Why busy contractors still run short
In contracting, money usually goes out before it comes in. Crews are paid weekly or biweekly, suppliers want payment on terms, and customers pay on deposits, progress billings and final completion, sometimes with retainage held back. Add seasonal swings, and a profitable business can still have tight months. Our guide on contractor cash flow walks through the main causes.
Two levels of planning
Monthly cash outlook. Included in Profit & Cash Flow. Each month we look at expected receipts and upcoming obligations, including payroll, vendor bills and known purchases, and talk through anything that needs attention.
Rolling financial forecast. Included in Strategic CFO Partnership, alongside an annual budget and budget-to-actual review. It extends the view further out, so hiring, equipment and growth decisions can be tested against the numbers first.
Common questions
Is a cash outlook the same as a budget?
No. A budget sets targets for the year. A cash outlook looks at when money is actually expected to come in and go out.