Bookkeeping for Drywall & Painting Contractors

Drywall and painting work runs on tight margins and high labor ratios. Your material costs are relatively predictable. What kills your margin is labor: callbacks for touch-ups, crews that drag on finish work, punch lists that take twice as long as they should. If your books don’t separate those labor costs by phase, every completed job looks the same on paper even though some of them quietly lost money.

What Drywall & Painting Contractors Need From Their Books

Labor-to-material ratio tracking. In drywall and painting, labor is the dominant cost. We track your labor-to-material ratio by job so you can see when labor costs are running higher than expected relative to the scope. A ratio that’s out of line on a specific job is an early warning sign.

Phase billing and cost tracking. Drywall work moves through distinct phases: hang, tape, finish, texture, prime, paint. Each phase has a different labor profile and a different cost per square foot. We set up your books to track costs by phase so you can see exactly where the money goes on each project.

Subcontractor cost allocation. If you’re subbing out any phase of the work (taping, spraying, texture), those costs need to be allocated to the correct job and phase. We manage sub invoices, match them to the right projects, and track them alongside your in-house crew costs.

Multi-project scheduling impact. Drywall and painting contractors often have crews bouncing between multiple projects in the same week. That makes labor allocation tricky. We work with you to set up time tracking systems that accurately capture which crew spent which hours on which job.

Punch list and callback cost tracking. Punch list work and callbacks are part of the business, but they’re also a hidden margin killer. We track callback labor and material as a separate cost category so you can see the true cost of warranty and rework.

Change order management. Scope changes on drywall and painting work happen constantly. Different finish levels, additional rooms, spec upgrades. Each change order needs to be tracked in your books so the revenue adjustment and additional costs are captured on the job.

The Problems We Solve for Drywall & Painting Contractors

Drywall and painting contractors come to us when their margins look thin across the board and they can’t pinpoint why. When they’re doing $3M in revenue but their books don’t show which jobs made money and which ones they should have priced differently. When a GC asks for a cost breakdown by phase and they don’t have it.

We also work with contractors who run both drywall and painting as separate divisions and need clear visibility into the profitability of each. Some shops make all their money on drywall and break even on paint. Others are the opposite. You need to know which.

Common Questions From Drywall & Painting Contractors

How do you handle crews working multiple projects in a week? We set up job-level time tracking and allocate labor hours to the correct project daily. Your job cost reports reflect the actual labor spent on each project, even when crews are splitting time.

Can you separate drywall and painting as profit centers? Yes. We set up separate revenue and cost tracking for each division. You’ll see a P&L for drywall, a P&L for painting, and a combined company view.

What about large-scale commercial work with progress billing? We manage your schedule of values, progress billing, and retainage for commercial contracts. Billing stays current and reconciled against your completed work.


Let’s Review Your Setup

We’ll look at your books and show you what phase-level cost tracking looks like for drywall and painting operations. If your margins need better visibility, we’ll build it.

Get your free financial review →