You Are Busy All Year. Do You Know Which Jobs Actually Make Money?
A lot of contractors run hard all year, book plenty of work, and still wonder why the bank balance never grows the way the schedule suggests it should. The usual culprit is not pricing or volume. It is that the shop does not actually know, job by job, what each one cost. Without that, you are guessing at which work earns and which quietly bleeds.
Why a busy shop can still be unprofitable
Industry analysis puts a healthy net margin for residential HVAC in the range of roughly 8 to 12 percent, with plumbing often a little higher. Those are thin margins. They disappear fast when costs are not tracked at the job level. Common ways money leaks out of a ticket:
- Field labor that is not tracked to the job, so your true cost of the work is a guess.
- Materials pulled from van stock and never logged, which makes job costs fiction.
- Callbacks, non-billable drive time, and overtime that eat the margin without ever showing up on the invoice.
- Scope changes done on a handshake and never added to the bill.
Job costing turns a hunch into a map
Job costing simply means capturing what each ticket actually cost: the labor hours, the materials, any sub or equipment cost, and a fair slice of overhead. Do that across enough jobs and a picture appears. You start to see which job types carry real margin, which technicians and which neighborhoods run efficiently, and which kinds of work look busy but barely break even. That is the difference between working harder and working on the right things.
What our Ledger service does
Ledger is the done-for-you back office for the money side. We help you capture costs against each job so you can see real margin instead of guessing, keep materials and labor tied to the right ticket, and get a plain monthly read on which work is earning and which is dragging. It also keeps an eye on cash flow so a busy stretch with thin margins does not catch you short.
The honest part
This is not magic and it is not instant. Job costing is only as good as the inputs, so for the first stretch your crew needs to log time and materials to the right job, and we will help make that the path of least resistance rather than a paperwork burden. We are also not your CPA and do not replace one. What we do is give you the numbers to make decisions: which jobs to chase, which to reprice, and where your real profit is hiding. Most owners are surprised by what they find.