Summer is the big season for most contractors. The days are long, the weather is better, and the work is steady. But when fall comes around, the phone can slow down. Jobs are still out there, but the rush is over. Meanwhile, the bills never stop. Payroll, equipment payments, insurance, and truck notes keep rolling in.
That is why cash flow is one of the biggest struggles contractors face this time of year. Here are a few simple ways to keep things under control as summer turns into fall.
1. Review What You Owe vs. What’s Coming In
It sounds basic, but many contractors do not really sit down and map this out. Write down every major bill coming due in the next 60 days. Then look at what jobs are scheduled and how much cash you expect to collect. This snapshot will tell you if you are on track or if you need to tighten up spending.
2. Speed Up Payments
If you are waiting on checks, follow up. A lot of contractors get in trouble because they are shy about calling clients or GCs about money owed. Don’t wait. The longer you wait, the more likely the money gets delayed.
3. Hold Back on Big Purchases
Fall is not the time to splurge on a new truck just because you had a busy summer. Keep your cash handy until you are sure your pipeline of jobs will carry you through.
4. Watch Labor Hours Closely
With fewer jobs, you cannot afford wasted time. If a crew spends half a day standing around waiting for materials, that is payroll you did not plan for. Small leaks like this add up fast when cash is tight.
5. Use Real-Time Job Costing
The best way to control cash flow is to know exactly where your money is going. If you are tracking job costs with pen and paper or trying to juggle spreadsheets, you are probably missing things. Software like ProfitDig lets you see in real time whether a job is draining your bank account or adding to it.
Cash flow problems are one of the main reasons small contractors fail. Don’t let that happen to you this fall. Plan ahead, keep a close eye on your numbers, and make sure you know where your money is at all times.