Understanding Your Financials Without the Headache-Financials don’t have to be scary
If you’re like most contractors, the idea of sitting down with your financial statements sounds about as fun as getting a root canal. Profit & Loss? Balance Sheet? Statement of Cash Flows? You didn’t get into business to crunch numbers — you got in to build things, manage crews, and get stuff done.
But here’s the truth: you don’t need to be a CPA to understand your numbers — you just need a translator.
Your financial statements are telling you a story. They show you what’s working, what’s bleeding, and what’s growing. But most contractors never get to hear that story because no one has ever explained it in plain English.
Let me break it down simply:
- Your Profit & Loss Statement tells you if your jobs are making money.
- Your Balance Sheet shows you if you’re building wealth or just spinning your wheels.
- Your Cash Flow Statement reveals if your timing is off (and how to fix it).
Once you know what to look for, your numbers become a tool — not a burden.
I worked with a concrete subcontractor who had zero confidence in his financials. Every month, he’d get emailed his P&L and promptly delete it. When we finally walked through it together, we discovered he was spending thousands more on materials than he realized due to vendor creep and inaccurate estimates. We also found that his “busy season” was actually breaking even — not profitable at all. He started reviewing his numbers monthly with me, and within 3 months, made changes that added $60K to his bottom line for the year.
He didn’t get a finance degree. He just started asking better questions.
Ready to hear the story your numbers are trying to tell?
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