Why Xactimate Alone Isn’t Enough to Manage Your Water Restoration Financials
Estimating software is essential—but it’s not a complete financial system.
If you run a water restoration business, you’re likely using Xactimate. It’s the go-to tool for writing estimates that insurance carriers recognize and approve. And it’s a vital part of the job. But many restoration contractors make the mistake of assuming that because a job is written and invoiced in Xactimate, the financial side is covered.
In reality, Xactimate is just one part of your financial toolkit. Here’s what it does well—and where you need to supplement it with better systems and insights.
1. Xactimate Helps You Get Paid—but Doesn’t Show Profitability
Xactimate outlines what you’re allowed to bill based on standard pricing. It’s designed to ensure consistency and acceptance across carriers.
What’s missing: It doesn’t calculate your actual cost to complete the job. That includes burdened labor, equipment wear, administrative overhead, and any non-billable time.
Why it matters: You can complete a job with a $5,000 Xactimate scope and still only net $500 if your internal costs aren’t tracked.
2. It’s a Billing Tool, Not a Job Costing System
Xactimate scopes don’t reflect actual expenses. It won’t tell you if you used more labor than estimated, rented extra equipment, or paid a subcontractor to help finish the job.
What to do: Pair your scopes with internal job costing—either through software or a custom spreadsheet. That’s the only way to know if each job is actually profitable.
3. It Doesn’t Track Cash Flow Timing
A completed Xactimate estimate doesn’t mean the cash is in your account. Restoration contractors often face 30- to 90-day delays in payment, especially with insurance claims.
Key takeaway: Use your accounting system—not Xactimate—to track when payments are received and to forecast available cash for payroll, equipment, and overhead.
4. Supplements and Changes Require a Separate Process
Xactimate isn’t dynamic once a scope is submitted. If more damage is discovered or additional work is required, it needs to be documented, estimated again, and often negotiated.
Why this matters: If supplements aren’t tracked closely, jobs can end up underbilled—hurting your margin.
5. It Doesn’t Replace Monthly Financial Reviews
Xactimate won’t tell you:
If your labor percentage is trending too high
If your overhead is exceeding benchmarks
If you’re meeting your profit goals each month
That’s where financial reporting and KPI tracking come in.
Xactimate Is a Powerful Tool—But It’s Not Your Financial System
It’s essential for working with insurance companies. But to manage your restoration business, you need job costing, cash flow forecasting, overhead tracking, and profit analysis—none of which Xactimate provides.
Need Help Bridging the Gap?
At Kiwi Cash Flow, we help restoration contractors build a financial system around their Xactimate process. We track the metrics that matter—so you know what’s profitable, what’s not, and what to adjust.
👉 Schedule a call here and get financial clarity alongside your scopes.