All over the country, all different types and sizes, and this is what they look like 99% of the time. I look at the financial reports for different contractors every day (it’s fun for me, really). How can you LOSE over $14k in November and make a profit of $111k in October? These numbers are all over the place. It’s not just you, this report doesn’t make any sense and it’s probably not accurate. With multiple jobs going at once, this can result in complete chaos on your Profit and Loss report, with gross and net profits fluctuating wildly from month to month and even year to year: In this case, you are often under-billed. Sometimes, it’s the opposite: The contractor must incur costs and then invoice the customer and get paid. During the earlier months of the job, you are often over-billed, and near the end, you are under-billed. This is great until the job nears completion, when you’ve already collected the money, but still have to pay all of the costs to finish the job. Oftentimes, draw schedules are heavily front-loaded: You are drawing ahead for costs that you will soon incur. There’s a very good reason for this and it’s not your analytical skills: In the contracting business, it’s likely that at any given period of time, the costs you’ve incurred rarely line up with the revenue you’ve invoiced for. Have you ever gotten to the end of a big job and suddenly found yourself in a major cash flow crunch? Are you frustrated because when you look at your Profit and Loss report it makes NO SENSE?
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