Let’s get something straight: your bank balance is not your budget.
It’s not your available cash. It’s not a green light to spend. It’s not even an accurate picture of how your business is doing.

It’s just a number. A snapshot in time. And it’s lying to you.

You check your account and see $40,000. Looks good, right? But what you’re not seeing is that you’ve got $18,000 in payroll next week, $12,000 in credit card payments, and $7,000 in vendor bills coming due. Oh, and that $25,000 check from a client? Still hasn’t shown up.

That “healthy” balance? It’s a mirage. You’re one missed invoice away from a cash crunch.

This is where contractors get into trouble. They spend money they think they have — but it was already committed. And when the bills hit, they’re borrowing, delaying payments, or skipping payroll. That creates stress, late fees, and reputational damage.

A GC I worked with had $150K in his operating account and assumed things were great. He made some big purchases, cleared old bills, and paid early bonuses. Two weeks later, three large liabilities hit — payroll, sales tax, and a vendor payment. His account went negative, and he had to pull from a personal credit line to cover the gap. Once we installed a rolling 13-week cash flow forecast, he stopped looking at his bank balance as a decision-making tool and started acting like a CFO.

Cash flow management isn’t hard — but it does require visibility.

Want to know what your next 6 weeks of cash flow actually look like?

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