0365: How To Manage Your Construction Firm’s Cash Flow During Crisis

<h1 style="text-align: center;"><span style= "color: #0000ff;"><strong>This Podcast Is Episode Number 0365, And It's About How To Manage Your Construction Firm's Cash Flow During Crisis</strong></span></h1> <div>Dealing with unexpected cash-flow difficulties, even if you're working hard to avoid shortfalls, is hugely distracting. A formerly reliable client might take much longer to pay than anticipated leaving you out of pocket. If you're starting a construction business, it could simply be taking longer than expected to turn a profit in these trying times.</div> <div> </div> <div><strong>Red light warnings</strong></div> <div> <p><span data-preserver-spaces="true">Develop red light systems to warn you automatically if something needs querying:</span></p> <ul> <li><span data-preserver-spaces="true">Check as early as possible if leads, orders, or sales, fall below a certain threshold, or a substantial customer ends their subscription (recurring service).</span></li> <li><span data-preserver-spaces="true">Pay attention to your <a href="../../../five-quickbooks-reports-every-contractor-needs" target="_blank" rel="noopener">Key Performance Indicators</a>. Make sure you have regular feeds of how your business is performing.</span></li> <li><span data-preserver-spaces="true">You also need to know about any substantial invoices that are in dispute, particularly overdue debts and clients exceeding their credit limits.</span></li> </ul> <p><span data-preserver-spaces="true">Building productive relationships with your key suppliers is important, so they are prepared to extend extra credit to you when you need it. </span></p> <p><span data-preserver-spaces="true">If you have a <a href= "../../../quickbooks-for-contractors-set-up-properly" target= "_blank" rel="noopener">properly set up accounting software</a>, then it should be relatively easy to view your red flags weekly, monthly (or any period you set).</span></p> <div> <p><span style="color: #0600ff;"><strong>Identify the causes and take action </strong></span></p> <p><