Read answer