The contractors who stay in control aren’t the ones with the fanciest software, they’re the ones with a repeatable monthly rhythm. Here’s what that rhythm looks like once it’s working.
Key takeaways
- A monthly close finished within the first week means you are deciding on current data instead of guessing from a bank balance.
- The monthly review is a 30-minute look at three or four numbers: which contracts made money, where costs drifted, and whether your indirect rate is holding.
- The billing check catches the most common reason a profitable contractor runs short on cash: work performed but never invoiced.
- The rhythm compounds: each month is easier and clearer than the one before it.
The Monthly Close
Every month starts with a clean close: reconcile bank and credit card accounts, record all costs to the right contracts, and lock the prior month so the numbers stop moving. A close that finishes within the first week means you’re making decisions on current data, not guessing from a checkbook balance.
The Monthly Review
With the books closed, you review what actually happened. Which contracts made money? Where did costs drift from the plan? Is your indirect rate holding? This is a 30-minute look at three or four numbers, not a forensic audit, but it’s the difference between steering the business and reacting to it.
The Billing Check
Cash flow lives and dies on billing. Each month, confirm every billable cost was invoiced, every invoice was submitted through the right system, and nothing is stuck in approval. Missed or delayed invoices are the single most common reason a profitable contractor runs short on cash.
What This Rhythm Builds Over Time
Do this for a few months and something shifts. You stop being surprised. You catch problems while they’re small. You walk into bids knowing your true costs, and you take money out of the business with confidence. The rhythm compounds: each month is easier and clearer than the last.
Want a rhythm that runs itself?
Start with the free cash flow training, then book a GovCon financial readiness call.
