Roofer Show

The number one reason that companies go out of business is that they don’t charge enough money for their work. They eventually run out of cash and don’t realize they’re running out of money until it’s too late.
Cash flow is what you’re collecting and what you’re spending.
Cash is what you have in the bank.
Developing a system regarding how to run a business and how to run a cash flow.
Why is cash flow such a problem when contractors are swamped with work? Here are the Top 5 Reasons:

OTC / “Order to Cash” – from the moment your salesperson takes the order off the street to the moment you get the last penny applied to the account.

Everyone in your company should understand the process of how the billing and collections work, and what to expect when it doesn’t.

7 days grace period is reasonable. After that, call and find out what’s going on.
30 days past due is very hurtful to your cash flow.
You should train your customers how to treat you.

Checking out a customer before they do the work for them; collecting deposits upfront.
Checking for liens on general contractors.
Not utilizing mechanic’s liens and bonds rights.
Using a lien service can be very helpful so that you don’t have to follow legislation and worry about deadlines.
Leveraging joint checks; not following up on retainage.

Not getting your billing out the door the same day or the day after the job is done can hijack your cash flow.
If you don’t send invoices out in a timely manner, customers may see that payment is not a priority for you.
Emailing invoices and statements save you time and money, and you can check the read receipt so that you know that the customer got it.
Accepting credit cards in the field via smart-phone add-on can add another level of professionalism to your company.
Offering financing through a financing company will improve your sales.
Bonus Round: Not growing your back office system to support your sales growth can jam up your cash flow. Billing, tracking and collecting. Must interview and hire those who know the business side to these processes.
Stop treating your collections (and that includes billing) as an after-thought.