Profit & Loss Audit Resources
Master your contracting business finances with our comprehensive profit and loss audit guide. Learn how to analyze profitability, identify cost overruns, and make data-driven decisions.
Profit & Loss Audit Tool
Get instant insights into your business financial performance with our easy-to-use profit and loss calculator designed specifically for contractors.
Real-Time Calculations
See your profit or loss calculated instantly as you enter your income and expenses.
Simple & Fast
Quick 3-field assessment to get started with your profit & loss analysis.
Contractor-Focused
Built with contractors in mind - perfect for assessing project profitability.
Why Conduct a P&L Audit?
- Identify Profitable Projects: Understand which types of jobs generate the best margins
- Control Costs: Spot areas where expenses are eating into your profits
- Make Better Bids: Use historical data to price future projects more accurately
- Plan for Growth: Identify opportunities to scale profitable operations
How to Use Our Tool
Key Financial Metrics for Contractors
Target Net Profit Margin
Healthy contracting businesses typically maintain 15-20% net profit margins
Labor & Materials
Direct costs should typically represent 60-70% of total project value
Overhead Expenses
Office, insurance, and administrative costs should stay under 15%
Warning Signs in Your P&L
Red Flags to Watch For:
- • Consistently low or negative profit margins
- • Material costs exceeding 40% of project value
- • Labor costs over 30% without equipment rental
- • Overhead expenses creeping above 15%
Take Action When You See:
- • Three consecutive months of losses
- • Declining profit margins over time
- • Cash flow problems despite profitable jobs
- • Unexpected cost overruns on multiple projects