Managing Cash Flow in Construction

Managing cash flow is difficult for any company, but construction cash flow problems are some of the worst. This was made even more difficult with the introduction of the domestic reverse charge in April 2021.

We have helped many of our clients within the construction industry to effectively manage their cash flow by identifying opportunities and planning to manage their cash flow better.  Better cash flow management will allow companies to continue to take on new opportunities and grow in a buoyant industry.

How can we manage our cash flow more efficiently?

First of all consider, identifying  the top three factors:-


Making sure payment certificates and invoices are raised quickly, and chasing customers who aren’t keeping to their credit terms as soon as the due date has passed.  It is difficult for the person who carries out the work to chase the debts, so we can make the difficult calls for you.

Delays in supplies

Following Brexit and the pandemic, there are severe shortages of essential building materials.  Many suppliers are now charging 40% more for the same materials, and some want to be paid up-front.  This is having a drastic effect on cash flow, and jobs priced last year need to be re-tendered.

Multiple projects

Cash flow management is not always easy when taking on multiple projects in construction.  Most companies manage several projects at the same time, each with a different budget, schedule, and work scope.  You need to know if you are making money on each job.

Cash flow is your business’s wallet In construction, the term 'cash flow'  refers to an analysis of when costs will be incurred and how much they will amount to during the life of a project.

How Lipson & Co can help

Every construction company needs the right accounting reports and financial statements to identify where their cash flow is healthy, and where it needs support. After all, you can’t manage what you don’t measure. Please contact us today

Contact Us

Lipson & Co
88 North Street
RM11 1SR
01708 300410

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