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Cash Flow••4 min read

The GC Whose P&L Was a Liar

A general contractor displayed healthy profit margins on paper but faced cash flow struggles. Through improved accounts receivable management, retainage tracking, and cash forecasting, the business recovered $31,400 in forgotten funds and eliminated $16,500 in annual credit line interest.

Cory Salisbury
Cory Salisbury
Founder & Fractional CFO • Salisbury Bookkeeping

The GC Whose P&L Was a Liar

Brandon's profit and loss statement said he was rich. His checking account said otherwise.

Client: Brandon | Industry: Residential General Contracting | Annual Revenue: $2.4 million

The Problem

Brandon's P&L showed 22% gross profit margins, yet he struggled constantly to meet payroll. Accounts receivable averaged 61 days collection. Retainage across eight jobs lacked tracking systems. He maintained a $150,000 credit line at 11% interest.

What We Fixed

  • Built a 13-Week Cash Flow Forecast connected to active Buildertrend projects
  • Connected Buildertrend to QuickBooks
  • Tightened AR from 61 Days to 38 Days, freeing ~$150,000 in working capital
  • Created a Retainage Tracking System revealing $31,400 in forgotten retainage

The ROI

  • Recovered forgotten retainage: $31,400
  • Credit line interest eliminated: $16,500
  • Reduced LOC usage: ~$12,000
  • Total measurable impact: ~$59,900
  • Result: 1.4x ROI in year one
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