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A resource from RocketLevel for restoration company owners and finance leads, backed by decades of experience in the trade. About a 7-minute read.
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Make your own copy. Open the Financial Scorecard; Google will prompt you to save your own copy. Fill in the green cells and everything else calculates. It is yours to keep and edit. The sheet's results are estimates built only from what you enter, so check them with your own accountant.
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Revenue and the bank balance are real numbers, but neither tells you whether you are building a healthy company. Revenue hides your margin, and the bank balance hides what you already owe. Owners who run durable, profitable companies tend to watch a small, consistent set of numbers on a page they check every month, and this scorecard is that page.
A restoration company can be busy and unprofitable at the same time, and you will not see it in revenue or the bank account until it hurts. A financial scorecard makes the truth visible early: it shows you margin slipping, overhead creeping, receivables stretching, or cash tightening while there is still time to act. Put the vital few on one page, review them on a set rhythm, and most of those surprises stop.
You do not need dozens. These tell you most of what you need to know:
Revenue mix by division and by source (mitigation vs reconstruction, residential vs commercial, program vs non-program). Concentration is the risk this line exists to catch, so measure it with a number instead of a feeling. Take your single largest source as a share of trailing twelve-month revenue: at or under 10 percent is healthy, above 10 and up to 25 percent is the caution band where you keep watching and start building alternatives, and above 25 percent is the danger band where one carrier's program change or one property manager's departure reshapes your year. Read the boundaries literally, because they decide the verdict: exactly 10 reads healthy, exactly 25 reads caution. Those zones, counted at the parent company, and the stability test below are RocketLevel working thresholds. They proxy for how fast you could replace the source if it went away, which is the thing you actually care about and cannot measure directly. Score every source and manage the biggest one.
Keep that separate from the stability question, which is a different test on the same row. Stability asks how many points of total revenue one realistic decision by that source could move: a rate cut, a routing change, a program ending. Circle anything above 5 points. Above 10 is not up for debate. A source at 12 percent and a source at 60 percent can both clear that 10-point line, and they are very different businesses, which is why you run both tests.
Gross margin, by division. Mitigation and reconstruction price and perform very differently. A blended number hides which side is actually making money.
Division contribution. Gross margin tells you what a division earns on its jobs. Contribution tells you what it hands back to the company after paying for itself. Take the division's gross profit and subtract only the overhead that exists because that division exists: the project managers and estimators who work only that side, its trucks and trailers, its equipment storage, its software seats. Leave shared costs out, the owner, accounting, the main office lease, marketing, and set them against the combined total instead. Splitting shared overhead across divisions is an allocation choice, and every formula you pick starts an argument between division leads. Keeping it whole avoids the argument and still answers the question.
A worked example, with illustrative figures rather than benchmarks:
| Mitigation | Reconstruction | Company | |
|---|---|---|---|
| Revenue | $1,800,000 | $1,200,000 | $3,000,000 |
| Gross margin | 60% | 32% | 48.8% |
| Gross profit | $1,080,000 | $384,000 | $1,464,000 |
| Division overhead | $310,000 | $290,000 | $600,000 |
| Division contribution | $770,000 | $94,000 | $864,000 |
| Shared overhead | $600,000 | ||
| Net profit | $264,000 (8.8%) |
Total overhead here is $1,200,000, or 40 percent of revenue, close to the RIA average cited below. Reconstruction's 32 percent gross margin looks respectable on the gross margin line. Its contribution line shows it covers about 16 percent of the shared overhead ($94,000 against $600,000) while bringing in 40 percent of the revenue. Mitigation is carrying the company.
That does not mean you shut reconstruction down. A rebuild division that barely contributes can still earn its place if it keeps the customer from calling another contractor for the rebuild, or if dropping it would cost you mitigation referrals. The number tells you to fix reconstruction's pricing or trim its overhead, and to make that call on purpose. The scorecard sheet does not have a row for this yet. If you run more than one division, add one and fill it in every month, and pair it with Job Costing: Did You Actually Make Money on That Job?, which does the same math one job at a time.
Overhead as a percent of revenue. The Restoration Industry Association (RIA) 2025 Cost of Doing Business Report puts average total overhead at 38.53 percent of revenue for FY2024, on page 37, up from approximately 36 percent the year before. Pages 38 and 39 break it by revenue band, and the spread runs from 26.55 percent (companies at $30M to $49.9M) to 45.97 percent (companies at $1M to $2.99M), so compare against your band rather than the average. The 2025 report is a free download from the Cost of Doing Business download page (checked September 25, 2026), so the table behind the figure is reachable: download it and pull the page yourself. Use it as a sanity check on your own number. What matters is the rate you calculate from your own ledger, because if you do not know yours, you do not know your break-even.