Bookkeeping for Exterior Remodeling Business – Part 1
If you are in the business of replacing windows, siding, gutters, etc. on homes, then you may want to track the various types of remodeling work that is most profitable for you.
What is key is to have an actual job folder for every single project that you sign a contract to. Within this folder is going to be (at a minimum) copies of estimates (along with the signed contract), copies of client payments, receipts for materials purchased and anything else that is relevant for that job.
You may need a bookkeeper or assistant that can take all of this information and enter it into some sort of financial software system so you can process reports for helpful information such as:
- Revenues and expenses for each type of work, such as:
- Gutters replacement
- Siding replacement
- Roof replacement
- Doors replacement
- Profitability for the different geographic locations, such as zip codes. Perhaps some locations have older homes that are always in need of upgrades.
- Commissions paid to sales personnel.
- Subcontractor costs for each subcontractor. You never know when you may need this information such as for insurance reasons or for 1099 purposes.
- Tracking labor and materials costs separately.
Maintaining all of this information, along with actually running your business, may seem scary at first, but as long as you maintain you financials each day (kind of like time tracking for professional service industries) for each job that you worked on (within that job folder perhaps along with relevant written notes on the outside of that folder), then the rest should be straightforward.
If you can afford it, then hire and work closely with a good bookkeeper or office assistant to help organize everything and data crunch the numbers into your software, say every week or month.
Note: AccuraBooks is a bookkeeping firm only, so please consult with your C.P.A. for verification and clarification about the contents of this article.