𝐖𝐡𝐚𝐭 𝐅𝐨𝐫𝐞𝐧𝐬𝐢𝐜 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐚𝐧𝐭𝐬 𝐒𝐩𝐨𝐭 𝐁𝐞𝐟𝐨𝐫𝐞 𝐚 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐈𝐦𝐩𝐥𝐨𝐝𝐞𝐬
In construction, profit isn’t just built on site—it’s built in the books.
𝐀𝐬 𝐚 𝐟𝐨𝐫𝐞𝐧𝐬𝐢𝐜 𝐜𝐨𝐧𝐬𝐭𝐫𝐮𝐜𝐭𝐢𝐨𝐧 𝐚𝐜𝐜𝐨𝐮𝐧𝐭𝐚𝐧𝐭, 𝐈’𝐦 𝐨𝐟𝐭𝐞𝐧 𝐜𝐚𝐥𝐥𝐞𝐝 𝐢𝐧 𝐚𝐟𝐭𝐞𝐫 𝐭𝐡𝐞 𝐝𝐚𝐦𝐚𝐠𝐞 𝐢𝐬 𝐝𝐨𝐧𝐞. 𝐁𝐮𝐭 𝐭𝐡𝐞 𝐭𝐫𝐮𝐭𝐡 𝐢𝐬, 𝐭𝐡𝐞 𝐫𝐞𝐝 𝐟𝐥𝐚𝐠𝐬 𝐰𝐞𝐫𝐞 𝐭𝐡𝐞𝐫𝐞 𝐥𝐨𝐧𝐠 𝐛𝐞𝐟𝐨𝐫𝐞 𝐚𝐧𝐲𝐨𝐧𝐞 𝐧𝐨𝐭𝐢𝐜𝐞𝐝.
1. 𝐔𝐧𝐮𝐬𝐮𝐚𝐥𝐥𝐲 𝐇𝐢𝐠𝐡 𝐏𝐫𝐨𝐟𝐢𝐭𝐬 𝐰𝐢𝐭𝐡 𝐋𝐨𝐰 𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰 - 🛑 Red Flag: "We’re profitable—but broke."
2. 𝐈𝐧𝐜𝐨𝐧𝐬𝐢𝐬𝐭𝐞𝐧𝐭 𝐉𝐨𝐛 𝐂𝐨𝐬𝐭𝐢𝐧𝐠 -🛑 Red Flag: “We don’t break it out by job—it all averages out.”
3. 𝐂𝐡𝐚𝐧𝐠𝐞 𝐎𝐫𝐝𝐞𝐫𝐬 𝐍𝐨𝐭 𝐑𝐞𝐟𝐥𝐞𝐜𝐭𝐞𝐝 𝐢𝐧 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥𝐬 - 🛑 Red Flag: “We’re billing, but it’s not in QuickBooks yet.”
4. 𝐎𝐰𝐧𝐞𝐫 𝐃𝐫𝐚𝐰𝐬 𝐖𝐢𝐭𝐡𝐨𝐮𝐭 𝐃𝐨𝐜𝐮𝐦𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧 - 🛑 Red Flag: “It’s my company—I’ll pay myself however I want.”
5. 𝐒𝐭𝐚𝐥𝐞 𝐀/𝐑 𝐚𝐧𝐝 “𝐆𝐡𝐨𝐬𝐭 𝐑𝐞𝐭𝐚𝐢𝐧𝐚𝐠𝐞” - 🛑 Red Flag: “That retainage should’ve been released six months ago.”
𝐓𝐡𝐞 𝐁𝐨𝐭𝐭𝐨𝐦 𝐋𝐢𝐧𝐞 - Financial red flags are easy to ignore—until they turn into lawsuits, audits, or insolvency. If your gut says something’s off, it probably is.
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