Every contractor I’ve met has done this: they check the bank balance and breathe a sigh of relief — or start to panic. But here’s the hard truth:

Your bank account is lying to you.

That number doesn’t account for outstanding bills, unbilled time, unpaid invoices, or sales tax that’s already owed. It doesn’t tell you if you’re profitable. It only tells you what’s sitting in the account right now.

It’s like judging your fitness by the number on the scale. There’s context, timing, and deeper metrics that matter.

Real World Mistake & Lesson:

A remodeling company thought they had $60,000 “extra” in the bank. They booked a new truck, upgraded tools, and added a foreman. Two weeks later, $45,000 in vendor bills came due. They didn’t realize that most of that cash had already been spent — just not yet paid. A simple cash flow forecast would’ve saved them a world of hurt.

 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