Bookkeeping for fence companies

Why does my margin look so good?

Usually because crew pay is sitting in overhead. Materials land on the job, but the people who set the posts land with the office rent. Example: the P&L says the jobs made 50%, and with crew pay moved onto them it's closer to 20%.

I move crew pay onto the jobs it built. Then what's left after materials and crew, before the office, is a number you can bid from.

The worked example, step by step

Which fence type makes me money?

You can't tell if materials never get tied to a fence type. Vinyl, wood, chain-link and aluminum don't carry the same margin, and a blended number hides which one is paying the bills.

I set up the books so every invoice and every materials bill carries the fence type. After a season you can see what each type left you per foot.

Why did a slow month look like a good one?

Customer deposits are probably landing in revenue the day they arrive. Example: a $5,000 deposit in November for a job built in March. November looks $5,000 better than it was, and March looks $5,000 worse.

I hold deposits as money owed to the customer until the job is built. Each month then shows the work you actually did that month.

What about the other trades?

Decking, roofing, concrete and landscaping companies have the same three problems with different materials. Everything on this page applies; only the job types change.