Skip to content

Who We Help · Fence & Deck Builders · Advisory & CFO

Fence and deck CFO services: pricing a season you cannot see the lumber price for

A fence and deck company earns most of its money in roughly thirty working weeks, quotes work months before it buys the material, and carries twelve months of overhead on that window. Three numbers run the business: margin per crew-day, the backlog you hold deposits against, and how many weeks of winter the fall cash will cover. We build those numbers and use them to set prices, hiring, and equipment decisions before the season starts.

By the AnalytIQ Accounting team · Last reviewed: September 12, 2026

Deck builder measuring and cutting lumber on a residential job site

At a glance · fence and deck builders

Not sure which applies to you? Get a free proposal or book 15 minutes.

GST/HSTTaxableFence and deck installs are fully taxable at 13%, charged on the full price, permits included.
Key formT5018Subcontractor payments get reported on a T5018 within six months of your year-end.
Watch forDeposits at year-endCustomer deposits sitting in the bank at year-end are income with a reserve, not free cash.
DeductionClass 12, 100%Hand and power tools under $500 each are fully deductible the year you buy them.

Quote to a margin, and defend it against the lumber market

The quote you give in March is a bet on what lumber will cost in June. Pressure-treated and cedar prices have moved sharply within single seasons in recent years, and a fixed-price quote with no protection turns every increase into your loss. The defences are contractual and operational. Quotes carry a short validity window. Contracts include a material-escalation clause where the customer will accept one. And when the deposit lands, the lumber is bought or price-locked with the yard, so the margin you quoted is the margin you build.

Ontario's consumer protection rules add a constraint most builders learn the hard way: when you give a consumer an estimate, as at the time of writing you generally cannot charge more than 10 percent above it unless the customer agrees to a change. That makes a documented change order the only safe way to pass a cost increase through mid-job, and it makes the price-lock at signing worth more than it looks. We also fix the markup-versus-margin confusion that sinks quotes: a 30 percent markup on cost is a 23 percent margin on price, and a season priced on the wrong one comes up short by the difference.

Crew-days are what you actually sell

You do not sell decks; you sell the days a crew can build them. A two-crew company with a May-to-October season has a fixed number of crew-days, and every quote, callback, rain day, and drive across the GTA spends them. We track revenue and gross margin per crew-day by job, which turns instinct into decisions. Composite decks carry a higher ticket and a higher material cost; whether they beat a wood deck per crew-day depends on your install speed, and the report answers that instead of the salesperson. Fence lines with long drives between them cost crew-days in the truck. Warranty callbacks are crew-days with no revenue attached, so we report them by crew and by product.

The same number tells you when to hire. A third crew only pays if the backlog will keep it busy at a margin that covers its truck, its tools, and its WSIB. The gross margin you need is not a rule of thumb; it is the figure that, multiplied by your crew-days, clears the overhead of a twelve-month business.

The backlog is your forecast, as long as deposits back it

Signed jobs with deposits are the most reliable forecast a builder has. We keep a backlog schedule listing each job's contract value, deposit held, expected build week, and expected final payment, and roll it into a 13-week cash flow that shows when balances will arrive and when lumber bills will hit. Then we apply a slip factor, because permits, inspections, and two weeks of rain move builds more often than not. A backlog that looks like six weeks of work is often eight weeks of calendar, and the cash flow has to reflect the calendar.

DecisionThe number that decides itWhat we track to get there
Raise prices or holdMargin per crew-day against overhead per season weekJob-level gross margin; material variance to quote
Hire a third crewBacklog weeks at target marginSigned jobs with deposits; conversion rate on quotes
Buy the skid steer or keep rentingRental spend per season versus ownership costRental invoices by job; expected utilization
Push wood or compositeMargin per crew-day by productInstall hours and material cost by build type
Cash to hold in NovemberOff-season fixed costs times months to first spring balancesOverhead schedule; historic first-invoice date

Winter: how much cash to carry and where the rest goes

The off-season question is arithmetic: monthly fixed costs — truck payments, insurance, shop rent, the owner's draw, software — multiplied by the months until the first spring final invoices, plus the tax, HST, and WSIB payments that fall in that window. That total is the cash the business needs in the account when the last fall job closes. Anything above it is available for equipment, debt paydown, or profit, and anything below it is a line-of-credit conversation to have in September rather than January.

