A slow month-end close means leaders make decisions with stale information. Construction companies that close in days, not weeks, operate with a real-time view of the business.
Why Close Takes Too Long
- No defined cutoffs for billing and costs
- Waiting on subcontractor invoices or field reports
- Manual reconciliations and spreadsheet work
- Unclear ownership of close tasks
- Job cost and GL out of sync
How to Improve
- Set a target close date and work backward
- Use a close checklist with owners for each task
- Enforce cutoffs so late entries do not reset the cycle
- Reconcile regularly rather than only at month-end
- Automate bank feeds, allocations, and recurring entries
The Result
A disciplined close produces accurate financials quickly, builds trust with your bank and surety, and lets leadership act on current — not historical — information.
This content is provided for general educational purposes and is not a substitute for legal, tax, insurance, or individualized financial advice.
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