I Recovered $180K in Hidden Cash Flow—Here’s How

Michael ran a $3.5M GC operation. Cash flow felt tight despite solid profit margins.
We audited his AR aging.
Noted: $180K sitting in invoices over 60 days old. Some hadn’t been touched in 90+ days.
His team was invoicing, then forgetting. No follow-up system. Customers weren’t paying because nobody was asking.
We implemented a simple AR collection schedule:
- 15 days: friendly reminder via email
- 30 days: phone call from the owner
- 45 days: stop new work until paid
- 60 days: collections specialist steps in
Three weeks later? $180K paid.
Here’s what most contractors miss: Cash flow problems aren’t always complexity. Sometimes they’re just friction in the boring stuff.
Most of that $180K wasn’t actually late. Customers just needed reminding.
The contractors winning on cash flow aren’t smarter. They’re systematic. They have a process. They stick to it.
If you’re in the 2-5M revenue range and cash feels tight despite good margins, audit your AR aging. That’s where the money usually is.
#CashFlow #Construction #AccountingBasics #ContractorWins

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.