Cash: A contractor’s best friend – Cash flow forecasting can keep the relationship going strong

Description

Abstract: Many construction business owners may see cash flow forecasting as either a distraction from day-to-day activities or as a daunting, implausible undertaking. But getting a clearer picture of where a company’s dollars are going isn’t as difficult as one might think. This article shows how to estimate earnings with front-loaded billing schedules, and then, with data from estimated billing schedules and projected general operating expenses, to forecast cash flow in the near future. A sidebar lists five cash flow killers that can be prevented.