Are You Actually Making Money on Your Jobs? Here’s How to Tell
You’ve completed the work, submitted the invoice, and received the final payment. The job’s finished - but does that mean it was profitable?
Getting paid is not the same as turning a profit.
Many construction business owners operate without a clear picture of job-level profitability. And without it, even successful-looking businesses can run into cash flow issues, underpricing problems, or thin margins that quietly erode long-term growth. If you’re not reviewing your project results in a structured way, you’re operating on guesswork - and that doesn’t lead to financial stability.
Why Job Profitability Isn’t Always Straightforward
Job-level profit isn’t always obvious, especially for small or growing contractors. Some commons reasons include:
Accounting ledgers such as Quickbooks Online don’t show job profit by default
Time constraints make it difficult to accurately track all costs
Overhead expenses like fuel, insurance, and equipment usage are not allocated to jobs, if they are even tracked at all
Projects move quickly, leaving little time to reflect on financial performance and make improvements before the next job
As a result, business owners often rely on gut feel instead of data and insights - and that’s where you can miss out on growth opportunities.
What You Actually Need to Know
Here’s an example of a very simple job profitability calculation:
Even if these figures are estimated, they can still provide valuable insight into the financial performance of your projects. Gross margin seems too low? You’re probably not pricing your jobs appropriately. Net margin seems slim? Your overhead costs may be too high for your current level of business.
Why This Matters
In the construction industry, you face constant pressures from tight margins, rising costs, and stiff competition. Knowing your numbers gives you an edge. Business owners who understand job-level performance are better equipped to price work more accurately, control overhead costs, identify and avoid unprofitable projects, and grow with confidence. Without this visibility, it’s easy to mistake a busy schedule for profitability.
Need Help Getting Started? We’ve Built One for You
At High Five Financial, we work with contractors who want more clarity and control over their financials but don’t have the time or systems in place to get there alone. That’s why we offer a one-time introductory service called the Job Profit Snapshot. It’s a straightforward way to assess a recent job’s financial outcome. Here’s what’s included:
A clear, visual breakdown of job revenue, costs, and profits
A concise, professional report you can review and share with your team
Key observations and recommendations to take with you to your next job
A video walkthrough to explain the findings in a quick and clear way
This service is available for a flat $300 and can be turned around in as little as ten days. There is no long-term contract or ongoing commitment.
👉 Learn more and request your Job Profit Snapshot here.
We also provide full-service bookkeeping for contractors. Contact us for a conversation to see how we can help your business succeed.
