Show Me the Cash Flow

Posted on January 13, 2010

Are you in control of your cash? Being in control of your cash equals being in control your business. Yet as simple as that sounds, cash flow and collections can be a major hurdle for many contractors to overcome.

“Cash flow is the second leading killer of contracting businesses today, second only to improper labor pricing,” says Tom Grandy, president of a contracting business consulting firm. For most companies, he says, “cash flow problems center around collections.”

Grandy explains that half the battle of being in control of your cash is knowing what to expect in terms of monthly cash flow needs before they occur. It’s important, he notes, to have monthly projections broken down by department so you can see where the money is going and how much you’ll need.

As part of his learning lab at ACCA’s 42nd Annual Conference, “Cash Flow Budgeting and Collections,” Grandy will take contractors through the monthly projection process, mapping out the mechanics of how to come up with a cash flow game plan to keep contracting companies on solid ground during rocky economic times.

He will also address in the session the other piece of the cash flow puzzle—getting the money in-house. Collections can be a tricky subject, but Grandy assures contractors that it can be done professionally and effectively. He will share with attendees dozens of fresh ideas to properly collect the money a business is owed—while at the same time maintaining happy customers.

To see more about this workshop, and the many others scheduled for the upcoming event, click here. The ACCA Annual Conference and Indoor Air Expo has a powerful line-up of HVAC contractor-specific seminars, all happening March 7-9 in Tampa, Fla.