The Electrician Playing Hide and Seek with His Own Money

Marcus was profitable. He just couldn't find the profit.

Client: Marcus
Industry: Commercial Electrical Subcontracting
Annual Revenue: $3.6 million
Service: Fractional Controller + WIP Reporting + Procore Integration

The Problem

Marcus ran a commercial electrical company with a solid reputation. Medical offices, retail buildouts, warehouse expansions—he had 14 electricians and the expertise to handle complex projects.

What he didn't have was cash.

Not because he wasn't profitable. Because his cash was playing an extended game of hide and seek across four GCs, nine active projects, and a spreadsheet that hadn't been updated since the Obama administration.

Here's how commercial subcontracting works: You do the work. You bill monthly on AIA forms. The GC holds 10% retainage. They pay you in 45-60 days—if you're lucky. Meanwhile, payroll hits weekly, suppliers want payment in 30, and your working capital slowly evaporates.

Marcus knew retainage was "out there somewhere." When we asked him how much, he guessed $80,000.

The actual number was $147,000.

That's not a cash flow inconvenience. That's a house—sitting in other people's bank accounts, earning them interest instead of Marcus.

What We Fixed

Built a Retainage Tracking System That Actually Tracks

Every project now has retainage logged in QuickBooks with the amount held, expected release date, GC contact info, and payment history. Marcus can see exactly what's owed, when it should arrive, and which GCs need a reminder call (or a lien notice).

Implemented Real WIP Reporting

We created monthly Work-in-Progress reports showing earned revenue vs. billed amounts by project. Marcus discovered he'd been underbilling on three projects by a combined $38,600—work completed, never invoiced.

Connected Procore to QuickBooks

Marcus's project data and financial data now live in the same universe. Labor hours, material costs, and change orders flow from Procore into proper job costing. No more end-of-project surprises.

Added Labor Burden to Job Costing

Marcus was tracking labor hours but using his base wage rate for job costing. He wasn't accounting for payroll taxes, workers' comp, or benefits. His "$42/hour" electricians actually cost $57/hour fully loaded. His margins were 16% thinner than his spreadsheet claimed.

The Financial Impact

Armed with actual retainage data, Marcus started negotiating differently. New contracts now specify 5% retainage instead of accepting 10% as gospel. He requests early release at substantial completion.

Within eight months, his average retainage hold dropped from $147,000 to $89,000—freeing up $58,000 in working capital.

The WIP discovery—$38,600 in underbilling—was collected within 75 days.

And once Marcus saw his true labor costs, he raised his billing rate by $6/hour on new bids. He didn't lose work—he'd been the cheapest electrical sub in three counties and didn't know it.

That rate correction adds approximately $52,000 annually based on his labor volume.

The ROI

First-Year Financial Results:

• Labor rate correction (annualized): $52,000

• Recovered underbilling: $38,600

• Working capital freed from retainage: $58,000

Total measurable impact: ~$148,600

Investment: $4,200/month × 12 months = $50,400

Result: 2.9× ROI in year one.

The Takeaway

Marcus was making money. He just didn't know where it was.

For subcontractors, profitability isn't the hard part—getting paid is. Retainage tracking, WIP reporting, and accurate labor costing turned Marcus's financial fog into a dashboard he actually understands.

He still works with the same GCs. He's still profitable on paper. The difference? Now he's profitable in his bank account too.

How Much of Your Money Is Sitting in Someone Else's Bank Account?

If you're a commercial subcontractor juggling multiple GCs and wondering why cash is always tight despite profitable jobs, we can help you find your money—and keep it from hiding again.

Schedule a free 30-minute Profit Leak Assessment →

Salisbury Bookkeeping provides controller-level financial oversight for commercial contractors doing $1M-$10M in revenue. We integrate with Procore, Buildertrend, and other PM platforms to give you real-time visibility into retainage, WIP, and true job profitability.