1. Labor that never reaches the job
Time entered without a job code, drive time absorbed into overhead, and rework never reallocated all quietly reduce job margin without ever appearing on the job report.
2. Payroll taxes and burden excluded from cost
If job labor is costed at gross wages only, the true cost is understated by roughly 20-30 percent. Every job then looks more profitable than it actually was.
3. Material purchases recorded too broadly
Bulk material purchases posted to a general 'materials' expense account never make it back to the job that consumed them. Deposits often live in the wrong place too.
4. Change orders not reflected in the current margin
A change order is a mid-flight update to the estimate. If it lands in revenue but not in job cost — or vice versa — the current margin snapshot is misleading.
5. Processing fees, financing charges, refunds, and discounts
These almost always reduce actual margin. They rarely appear in the estimate. Small percentages compound quickly across a full production year.
6. Overhead hidden outside the estimate
Vehicle costs, insurance, sales commission, and office costs are real. They belong somewhere. Ignoring them at the estimate level produces jobs that look great on paper and starve the business of cash.
7. Receivables and active jobs consuming cash
The largest silent leak. Every dollar sitting in A/R or in an active job that has already consumed cost is a dollar the business is financing internally.
Next step
The 3-minute Financial Health Check will surface which of these leaks are likely to matter most for your current book of work.