Cash flow problems are one of the most common challenges for contractors in Myrtle Beach. Many construction companies appear profitable on paper but still struggle to maintain consistent cash flow.

Understanding the causes of these issues is the first step toward fixing them.

1. Poor Job Costing

Without accurate job costing, it’s difficult to know whether a project is actually profitable.

Many contractors track total revenue and expenses but don’t break costs down by job. This can lead to projects losing money without being noticed until it’s too late.

2. Underbilling or Delayed Billing

If work is completed but not billed promptly, cash flow suffers.

This often happens when:

• Progress billings are delayed

• Change orders are not invoiced

• Billing does not keep up with project progress

3. Change Orders Not Tracked Properly

Untracked or unbilled change orders are a major source of lost revenue.

If additional work is not documented and billed correctly, contractors end up absorbing costs that should have been paid.

4. No Work-in-Progress (WIP) Tracking

A WIP schedule helps contractors understand:

• Overbilling and underbilling

• Cost-to-complete

• True job profitability

Without accurate WIP reporting, financial statements can be misleading and cash flow problems can develop quickly.

👉 If you need help with WIP reporting, learn more about our Construction Accounting services.

5. Lack of Cash Flow Forecasting

Many contractors operate without a clear cash flow plan.

A simple forecast can help:

• Predict cash shortages

• Plan for upcoming expenses

• Avoid surprises

👉 Our Fractional CFO services help contractors build and maintain cash flow forecasts.

How to Fix Cash Flow Issues

Improving cash flow starts with:

• Accurate job costing

• Timely billing

• Proper WIP tracking

• Clear financial reporting

With the right systems in place, contractors can improve profitability and maintain better control over their finances.

Serving Myrtle Beach Contractors

Garison Financial Services works with contractors in Myrtle Beach, Murrells Inlet, and throughout the Grand Strand, providing construction accounting and CFO support.

If you’re experiencing cash flow issues or want better visibility into your financials, we can help.

👉 Schedule a free consultation to discuss your business.