Water Restoration Financials: What Every Owner Needs to Track

May 16

Because staying busy isn't the same as being profitable.

In the water restoration industry, jobs come fast, costs add up quickly, and cash flow can get tight before you even realize there’s a problem. If you're not regularly reviewing your financials, you're running your business blind—and that can cost you thousands each month.

Let’s walk through what you need to know about managing your water restoration financials, and how to stay in control of your company’s performance.

1. Understand the Flow of Money In and Out

Water restoration financials are unique:

You often do the work first
Invoice later after completion
And wait 30–90 days for payment

This lag creates a cash flow squeeze if you don’t plan for it.

Key report to review: Cash Flow Statement
Tip: Watch “Accounts Receivable” trends—especially overdue invoices from insurance jobs.

2. Track Job-Level Profitability

You should know exactly how much profit you made (or lost) on each job.

Materials
Subcontractors
Equipment usage
Labor (including burden: taxes, PTO, insurance)

If these costs aren’t tied to each job, your P&L won’t show the full story.

Key report to review: Job Costing Report
Tip: Include labor burden in your hourly labor rate so margins aren’t overstated.

3. Know Your Break-Even Point

What’s the minimum revenue you need each month just to cover your labor, rent, trucks, software, insurance, and marketing?

Fixed costs: Overhead
Variable costs: COGS and labor
Key metric: Break-Even Revenue

If you don’t know your break-even, you’re flying without a financial safety net.

4. Watch Your Labor Percentage

Labor is usually your second-biggest expense (after materials and subs). High labor percentages can quietly kill your profit—even if revenue looks strong.

Target: Keep labor under 25% of revenue
Include: Burdened wages (payroll taxes, PTO, workers' comp)

5. Review Your Financials Monthly—Not Annually

Too many owners only look at financials at tax time. By then, it’s too late to fix what’s already gone wrong. Monthly financial reviews help you:

Catch over-budget categories
Adjust pricing
Improve collections
Prevent cash shortfalls

Better Financials = Better Decisions

Tracking your water restoration financials isn’t about bookkeeping—it’s about visibility. When you understand your numbers, you can price confidently, plan ahead, and grow your business on purpose—not by accident.

Want Help Setting It All Up?

At Kiwi Cash Flow, we help restoration businesses clean up their books, track profitability, forecast cash flow, and make smarter financial decisions.

👉 Schedule a call here and we’ll walk through your financials together—job by job, dollar by dollar.

Michele Gray