How can I tell whether a roofing company makes money on its jobs?

Financial statements show a roofing company’s results in total. They do not show which jobs made the result, or whether the owner’s estimating is sound. A buyer who wants to understand how the company really earns can ask for records at the job level. This page lists what to request. It does not judge any company, and your accountant is the person to interpret the numbers.

Estimates against what happened

Ask for a handful of finished jobs of different sizes, with the original estimate, the materials invoices and the crew hours. Lay them side by side. You are looking for whether the estimate method works and whether the owner can explain the gaps. The records show how the company tracks its jobs, or that it does not.

Change orders and surprises

Roofs hide rot, damaged decking and other surprises once the old layer comes off. Ask how those were found, priced and approved with customers, and whether they were put in writing before the work went ahead. Unrecorded extras are a common reason the books and the real job disagree. Our answer on work that comes mostly from one builder is also worth reading.

Warranty returns and repeat crews

Ask for a list of callbacks and warranty repairs, who did the original work, and what the company spent to fix each. Then ask which crews have stayed and which have turned over. Crews who have worked together for years tend to install more consistently, which shows up as fewer callbacks. Ask for the same detail on any subcontractors used in place of employees.