Understanding your financial picture in 2025

By Dani Sheehan.

Where does your business really stand, and what does your cash flow look like? Accounting software can help you answer these questions and set your business up for success even in economic uncertainty.

In today’s challenging economic climate, roofing companies face a unique set of challenges. Rising material costs, labor shortages and fluctuating demand can all impact profitability. To navigate these uncertainties, having a clear understanding of the financial health of your company is essential. Without the right tools, you can easily miss red flags or opportunities for growth. Using accounting software can offer the insights you need to manage challenges head-on and build a more resilient business.

How accounting software helps contractors understand their financial situation

1 – Real-time insights

Unlike spreadsheets and handwritten expense reports, accounting software tracks your cash flow in real time, giving you the whole picture to help identify shortfalls before they become a problem. With clear profit and loss statements, you’ll quickly see which projects are making you money and which ones are dragging down your bottom line.

2 – Budgeting and forecasting

When you do have a project that seems to be bringing you down, you can use your accounting software to help you budget. It will compare actual expenses against your estimates to show you where you’re specifically overspending and allow you to adjust quickly.  

In addition, these tools usually offer forecasting features so you can simulate various spending scenarios so you can anticipate rising costs. And these functionalities let you project your current spending trends weeks into the future, to see if you’re veering off course.

3 – Tax preparation and compliance

As a small business owner, there is never a wrong time to start planning for tax season. Accounting software automatically estimates taxes to help keep your records accurate and your business in compliance with tax laws. You can also see which expenses may be deductible to help maximize your savings.

4 – Project profitability insights

For every project, you can analyze how profitable it is before you accept the bid to make smarter decisions about the work you are choosing and where you should focus your efforts.

When you do complete your projects, the software automates invoicing, quickly sending the bill so you can get paid on time. If there are any outstanding invoices, you’ll have a list to help you follow up on late payments and improve your collections.

5 – Inventory and resource management

For contractors who work with inventory, you can also use accounting software to manage supplies, helping you avoid overstocking or running short and reducing unnecessary costs.

The path to smarter decision and stronger profits

By investing in accounting software, you are investing in good financial health. When you use tools to make your job easier, you’ll have better decision-making and clearer organization to work toward your goals. FOUNDATION®, leading accounting software offered by Foundation Software, was created exclusively for commercial construction and offers specialized features tailored to your unique roofing needs.

With Foundation Software, you’ll have the tools to navigate uncertainty, enhance profitability and build a more resilient business in 2025.