494: Your Roofing Company Made Money. Can You Trust the Numbers?

An eight-figure roofing company is busy and completing plenty of work, but the profit is not what the owner expects. Dave Sullivan and construction accounting expert Diane Gilson explain how the timing of income and job costs can distort a roofing company’s monthly profit.

DESCRIPTIONHow can an eight-figure roofing company stay busy, complete plenty of work, and still wonder where the money went?

The owner’s accountant recommends cash-basis accounting. Other successful roofing contractors are telling him cash basis is completely wrong for a company his size.

So who is right?

Possibly both of them.

The accounting method used to prepare a company’s tax return may not provide the information an owner needs to manage the business.

In this episode, Dave revisits an important conversation with construction accounting expert Diane Gilson. They explain why a roofing company can appear highly profitable one month and lose money the next, even when its pricing and production have not substantially changed.

Diane calls this the gross profit roller coaster.

ROOFING BUSINESS HEALTH CHECKAre you busy but still wondering where the money is going?

The Roofing Business Health Check examines your financials, sales and marketing, operations, leadership, and systems.

Dave identifies the real problems and the three things you should fix first.

Learn more and talk with Dave: