Financial Management
What Financial Reports Should Contractors Review Every Month?
Monthly financial reporting keeps construction leaders ahead of problems. The P&L and balance sheet are necessary, but contractors need a fuller set of reports to run the business.
Core Monthly Reports
- Income statement by company and, where useful, by branch or division
- Balance sheet including over/underbillings and retainage receivable
- WIP schedule showing percent complete, earned vs. billed, and backlog
- Job cost report comparing estimated to actual costs by project
- Accounts receivable aging with collection status
- Cash flow forecast covering the coming weeks
- Backlog report showing remaining contracted work
Using the Reports
Reviewing these together each month connects profitability, cash, and project health. Look for trends — margin slippage, aging receivables, growing underbillings — and act early. Consistent monthly review is a hallmark of well-run construction companies.
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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