Bookkeeping for roofers - 7 Tips to Stay Organized

Running a roofing company is hard work. They manage crews, buy materials, and deal with unexpected delays. With all this work, money management becomes a big task.

Bookkeeping helps roofing companies know where their money goes. It shows how much each job really costs, how much profit is coming in, and how to plan for taxes. It also makes sure you don’t run out of cash when bills are due.  This helps business owners make a profit throughout the season.

In this guide, we’ll cover seven easy bookkeeping tips for roofers. You’ll learn how to track materials, manage labor costs, handle invoices, and use the right tools. Applying these tips helps roofing companies run more efficiently and make smarter financial decisions.

The Foundation of Financial Health for Roofers

Roofing businesses are not like regular companies. Work depends on the weather change. For example, a roofer might have five jobs scheduled in June, but a sudden rainstorm pushes everything back a week. Prices of the material becomes instantly high, and a bundle of shingles today may cost 5 times more than previous month.

In fact, the payments in roofing industry are not properly defined. Many jobs are paid in parts, and some payments come through insurance, which takes time to process. When roofing companies receive payments in parts, standard bookkeeping methods don’t work well.

The 7 Essential Bookkeeping Tips for Roofers

The tips below focus on practical ways roofing companies can manage their finances. Each one targets key areas like job costing, labor tracking, material management, retainage, tax deductions, invoicing, and specialized software. Following these strategies helps roofers manage their finances.

Tip 1: Implement True Job Costing for Roofing

Job costing is the process of tracking all expenses and revenue for each roofing project. It’s a key part of roofing business financial management because it shows exactly which jobs are profitable.

Why it matters: When we don't’ focus on job costing, roofers confuse and thinks every job they did was profitable. Hidden cost such as labor overtime, extra materials, and subcontractor fees cannot be ignored.

How to do it?

• Track every material purchase, labor hour, and subcontractor cost for each job.
• Compare actual costs to your estimates to see if you are under or over budget.
• Include hidden costs, like fuel for trucks or disposal fees.

Example: A roofer estimates a $5,000 job but doesn’t track extra nails and under estimates labor. At the end, the job costs $5,500, resulting in a loss on the project.

Tip 2: Master the Labor Burden Calculation for Roofers

Labor burden is the total cost of paying employees, like wages, taxes, insurance, and benefits. Many roofing companies tracks only hourly wages and forget about the extra costs.

Why it matters: Knowing the full labor cost helps in setting accurate job prices and making jobs profitable.

How to do it?

• Calculate employee wages, plus payroll taxes, workers’ compensation, and benefits.
• Add costs for training, uniforms, or safety equipment if applicable.
• Update labor burden rates regularly as wages or benefits change.

Example: If a roofer pays $20/hour but the labor burden is$8/hour, the actual cost is $28/hour. Pricing jobs without this number lead to losses.

Tip 3: Set Up a System for Tracking Roofing Materials Inventory

Roofers deal with lots of materials such as shingles, nails, underlayment, sealant. Material is wasted, stolen, or over-ordered if the team doesn’t keep a proper record of each item.

Why it matters: Poor material tracking inflates job costs and reduces profits.

How to do it:

• Keep a log of all materials purchased and used for each job.
• Regularly check inventory to prevent shortages or overstock.
• Assign responsibility to one person to maintain accuracy.

Example: A roofer buys 50 bundles of shingles but only needs 40. Since there was no track, the extra 10 bundles sit unused, tying up cash and taking storage space.

Tip 4: Streamline Handling Retainage in Roofing

Retainage is the portion of payment held back until a job is fully completed. It’s common in commercial roofing contracts, but it can complicate cash flow.

Why it matters: Mismanaging retainage can make a profitable job look like a cash flow problem.

How to do it:

• Record the retainage amount separately in your bookkeeping system.
• Monitor when retainage is released to ensure timely cash flow.
• Factor retainage into job pricing so you don’t shortchange your cash needs.

Example: A roofer completes a $20,000 job with $2,000 retainage. The books should show $18,000 as available cash and $2,000 pending, which helps reduce last-minute confusion.

Tip 5: Digitize for Maximum Tax Deductions for Roofers

Going digital makes bookkeeping easier and helps claim all eligible tax deductions. Digital records reduce mistakes and save time.

Why it matters: Many roofers miss deductions for tools, safety equipment, fuel, or vehicle use because records are messy.

How to do it:

• Use accounting software or apps to track receipts and expenses.
• Keep digital copies of invoices, mileage, and material costs.
• Categorize expenses properly to maximize deductions.

Example: A roofer keeps digital records of all vehicle fuel and tool purchases. At tax time, they can claim these expenses as deductions, which reduces taxable income.

Tip 6: Optimize Invoicing and Cash Flow

Roofing businesses need to send invoices promptly and keep track of cashflow. Even profitable jobs can cause problems if payments are delayed.

Why it matters: Poor invoicing leads to late payments, missed opportunities, and cash flow problems.

How to do it:

• Send invoices immediately after completing work or at agreed milestones.
• Track which invoices are paid, and which are outstanding.
• Use reminders or automated software to follow up on late payments.

Example: A roofing company sends invoices weekly instead of monthly. They receive payments faster, keeping the business cash-positive throughout the season.

Tip 7: Choose Specialized Software

Bookkeeping specific software for roofers saves time and reduces errors. Generic spreadsheets or basic software can’t handle the complexities of jobs.

Why it matters: Specialized software handles job costing, labor burden, retainage, and tax tracking all in one place.

How to do it:

• Send invoices right after finishing a job or at agreed points.
• Keep track of which invoices are paid and which are still pending.
• Use reminders or software to follow up on late payments.

Example: A roofer uses contractor software to track labor, materials, and retainage for each job. At the end of the month, the reports clearly show which jobs are profitable and which ones need price adjustments.

Conclusion

Every job, every invoice, every material purchase tells a story about how the company is performing. Many roofing businesses struggle because they treat bookkeeping as an afterthought. Payments come in stages, costs fluctuate, and retainage can make even profitable jobs look like a cash flow problem.

Good bookkeeping gives roofing companies a clear picture of their business. Knowing your numbers helps you to plan for bigger projects, invest in better equipment, and make decisions that strengthen your team and operations. It’s a way to protect the business from surprises and build a foundation that can handle seasonal ups and downs.

Roofing business growth starts with smart financial management. Atheneum helps roofers stay organized, track costs, and make informed decisions so every job contributes to profit. Book a consultation call with our team – today!