A QuickBooks survey found 61% of small businesses struggle with cash flow. For contractors, the challenge is amplified: you buy materials today, complete work next week, and wait 30+ days for payment - while payroll is due Friday.

Invoice Immediately

Invoicing at job completion instead of end-of-week improves cash flow by 11+ days according to Jobber data. Send the invoice before your tech drives to the next job.

Accept Online Payments

Online payments reduce average collection time from 30+ days to under 7 days. Include a "Pay Now" button on every invoice. Accept credit cards and ACH.

Yes, processing fees cost 2.6-3.5%. But getting paid in 3 days instead of 30 days is worth it.

Require Deposits on Large Jobs

For installations and projects over $1,000, collect 30-50% upfront as a deposit. This covers your material costs before the work begins.

Maintenance Agreements

Maintenance agreements smooth seasonal revenue fluctuations by 30-40%. Monthly recurring revenue from 200 agreements at $25/month is $5,000/month that comes in regardless of weather or market conditions.

The 90-Day Cash Reserve

Build a cash reserve that covers 90 days of operating expenses:

  • Payroll for all employees
  • Vehicle costs (fuel, insurance, payments)
  • Office rent and utilities
  • Insurance premiums
  • Tool and equipment costs

A 90-day reserve gives you a buffer for slow seasons, unexpected equipment failures, and economic downturns.

Improve your cash flow

Get Started

Cash Flow Forecasting

Use QuickBooks Cash Flow Planner or similar tools to project cash flow 30-90 days out. This gives you early warning of cash crunches so you can take action before they hit.

Weekly Cash Flow Review

Every Monday, review:

  • Cash on hand
  • Outstanding invoices (and aging)
  • Upcoming expenses (payroll, materials, insurance)
  • Expected revenue (booked jobs for the week)

This 15-minute weekly review prevents surprises and gives you time to collect outstanding invoices before cash gets tight.

Worked Example: Cash Flow Improvement

Current: $50,000/month revenue. Average collection: 28 days. Always outstanding: ~$46,667. Cash crunches 3-4 months/year. After fixes: Invoice on-site (collection drops to 7 days = $11,667 outstanding). Online payments (3-day average for 60% of invoices). Maintenance agreements (200 × $25 = $5,000/month guaranteed). Deposits on large jobs (30% of $15,000 in monthly installs = $4,500 upfront). Net improvement: $35,000 freed in cash flow, seasonal revenue smoothed by 30-40%, zero missed payrolls. Processing fees: ~$1,450/month (2.9% on $50K). Worth every penny.

What Not to Do

  • Don't invoice at end of week. Every day between job completion and invoice delivery adds a day to your collection timeline. Invoice before leaving the job site - no exceptions.
  • Don't carry net-30 customers without a deposit. On a $5,000 install, a 50% deposit covers materials and labor. Waiting 30 days for $5,000 while paying employees weekly creates cash gaps.
  • Don't skip the 90-day cash reserve. One slow month, one large equipment failure, or one bad client can cripple a business without reserves. Build to 90 days of operating expenses and don't touch it except for emergencies.
  • Don't confuse revenue with cash. $100K in revenue means nothing if $40K is in outstanding invoices. Cash in the bank is what pays bills.

Related Reading