Construction Projections: Seeing Cash and Margin Trouble Before It Costs You

Your WIP shows today. Your backlog shows what's booked. Neither tells you where your cash and crews are headed. That's what projections do, and most contractors either do them badly or skip them.

In Part 8 of the series, CPA Kathe Barrington shows construction owners how to build projections that actually predict trouble early.

What you'll take away:

• Why projections belong to your CFO, and where owners still need to stay involved

• How far out to project (18 months internally, fiscal year-end for the bank)

• The job-cost bell curve, and how to plan cash, billings, and manpower around the peak

• Why cushion in your estimates can hurt your credibility with bank and bonding

• A 30-60-90 day plan to get your projections under control

Kathe's line for owners who play games with their numbers: you lose the truth about your own margins, and every future estimate inherits the lie.

The full Construction Accounting Series with Kathe Barrington:

• Ep. 357 WIP Reports Made Simple: https://www.constructiongenius.com/wip-reports-made-simple-the-key-to-stopping-hidden-job-losses-ep.-357

• Ep. 359 Use Your WIP to Protect Cash: https://www.constructiongenius.com/how-to-use-your-wip-to-protect-cash-and-grow-profitability-ep.-359

• Ep. 364 Physical Progress vs. Financial Reporting: https://www.constructiongenius.com/physical-progress-vs.-financial-reporting-in-construction-projects-ep.-364

• Ep. 368 Underbillings Bad. Overbillings Better: https://www.constructiongenius.com/underbillings-bad-overbillings-better-the-cash-flow-truth-construction-owners-cant-ignore-ep.-368

• Ep. 377 Why Your Jobs Look More Profitable: https://www.constructiongenius.com/why-your-jobs-look-more-profitable-than-they-are-indirect-allocations-and-overhead-in-construction-ep.-377

• Ep. 388 Read Your Backlog Like a Banker: https://www.constructiongenius.com/how-to-read-your-backlog-like-a-banker

• Ep. 396 Grow Bonding Capacity: https://constructiongenius.com/grow-bonding-capacity-banking-tax-moves-contractors/

• Full playlist: https://www.youtube.com/playlist?list=PLNqgaQ0mEF1w

Connect with Kathe Barrington: kbcpa.biz