Restoration logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Restoration logo
  • NEWS
  • PRODUCTS
    • New Products & Technologies
    • Submit Your Product
    • Interactive Product Spotlights
  • EDUCATION
    • KnowHow.
    • Podcasts
    • Trade Shows & Expos
    • Training & Certification
    • Webinars
    • Whitepapers
  • TOPICS
    • Water Damage
    • Fire & Smoke Damage
    • Mold
    • Contamination
    • Odor
    • Contents
    • Architecture
    • Catastrophe
    • Cleaning
  • BUSINESS
    • Managing Your Business
    • Insurance/Legal Matters
  • BUYER'S GUIDE
  • VIDEOS
    • Ask Annissa
    • Ask the Expert
    • Ironclad Marketing Minute
    • TradeTalks
    • Video Channel
  • INFOCENTER
    • Mold and Mycotoxins
  • THE EXPERIENCE
    • Conference & Exhibition
    • Convention & Trade Show
    • R&R Special Issue
  • EMAG
    • eMagazine
    • Archive Issues
    • Contact
    • Advertise
  • SIGN UP
ColumnsRestoration Training/EducationManaging Your Restoration BusinessRestoring Success

Restoring Success: Accounting for Contractors

By Lisa Lavender M.T.R., M.F.S.R., M.W.R.
restoring success accounting
May 31, 2018

When I received my degree in accounting from Penn State in 1996, I did not realize I would be using these valuable skills to start and grow a restoration company. Managing and understanding the accounting within your organization is important to the overall health of your company. Accounting practices and information are not just for owners and managers it can also provide useful tools to those running jobs and help you with everything from long-range planning to daily decision making. 

Not unlike the restoration industry, accounting has a variety of disciplines that play a role in restoration company operations: 

  • Tax
  • Financial
  • Managerial
  • Audit

In addition to the need for the most basic functions like paying the bills, filing the taxes, and processing payroll, there are a variety of areas that accounting practices, reporting, and understanding will help within your organization: 

  1. Financial Health: By developing and managing the accounting functions within your organization, you will have a clearer picture of your financial position as an organization, allowing you to better manage your overall health. Key elements to consider:
    1. Budgeting and Profitability
      1. Job Level
      2. Department Level
      3. Company Level
    2. Metrics and Goals
      1. Establish and monitor key metrics and goals that allow you to manage
      2. As a useful tool for individuals to meet performance objectives and goals (communicate expectations)
  2. Information: The more the developed your accounting system is within your organization, the more access there may be to timely and useful information for your team to manage the organization. 
    1. Financial Statements: There are a variety of key financial statements that may be produced at various intervals within your organization: Profit and Loss, Balance Sheet, and Statement of Cash Flows. Statements can be useful management and decision-making tools but are also helpful and sometimes necessary for external reporting. 
    2. Access to a variety of accounting information to people in various roles may help them best manage their responsibilities.  Examples maybe include job cost reports or actual to budget for overhead type expenses.      

As a restorer, accounting may not be your favorite thing or perhaps you may have a passion for number crunching; either way, it is a necessity and extends beyond having a balance in the checking account. The following are a few of my top tips from an Accountant Restorer: 

  1. Learn: There are a variety of ways to learn about accounting including classes and literature. A quick google search will present a variety of information on basic accounting principles. You can also learn from colleagues and business partners. 
  2. Software: Accounting software is a wonderful tool and can make accounting very easy. I encourage you to go beyond the functionality of an accounting software system and understand the relationship to your organization’s financials and between the various accounts.  A good start is to learn basic accounting and become familiar with debits and credits.  For example: 
    1. Enter a Bill
      1. Increases Accounts Payable > Increases a Current Liability (Credit to the Liability)
      2. Increases an Expense (Debit to the Expense)
      3.  Statements: Hits the Balance Sheet as a Liability and Expense on the Profit and Loss
    2. Pay a Bill
      1. Decreases Accounts Payable >Decreases a Current Liability
      2. Decreases Cash
      3. Statement:  Hits the Balance Sheet only
  3. Chart of Accounts: A solid well-designed chart of accounts is integral to your accounting system. The design of your chart will have a direct impact on your reporting abilities and the corresponding informational tools that may support the operation in the day to day. 
  4. Build a Trusted Accounting Team: You may outsource, have internal staffing, and/or a combination; the accounting team must be highly competent and trustworthy.  The accounting functions within your organization impacts many facets of the operations. The function of paying your bills on time consistently may have an impact on your ability to get critical resources on a job at any given moment. By virtue of the functions, those involved in the accounting will have access to confidential and sensitive information, access to resources including cash and credit available, and much that requires a high level of clearance and trust which leads me to the following tip…
  5. Internal Controls: Regardless of the size of your company, it is imperative that the processes and operations include the best internal controls and the optimal separation of duties that your organization’s structure will allow. The internal control system protects the company’s assets and resources but it also protects the team. If you have concerns about your internal control systems, work with your accountant to assesses and advise.

