Restoration Accounts Receivable Calculator

As a restorer, one of the most important metrics to keep track of is turn-on receivables, or how long it takes to get paid. There’s no point in growing a $10MM restoration company if it means you’re getting paid in 6 months for every job. This can lead to a cash flow nightmare! We created the calculator below for restorers to be able to calculate how good they are at collecting money.

How do you calculate account receivables?

The formula for account receivables is [90-day average monthly sales / total accounts receivable outstanding * 365/12]. It means it takes x amount of time to get paid for all the work produced in the previous month.

Why Getting Paid Faster Matters!

Mastering cash flow is a critical piece to scale your restoration business.

How can I make sure I’m getting paid on time?

There are many ways to ensure you’re getting paid on time. We created this guide that walks you through everything in detail. Getting paid faster involves:

Ensuring your job site documentation is gathered in real-time and efficiently is critical. Having a digital work authorization signed in the field, great photo documentation, moisture mapping that tells the story of why your equipment was on the project for so long, and a certificate of completion demonstrating work was completed satisfactorily are all important components.

Most restorers take weeks to complete their invoice and submit it to materially interested parties. However, the clock starts ticking when the equipment is pulled off the job. Ensuring you’re invoicing your project within 24-48 hours of project completion is crucial.

As a restorer, you should be the least favorite person for someone to owe money to. Your team should follow up with all materially interested parties (customers, adjusters, mortgagors, etc) every 2-3 business days. If timelines aren’t met, phone calls should be made to supervisors of said materially interested parties and the conversation should become more serious. Tools like sending out intents to lien through Levelset can also apply more pressure.