ROOFING JOBS LOOK PROFITABLE. THE BALANCE SHEET IS STILL THIN.
Roofing subcontractors run out of cash for reasons specific to how the work is built and billed, on jobs that are making money. The three that cost the most in this trade are below, taken from roofing contractor research. Most sit at 75 to 90 days from finishing work to holding the money, and 45 days is achievable.
Cash and profit are measured on different clocks. Your profit and loss records revenue when you invoice and costs when you incur them, while the bank account only knows what cleared. Labour goes out weekly and collects 45 to 90 days later, minus retention. That distance is what a growing, profitable roofing company funds out of pocket, and it widens as you grow. The specific things that widen it in this trade are what the rest of this page is about.
IN THEIR OWN WORDS.
You can bill as much as you want as often as you want, but if you're not getting paid, it doesn't matter.
Brian, RoofersCoffeeShop podcast, 2026
Checks that have been mailed out just never show up.
Brian, RoofersCoffeeShop podcast, 2026 (same source)
WHERE IT LEAKS OUT.
Storm restoration pays in pieces. The first check covers actual cash value; the recoverable depreciation gets held until the job is complete and documented. Supplements sit in an adjuster's queue for weeks. The roofer fronts labor and materials against a payment schedule the carrier controls.
Roofing is material-intensive. Shingles, underlayment, flashing, and membrane get paid at or before delivery. Crews get paid weekly. Commercial pay apps come back net-60 to net-90 with retainage on top. The supplier bill and the payroll both clear before the first receivable does.
Billing volume means nothing without collection discipline. Mailed checks disappear, approval chains stall, and the roofer's leverage drops the day the roof is dried in.
Demand peaks in fair weather; northern winters go quiet. Trucks, insurance, shop, and salaried staff bill all 12 months. Companies that spend storm-season cash like the phone rings forever hit January with full overhead and no draws.
WHAT MOVES MARGIN IN THIS TRADE.
The Carrier's Calendar
Storm work pays on the insurance company's schedule, not the roofer's. ACV first, depreciation held to completion, supplements queued for weeks. The roofer finances the gap on every claim.
Material-First, Paid-Last
Suppliers collect at delivery, crews collect Friday, commercial receivables land at net-60 to net-90 with retainage. The cash conversion cycle runs backward from day one.
The Thin Cushion
At 6.5 percent net for a $1M to $5M roofer, a single stalled claim or unmeasured indirect labor line erases the quarter. Margin this thin has no room for untracked cost. (cfos-job-profitability-system) ---
DAYS SALES OUTSTANDING.
Ninety days is weak, 45 is the target, 30 is strong. Nothing else moves cash faster.
| Position | Days | What it means |
|---|---|---|
| Weak | 90 days | Roughly three months of work funded out of your own pocket. |
| Target | 45 days | Achievable on the days you control: submission timing, complete documentation, follow up in week two. |
| Strong | 30 days | Requires discipline every month, and it's the cheapest capital available to you. |
Moving from 90 days to 45 frees roughly annual revenue divided by 365, times 45 days. At $4M that's about $493,000. At $8M it's about $986,000. That money doesn't come from a bank and it costs no interest, which is why we work the cycle before discussing financing anything.
ROOFING BENCHMARKS.
Roofing subcontractors at $1M to $5M net 7 percent, against a CFOS target of 10 percent, set at 10 percent before taxes or 3.5 points better than your trade's average at your revenue, whichever is higher. Working capital should sit at 13 percent of annual revenue, and the monthly close should finish by day 10 so the numbers can still change a decision.
FREQUENTLY ASKED.
