RenVU Professional Services Blog

The Financial Structure & Job Costing of a Family-Owned Electrical Business

Client Overview

  • Industry: Thomas Residential & Light Electrical Company

  • Size: 8 electricians + 1 estimator

  • Annual Revenue: ~$1.6M

The Challenge

  • Inaccurate job costing

  • Materials posted to overhead

  • Loan balances not reconciled

  • Sales tax inconsistencies

  • No cash flow forecasting

Objectives

  • Clean and reconcile 12 months of financials

  • Implement job costing structure

  • Correct COGS categorization

  • Establish cash flow reporting

  • Deliver tax-ready books

The Approach

1. Account Reconciliation

  • Reconciled all financial accounts

  • Corrected loan and equipment balances

  • Cleaned sales tax payable

2. Job Costing Implementation

  • Created a project-based tracking system

  • Separated materials, subcontractors, permits

  • Built gross margin reporting by job

3. Financial Reporting Upgrade

  • Delivered job profitability reports

  • Implemented the monthly work-in-process (WIP) review process

  • Established a 10-day monthly close system

The Results

Metric

Job Profitability Visibility

Gross Margin Accuracy

Sales Tax Liability

Cash Flow Forcasting

Tax Filing Confidence

Before Cleanup

None

Unreliable

Uncertain

Not available

Uncertain

After Cleanup

Real-time tracking

Accurate by project

Reconciled and current

60-day forecast implemented

Fully tax-ready books

Strategic Outcome:

The owner identified underpriced panel upgrade jobs and increased pricing by 12%, improving overall gross margin by 6% within one quarter.

Client Testimonial

For the first time, I know which jobs are making money and which aren’t. We adjusted pricing and immediately saw the impact. This completely changed how we estimate.

Key Success Factors

  • Proper cost of goods sold (COGS) classification

  • Project-level cost tracking

  • Monthly WIP review

  • Sales tax reconciliation

  • Cash flow forecasting implementation

Ongoing Support

Following cleanup, the client transitioned into monthly bookkeeping and financial reporting services, including:

  • Monthly job cost review

  • Gross margin monitoring

  • Sales tax filing support

  • Cash flow forecasting updates

  • Quarterly profitability analysis meetings

Subscribe now.

Sign up for our newsletter to get the most interesting stories of the day straight to your inbox before everyone else

About

Think of RenVU as your behind-the-scenes partner — keeping everything running smoothly so you can grow without burnout.