We also put a number on the winter options. Snow removal keeps a truck and a person earning but adds insurance and its own risk. Prefabricating gates and panels in a shop over winter turns idle weeks into spring capacity, at the cost of carrying the material. Shutting down completely is the cheapest to run and the hardest on crew retention. None of these is right for every company; the cash model shows which is right for yours.

Buy, rent, or finance: equipment decisions with a short season

A skid steer, a dedicated auger, or a second trailer earns its keep only on the weeks it works, and a fence business has fewer of those than a year-round trade. We compare a season's rental invoices, pulled from the job costing, against the ownership cost including financing, insurance, storage, and maintenance, and we model financing that fits the season rather than a flat twelve payments. Fleet and material decisions cross the border more often than you would expect: composite decking, railing systems, and some equipment come from US manufacturers, and our cross-border guide for fence and deck builders covers what that does to landed cost. For how we work as a fractional finance lead across industries, see advisory and CFO services.

What we take off your plate

Advisory & CFO for fence and deck builders, handled.

  • Margin per crew-day tracked against a lumber market you cannot see ahead
  • Winter cash reserve sized to the off-season fixed costs
  • Monthly numbers with the three metrics that matter to you
  • Cash-flow forecast before a hire, lease or purchase
  • Bank and lender packages prepared
  • A quarterly sit-down on where the money went

Mistakes we fix

Three things that go wrong for fence and deck builders.

  1. Booking a customer deposit as revenue the day it lands instead of holding it as a liability
  2. Splitting one lumber invoice across jobs by guess instead of by the material list each job used
  3. Deducting a truck’s full cost as a fully expensed tool instead of the CCA class it belongs in

Recognise one? Book a call and we will tell you what it is costing you.

Services for fence and deck builders

Six services, one team that knows how fence and deck builders run.

Start with one. Add the rest when it makes sense; the books, payroll and tax already talk to each other.

Free proposal

A fixed fee for your advisory and CFO work, in writing.

  1. Tell us about your business. The form takes about a minute.
  2. A short discovery call. Fifteen minutes to confirm what you need.
  3. A fixed fee in writing. We reply within one business day. No hourly surprises.
  • Canadian and US filings under one roof
  • Cloud-first: QuickBooks Online, Dext, Wagepoint
  • Brampton, Ontario, with clients across Canada and the US

Related answers

How do I choose an accountant for my small business?Choosing an accountant comes down to a handful of practical questions: are they a CPA with actual experience in your industry, do they work on the cloud accounting stack you use or want to use, do they quote fixed fees or bill hourly, and are they proactive about planning rather than focused only on compliance.How do I hand a family business to the next generation tax-efficiently?A tax-efficient handoff usually combines an estate freeze, which locks in today's value and lets future growth pass to the next generation, with the intergenerational transfer rules that took effect in 2024, which can allow the lifetime capital gains exemption on a genuine sale to a child's corporation.How do I prepare for corporate year-end?Preparing for corporate year-end means working through a checklist in the weeks before your fiscal year-end date: reconcile every bank and credit card account, review receivables and payables, count inventory if you carry it, list fixed asset additions, clean up any shareholder loan balance, decide on a bonus or dividend, and tie out HST and payroll to your books.How do I qualify for a small business loan in Canada?Qualifying for a small business loan in Canada generally requires two to three years of financial statements or a compilation, current CRA filings for both the business and the owner, a debt service coverage ratio that shows the business can afford the payments, and often a personal guarantee from the owner.

Browse all 200 answers.

Common questions.

How do I protect a quote from lumber price increases?

Short validity windows, a material-escalation clause where the customer accepts one, and buying or price-locking the lumber when the deposit lands. Mid-job increases need a signed change order because of Ontario's 10 percent estimate rule.

What is the most useful number for a fence and deck company to track?

Gross margin per crew-day, by job and by product. It tells you whether prices, crews, and the wood-versus-composite mix are working, and whether a third crew would pay.

How much cash should I have going into winter?

Enough to cover fixed costs, the owner's draw, and the tax, HST, and WSIB payments from the last fall invoice to the first spring final payment, plus a slip allowance. We calculate it from your overhead schedule, not a rule of thumb.

Related reading

Numbers you can run a short season on.

Book a consultation and get a plain answer on exactly what applies to you.

Client Reviews

Free proposal

Get your free proposal.

Tell us a little about your business. We will prepare a proposal, and you can book a call with our team right after you submit.

Contact details

How can we help?

Type of enquiry select all that apply