Tag Archives: Construction cash flow
Posted on February 14, 2017 by FMI CorporationAny principal of a construction firm will tell you that cash is king. There is little room for error when it comes to feeding the cash cycle. Why not apply the same focus and fervor to collecting the monies that are owed to your company as you do to installing the building components for which you bill? Often, too much of the responsibility for collecting receivables is shifted to the accounting department. When accounting investigates the nature of an account and the reason for delinquency, it is often determined that the client has withheld payment because it has yet to receive consideration for payment as outlined in the contract. Examples range from a significant deviation from the schedule of values to failing to deliver as-built drawings.
This post was posted in Consulting and was tagged with construction industry, Construction cash flow, Cash flow management, Relationship building, construction firm blog, collections construction, construction best practices
Posted on March 13, 2012 by FMI CorporationConstruction Cash Flow – Your Project’s Lifeline By John Chaney FMI is happy to welcome back John Chaney, co-founder of Dexter + Cheney, a Seattle-based company that specializes in construction management software, for his thoughts on construction cash flow. Whether you work in a construction accounting department or are a project manager, cash flow is important to your everyday work. The accounting staff needs enough cash in the bank to pay bills and project managers need enough to complete jobs. So why is cash flow so difficult to manage?