Contractor Payroll Blues!

Learn how to schedule your work to make your life easier!

Some of the things I have mastered during my construction career is how to schedule jobs to blend with payroll and other money disasters. Now it can be taught but no one cares about this more then the owner.

So with this being said let me give you some of the ways I set up my month to have all the money needed in time for payroll every week plus pay the bills all month long.

First off I deal with my suppliers when I set up my accounts. Pending on the size of your projects and the amount you purchase from one supplier I have all separate invoices for each project or job number. This way I can pay by invoice number all month long and not have a large invoice at the end of the month.

By the way I pay bills weekly not monthly. I believe in good old cash flow and pay the bills with it.

We have several different size projects going all the time. Jobs that are $15,000 or less are weekly projects $15,000 to $30,000 are 2 week jobs and then we jump to $50,000 plus are in the 3-4 week range and of course we have $100,000 plus are monthly jobs or more.

So I carry with me a book of projects and my accounts payable and receivables everywhere I go. I plan my work around the money I need for the week and by the month. This is set up with my team and I set the schedule week by week and we tweak as we go.

Sometimes If I have a big order for my supplier for one big project I will have them break it up into 2 invoices and if they refuse then I break up the order into 2 separate orders. Bottom line I get what I want so it helps in my cash flow and this works for me.

You need to stay on top of your game always to keep the flow of work and cash flow to work to your advantage. Nothing worse then chasing money to make payroll or to pay a supplier.

Give me your comments on how you deal with cash flow.

Happy Selling

Glen Kohlenberg

Tagged as: Business, Contractors, Marketing, Payroll