Cash Management and Cash Flow are Related

The cash flow of your construction business is directly related to how you manage that cash. We all know this but what exactly does this statement mean. The For Construction Pros website has an article as an end of the year service that addresses this and we recommend it highly. The article can be broken down according to the age old business plan that everyone follows one way or another.


There is the product sold (our construction expertise), the people who sell it (salesmen), and those who collect and watch the money (accounting). Now the small contractor may wear one, two or all three of those hats and that may be where the cash management takes the hit. Time spent selling the job and doing it is what we always make time for – this can put the accounting portion of the business on hold until a later time and it just might start piling up.


As the article above mentions it’s not just accounts receivable information that helps you control cash flow.  A great accounting approach can also show you how profitable your jobs are and whether you should bid similar projects.  There are times when will run into to a multitude of headaches with certain jobs and this approach can help you avoid those types of jobs in the future. This more objective analysis can give you an unbiased look at what types of jobs are really the most profitable.


Another way you can control and improve cash flow is by paying careful attention to costs.  Contractor’s Solutions offers high quality hand and power tools, high visibility clothing and safety equipment at prices that won’t break your budget.  Stop by our website today to see all of our affordable constructions items that can help you get the job done without overspending.

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