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Your Construction Company Is Profitable on Paper But Broke in Real Life
Your Construction Company Is Profitable on Paper But Broke in Real Life
Revenue is up. Jobs are booked. Crew is busy.
But your bank account says otherwise.
This is the number one problem I see with contractors doing $500K to $5M.
They confuse revenue with profit. And profit with cash.
Here is the truth:
- You can be profitable and cash-poor
- You can have a full backlog and still miss payroll
- You can grow 40% and go bankrupt
Why?
Because construction cash flow does not follow a straight line.
You front materials. You wait 30, 60, 90 days to get paid. You carry labor costs before the draw hits.
Without a real CFO function watching this? You are flying a plane with no fuel gauge.
The fix is not more revenue. It is visibility.
Know your cash position weekly. Track WIP. Forecast draws vs. expenses.
The busiest contractors are not always the most profitable. But the ones with financial clarity? They always win.
info@accountingsolutionsllp.com
