Timonium/Hunt Valley +1-410-296-6200 Frederick +1-301-662-2400 English Home About Services Industries FAQ Articles Client Portal Contact Us 3 TIPS TO IMPROVE CASH FLOW MANAGEMENT IN YOUR CONSTRUCTION COMPANY HomeConstruction Industry3 Tips to Improve Cash Flow Management in Your Construction Company 04 NOV / / MKS&H 3 TIPS TO IMPROVE CASH FLOW MANAGEMENT IN YOUR CONSTRUCTION COMPANY One survey of construction companies found that a whopping 28% of them cited cash flow as their biggest concern, which ranked it higher than finding new customers. As you continue to grow your business, maintaining good cash flow management becomes even more critical. If you have issues with cash flow, it can harm every level of your business including your ability to pay employees, order inventory, pay bills and more. How can you improve cash flow management at your construction company? 3 TIPS TO IMPROVE CASH FLOW MANAGEMENT AT YOUR CONSTRUCTION COMPANY Plan ahead to align the cash flow from your projects with your company’s cash flow. Some of your most significant expenses are predictable, like marketing costs, quarterly taxes and insurance premiums. You can plan on paying these when your cash flow coming in is significant and when you don’t have immediate expenses for your current projects coming up. We can help you with cash flow management so that you feel confident in knowing when the best time to pay large or quarterly bills is. When possible, break up your invoices to space out your expenses more. A long cash-flow cycle can be bad news for cash flow management. Try to purchase smaller amounts of inventory, hire staff just for busy seasons when possible or require payments upon ordering instead of upon delivery. In the same manner, you can also break up invoices into smaller chunks to make things easier on your customers as well. Just like sudden expenses can pop up in your personal life, they can also arise at your business. As part of your cash flow management, you should always have a cushion set aside. This will make sure that you don’t need to go into your personal savings or secure extra funding to bridge a cashflow gap. We can help you explore your best options for proper cash flow management and different ways to make sure that you are able to pay your current bills while bringing in payments from your customers. IMPROVE CASH FLOW MANAGEMENT AT YOUR CONSTRUCTION COMPANY WITH MKS&H MKS&H provides tax and accounting services to businesses of every size and in every industry, including construction. We can work with you to improve your company and make sure that it is financially secure now and in the future. Contact us today for a consultation. About MKS&H: McLean, Koehler, Sparks & Hammond (MKS&H) is a professional service firm with offices in Hunt Valley and Frederick. MKS&H helps owners and organizational leaders become more successful by putting complex financial data into truly meaningful context. But deeper than dollars and data, our focus is on developing an understanding of you, your culture and your business goals. This approach enables our clients to achieve their greatest potential. Like what you read? Sign-up for our C-Suite Spotlight Program. Construction Industry About Author MKS&H MKS&H is committed to providing personalized tax and accounting services while developing a deep understanding of you, your culture, and your business goals. Our full view of financial systems and the people behind them allow us create and evolve the best solution that will help you and your business thrive. The accounting experts and consulting professionals at MKS&H work together to help you achieve the financial results you want. RELATED POSTS 09 SEP / 0 Comments / MKS&H 5 TIPS TO PROTECT YOUR CONSTRUCTION COMPANY FROM BOND CLAIMS In the construction industry, it can be challenging to protect your company from the many claims that can arise as part of doing business. Even the most experienced construction contractors can find themselves in a dispute, and when those disputes escalate you might be presented with a bond claim.... Construction Industry Read More 15 JUL / 0 Comments / MKS&H HOW TO AVOID FRAUD AT YOUR CONSTRUCTION COMPANY Construction companies build the world around us, but they operate with surprisingly tight profit margins averaging around 3.5%. With material costs rising and things getting even tighter in some markets, it’s critical to understand the signs of fraud at your construction company so that you can prevent it and... Construction Industry Read More 13 MAY / 0 Comments / MKS&H WHAT CONTRACTORS NEED TO KNOW ABOUT THE PPP NECESSITY FORM As a construction contractor, if you received a Paycheck Protection Program loan over $2 million, you are going to be required to complete a form that verifies your need for the funding. This additional step was added by the Small Business Association to examine the operations and finances of... 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