Every contractor I know has done this at some point. You open up your banking app. You see a decent balance — maybe $30K or $50K. You breathe a little easier. “Okay,” you think, “we’re good.” You make decisions — hire a new guy, buy that trailer, pay off a vendor — based on what you see.

But there’s just one problem: your bank balance is lying to you.

That number doesn’t show you what’s coming due in the next week or two. It doesn’t tell you that payroll is due Friday, or that you’ve got $18,000 in supplier payments scheduled for the 15th. It doesn’t show you that $22,000 invoice you’re counting on is already 14 days past due.

Your bank account is a snapshot, not a forecast.

Running your business off your bank balance is the fastest way to fall behind on cash.

And it’s not about being bad with money — it’s about using the wrong tool to make decisions.

I helped an HVAC contractor who ran his $1.5M business by checking his balance once a day. If the number looked good, he made decisions. If it looked low, he cut back. He felt like he was managing risk, but in reality, he was playing roulette. One fall, jobs slowed, but bills kept coming. Payroll hit the same week as a big quarterly tax payment. He was caught completely off guard and had to borrow just to cover payroll. After we installed a weekly cash forecast and walked through his obligations in advance, he started making proactive moves — and eliminated the panic.

Want to get off the bank balance rollercoaster?

Pick up your free copy of my new book, “The 7 Minute Conversation-How to Hear the Story Your Small Business Financial Statements Are Telling You-CONTRACTOR EDITION”.  Go to www.7MinuteConversationBook.com

Ready to find out where your cash and profits are really going? Book your free 15-minute Profit and Cash Flow Call with me. No pressure. Just real clarity. I’ll help you see where your money’s hiding — and what to do about it. Schedule at www.CashFlowCallWithLarry.com