The GC Whose P&L Was a Liar

Brandon's profit and loss statement said he was rich. His checking account said otherwise.

Client: Brandon
Industry: Residential General Contracting
Annual Revenue: $2.4 million
Service: Fractional Controller + Cash Flow Forecasting + Buildertrend Integration

The Problem

Brandon ran a solid residential GC operation. Four to five custom projects at a time, good subs, happy clients. His P&L showed healthy margins—22% gross profit on paper.

So why was he constantly scrambling to make payroll?

The answer was timing—and the fact that Brandon had no idea when his money would actually show up.

His accounts receivable averaged 61 days. He had retainage scattered across eight jobs with no tracking system. Draws were requested "whenever he remembered." And his cash flow forecast was a sophisticated system he called "checking his bank app and hoping."

Brandon was profitable. He just couldn't access his profit until months after he'd earned it. Meanwhile, payroll hit every Friday whether he was ready or not.

He was paying 11% on a $150,000 line of credit to bridge the gap—$16,500 a year in interest, just to access money that was already his.

What We Fixed

Built a 13-Week Cash Flow Forecast

We created a rolling forecast tied to his active Buildertrend projects. Every expected draw, every retainage release, every payroll obligation—mapped out 13 weeks into the future. Brandon stopped being surprised by his own bank account.

Connected Buildertrend to QuickBooks (Properly)

His project management and accounting systems now actually communicate. When a draw is approved in Buildertrend, it flows into QuickBooks. When an invoice goes out, both systems know about it. No more "I thought you sent that" conversations.

Tightened AR from 61 Days to 38 Days

We implemented a structured follow-up workflow: invoice on completion, friendly reminder at day 7, polite-but-firm call at day 14. Simple. Consistent. Effective.

Created a Retainage Tracking System

Every job now has retainage logged by amount, expected release date, and client payment history. We found $31,400 sitting in retainage that Brandon had simply forgotten to follow up on. Three of those amounts were past their release dates.

The Financial Impact

The 23-day AR improvement changed everything. On $2.4M in revenue, that freed up roughly $150,000 in working capital that was always his—it just wasn't reaching him fast enough.

Brandon paid off his credit line entirely. That's $16,500/year in interest he'll never pay again.

The recovered retainage—$31,400—was pure found money. It had been sitting there for months.

With clear cash visibility, Brandon also made a hire he'd been avoiding: a full-time project manager at $65K. The forecast showed he could afford it. Within six months, that hire let him take on two additional projects worth $380,000 combined that he would have passed on before.

The ROI

First-Year Financial Results:

• Recovered forgotten retainage: $31,400

• Credit line interest eliminated: $16,500

• Reduced LOC usage (opportunity cost): ~$12,000

Total measurable impact: ~$59,900

Investment: $3,500/month × 12 months = $42,000

Result: 1.4× ROI in year one.

Note: The real value is ongoing—Brandon now operates debt-free with clear visibility. Year two and beyond, the interest savings alone cover a third of our fee.

The Takeaway

Brandon wasn't bad at building houses. He was bad at knowing when he'd get paid for building them.

A cash flow forecast doesn't make you more profitable on paper. It makes you more profitable in real life—because you stop paying banks to loan you your own money.

Brandon's P&L still says he's doing well. Now his checking account agrees.

Tired of Being Profitable on Paper But Broke in Reality?

If you're a residential contractor running multiple projects and constantly juggling cash, we can help you see what's coming before it hits.

Schedule a free 30-minute Profit Leak Assessment →

No pitch. No pressure. Just clarity.

Salisbury Bookkeeping provides fractional controller services for construction companies doing $1M-$10M in revenue. We connect your project management software to your accounting system so you can finally see where your money is—and when it's coming.