How Bookkeeping Can Help Roofing Contractors Stay Profitable
Running a roofing business is no small task. You manage crews, order materials, deal with changing weather, and handle demanding clients—all while trying to turn a profit. But in the middle of all that hustle, there’s one area that often gets overlooked: bookkeeping.
Here’s the truth: if you’re not keeping close track of your numbers, you could be losing money without even realizing it.
At TruePoint Accounting, we work with roofing contractors to help them take control of their finances, track job costs, and stay profitable year-round. Here’s how solid bookkeeping practices can make a huge difference for your roofing business.
💡 Why Bookkeeping Matters for Roofing Contractors
Roofing jobs involve a lot of moving parts:
Material purchases
Labor costs
Subcontractors
Permits
Equipment rentals
Without accurate bookkeeping, it’s hard to know which jobs are making you money—and which ones are draining your cash. Good bookkeeping helps you track costs, control cash flow, and make informed decisions.
✅ 1. Track Job Costs Accurately
Every roofing job is different—and so are the costs. Job costing allows you to assign income and expenses to individual projects so you can measure profitability per job.
Track the following:
Labor hours and wages
Shingles, underlayment, and other materials
Dumpster rentals or equipment usage
Travel and fuel costs
💡 Example: A roofing contractor noticed that jobs in a certain zip code consistently went over budget. After reviewing job cost reports, they adjusted their estimates and improved profitability by 15%.
✅ 2. Manage Cash Flow Proactively
Roofing projects can require large upfront costs. Without proper cash flow planning, you may find yourself short on funds before the job is done.
How bookkeeping helps:
Tracks when payments are due and when expenses hit
Sends automatic invoice reminders to customers
Forecasts future cash needs based on upcoming jobs
💡 Example: A contractor uses monthly cash flow reports to identify slow-paying clients and sets clearer payment terms to keep cash flowing smoothly.
✅ 3. Separate Personal and Business Finances
Mixing personal and business funds is a common mistake that leads to messy records and missed deductions.
Best practice:
Open a dedicated business bank account
Use a business credit card for all job-related expenses
Pay yourself a regular draw or salary
💡 Example: A roofer who separated finances was able to clearly see business expenses, making tax time easier and qualifying for a business loan.
✅ 4. Stay on Top of Subcontractor Payments and 1099s
Roofing contractors often work with subcontractors. If you’re not tracking payments properly, you risk IRS penalties for missed 1099 filings.
Tips:
Collect W-9s before starting work
Track all subcontractor payments in your books
Issue 1099-NEC forms by January 31
💡 Example: A small roofing company avoided penalties and reduced stress by using bookkeeping software to automatically track contractor payments and prepare 1099s.
✅ 5. Maximize Tax Deductions
From ladders to leased trucks, roofing businesses rack up many deductible expenses. But if you’re not logging those expenses properly, you’re likely leaving money on the table.
Bookkeeping helps you track deductions like:
Tools and equipment
Gas and mileage
Business insurance
Safety gear
Office supplies and software
💡 Example: A roofer who switched from manual spreadsheets to a cloud-based bookkeeping system uncovered over $7,000 in missed deductions at tax time.
🔍 Final Thoughts: Profit Starts with the Numbers
Staying profitable as a roofing contractor isn’t just about booking more jobs—it’s about tracking every dollar that comes in and goes out. Bookkeeping helps you:
✅ Understand your true job costs
✅ Keep your cash flow steady
✅ Avoid tax-time surprises
✅ Build a more scalable, sustainable business
At TruePoint Accounting, we help roofing contractors set up bookkeeping systems that are simple, reliable, and built for the way you work.
💬 Want to strengthen the financial side of your roofing business? Visit TruePoint Accounting to schedule a free consultation.
📣 Roofers, what’s your biggest challenge when it comes to managing money? Drop it in the comments—let’s tackle it together. 🛠️📊💼
