You got into construction because you’re good with your hands. You know how to build things, lead a crew, and get the job done. But paperwork? Spreadsheets? That’s the part most contractors hate.
The problem is, ignoring your numbers can cost you more than any tool or truck ever will. You don’t have to become a bookkeeper, but you do need to start thinking like one – at least a little.
Here’s how to do it without losing your mind.
1. Know What It Actually Costs to Do a Job
A lot of contractors guess when it comes to costs. They think they “know” what a job should take because they’ve done it before. But when you add up materials, labor, fuel, and wasted time, the real number is usually higher.
If you’re not tracking your job costs down to the penny, you’re probably underbidding.
Use a system that tracks every expense while you work – not after. ProfitDig does this automatically. That way, when it’s time to bid your next job, you can see exactly what each task really costs.
2. Cash Flow Is King
Even if you’re making money on paper, you can still go broke waiting to get paid.
A lot of small contractors run into cash flow problems because they don’t plan for delays. The materials bill hits first. Payroll is due every week. Then you wait 30 days for a check that shows up on day 45.
The solution is to plan ahead. Keep a small cushion in your account. Bill on time. Set clear payment terms. And when possible, collect deposits before you break ground.
You don’t need an accountant to manage cash flow – just awareness and consistency.
3. Don’t Mix Business and Personal Money
This one’s simple but deadly. If your gas, groceries, and job expenses all come from the same card, you’ll never have a clear picture of what’s really going on.
Keep business and personal completely separate. One account. One card. One source of truth.
When tax time rolls around, you’ll be glad you did. And during the year, you’ll be able to see your real profit instead of guessing.
4. Pay Attention to Trends
Thinking like a bookkeeper means looking for patterns. Are certain jobs always running over budget? Is one crew consistently slower than the others? Are certain materials always getting wasted?
Numbers tell stories. You just have to read them.
Set aside 15 minutes every week to look over your recent jobs. You don’t need to do deep math – just look for red flags. The earlier you catch a problem, the cheaper it is to fix.
5. Use Tools That Do the Math for You
You don’t need to love spreadsheets to stay organized. These days, simple job costing tools like ProfitDig make it easy to track expenses, crew hours, and materials in real time.
When the software handles the bookkeeping, you’re free to focus on building – not balancing.
Bottom Line
You’re not a bookkeeper, and that’s fine. You don’t have to be. But if you want to stay in business and actually make money, you need to think like one.
That means knowing where your money goes, keeping clean records, and learning from your numbers.
You can’t fix what you don’t measure. But once you start paying attention, you’ll find it’s not that complicated and your bank account will thank you.