Once you run the report, you can customize the report to filter only specific jobs. If you have set up your QuickBooks account for job costing, viewing by customers will also show you a breakdown by each job. Displaying columns by customer will show you how each customer is affecting your cash balance. April – June.īut a cash flow report can even show you how each contractor or customer you work with helps your bottom line - or holds you back. If you are viewing annual cash flow, you might select “Quarters” to compare cash flow in January – March vs. If you are viewing cash flow over the last week, you might want to display columns by day. QuickBooks allows contractors to compare cash flow in different ways. Enter a custom time for the report or choose from pre-configured settings in the dropdown menu. You can view a cash flow report over a single day, week, month, year, or over multiple years. Statement of Cash Flows Shown by Customer Set the reporting time period Since the cash flow statement doesn’t reflect depreciation, it will give you a more tangible picture of how revenues are positioned should you need to purchase, borrow, or invest, for example. If you’re on a commercial office building job anticipating cost overruns in labor, for instance, you may have time to tweak man-hours or discuss price adjustments with the customer.Ī notable difference between the cash flow statement and an income statement is that the income statement will reflect non-cash entries such as depreciation. To gain deeper insight into annual profitability, contractors should run this statement at least monthly.
It might be a fiscal quarter or a full year. In this report, current assets such as equipment and accounts receivable (AR) will always equal current liabilities like bank loans and accounts payable (AP), as examples.Īn income statement will show you an influx of revenue and an outflow of payments over a chosen period. These analyses will give you a deeper insight into the genesis of cash flow and how all three reports tie together.Ī balance sheet gives you a snapshot of what you own (assets) and what you owe (liabilities) at any particular point in time.
How much cash can you invest in growth?.Which jobs have the best (or worst) cash flow?.Is your cash flow positive or negative?.Questions a Cash Flow Report Can Help Contractors Answer.Create Parameters for the Cash Flow Statement Generate an Initial Statement of Cash Flow
They often have powerful analysis tools built in that can help contractors track their financial performance. But most platforms can do a lot more than just bookkeeping.
Most contractors use some type of construction accounting software to track income and expenses. It’s fast, easy, affordable, and done right.