Accounting is a complex discipline and a vital part of our organizations.  Although this is a high-level overview and only scratches the surface, I encourage you give the appropriate attention to this vital part of the successful operation of your organization.  Happy Accounting and Happy Restoring!

KEYWORDS: financial success restoration business management

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Lisalrti0183fx

Lisa Lavender holds a BS in accounting from Penn State and is an IICRC Master Fire, Water and Textile Restorer. As chief operating officer and co-owner of both Restoration Technical Institute and Berks ∙ Fire ∙ Water Restorations, Inc., Lavender has over 20 years of experience in the restoration and reconstruction industry, and has been involved in the training other restoration professionals since 2012. In 2018, has expanded her passion for serving other restorers by partnering and becoming VP of operations design for iRestore software. In addition to contributing to the running of the operations of her organizations, she authors a monthly column for R&R, Restoring Success, writes, instructs and develops courses and materials in the pursuit of her passion to give knowledge, passion, and inspiration to others for success in the industry. You can reach her at lisa@RTILearning.com.  

Recommended Content

JOIN TODAY
To unlock your recommendations.

Already have an account? Sign In

  • mold remediation

    Fighting Mold and Bacteria Damage

    Successful mold remediation can be multidisciplinary,...
    Mold Remediation
    By: Josh Woolen
  • certifications and licenses for restoration professionals

    Certifications and Licenses Every Restoration Company Needs

    Restoration companies need to make sure they have the...
    Restoration Training/Education
    By: Sharon Elzarat
  • a wall covered in moss and fungus

    Zero Tolerance for Toxic Molds: Essential Steps for Successful Remediation

    Understanding the importance of zero tolerance for toxic...
    Mold Remediation
    By: Michael A. Pinto CSP, SMS, CMP, RTPE, FLS, ERS and Kendra Seymour
You must login or register in order to post a comment.

Report Abusive Comment

Manage My Account
  • eNewsletter
  • Online Registration
  • Subscription Customer Service
  • Manage My Preferences

More Videos

Popular Stories

Pop Art Female Superhero Punches a Masked Villain

TPAs vs. Independence: The Restoration Industry’s Own Version of the Cola Wars

RIA Carrier Advocate Mark Springer

Turning the Page: A New Era of Trust and Collaboration in Restoration

particle count hands-on demonstration of a HEPA filter

The Truth About HEPA Filters

Submit Your New Product/Technology to R&R!

Would you like to promote a new restoration, remediation or cleaning product/technology with Restoration & Remediation? Fill out the question below to start your submission:

Events

September 3, 2025

The Experience Convention and Trade Show

The Experience Convention & Trade Show logoJoin us in Las Vegas for The Experience Convention & Trade Show, the leading event for cleaning, restoration, and remediation pros, packed with hands-on demos, expert speakers, and high-impact networking. Happening September 3–5, 2025 at Caesars Forum—this is where the industry comes to learn, connect, and grow!

View All Submit An Event

Poll

Doffing PPE

When you are doffing your PPE, do you sanitize between every step?
View Results Poll Archive

Products

The Cleaning, Restoration, Inspection, and Safety Glossary

The Cleaning, Restoration, Inspection, and Safety Glossary

The Cleaning, Restoration, Inspection, and Safety Glossary.

See More Products
Prepare for CATASTROPHE with R&R!

Related Articles

  • restoring success TPAs

    Restoring Success: Building a Solid Foundation for Success with Program Work

    See More
  • responsibility

    Lessons in Accountability for Restoration Contractors: Managing the Four Excuses

    See More
  • using checklists for restoration operations

    Restoring Success: How to Effectively Use Lists for Restoration Operations

    See More

Related Products

See More Products
  • Cover.jpg

    How To Get More Water Damage Jobs (ebook)

  • COVER pdf.jpg

    How to Get More Restoration Jobs in 14 Days... (ebook)

See More Products
×

Stay ahead of the curve with our eNewsletters.

Get the latest industry updates tailored your way.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
    • Submit a Press Release
  • SIGN UP TODAY
    • Create Account
    • eNewsletters
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Reprints
    • Marketing Services
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing