Bookkeeping and financials for a kitchen remodeling company
Kitchen remodeling has the ugliest cash flow in home services: a deposit, a cabinet payment that goes out before the cabinets arrive, progress draws, change orders, and a final payment that depends on a punch list. Most owners run it from the bank balance and find out at tax time that the $3 million year was a 6 percent year. Clean books by the 10th, with job costing per project, is the difference between knowing which project types make money and guessing.
The mistake is one QuickBooks file with no classes, so a $70,000 kitchen and a $14,000 bathroom look the same. The second is deposits booked as revenue, which makes a strong quarter look stronger and the next one look like a collapse. After two weeks, working means the last three months reconciled, a cost report on each active project, and a one-page summary of gross margin by project type.