Your accounting system can give you hundreds of numbers. That does not mean you should monitor hundreds of numbers every month. Revenue, profit, cash, receivables, job costs, estimated costs, actual costs, Work in Progress, liabilities, margins, and dozens of other...
Your accounting system can probably produce more financial reports than you will ever want to read. Profit & Loss Statements. Balance Sheets. Cash Flow Statements. Job reports. Work in Progress reports. Accounts Receivable Aging. Accounts Payable Aging. And plenty...
You completed the work. Your employees have been paid. Materials have been purchased. Subcontractors may already have submitted their bills—or been paid themselves. You may even be looking at a profitable job. But the customer’s money still has not reached your bank...
A construction business can have money in the bank and still be financially stretched. There may be customer payments coming in, profitable jobs underway, and plenty of work on the schedule. But payroll is still due. Suppliers and subcontractors still need to be paid....
Your construction business can be busy without being financially healthy. Revenue may be growing. Jobs may be booked months ahead. Customers may be sending payments. There may even be a comfortable amount of money in the bank. Those are useful pieces of information....
