Most construction cash problems are timing problems. A simple weekly routine for payables, billing and collections fixes most of them, and it works best when one person owns it.
Cash problems in construction are usually timing problems. Invoices get coded late, pay applications miss the cutoff, collection calls happen when someone remembers, and retainage sits unbilled long after the work is done. A simple weekly routine fixes most of it: code and match payables as they arrive, prepare payment runs on a fixed day, send billing on the schedule each contract sets, and work the receivables list every week.
None of this is complicated. It just has to happen every week, including the busy ones, which is why it works best when one person owns it.
Every company's billing calendar is different, but most contractors can work from a pattern like this one:
| Day | Accounts payable | Accounts receivable |
|---|---|---|
| Monday | Enter and code last week's supplier and subcontractor invoices | Review the aging report and plan the week's follow-up |
| Tuesday | Match invoices to purchase orders and delivery tickets, and flag what does not match | Send invoices for work completed last week |
| Wednesday | Collect missing lien waivers and insurance certificates | Follow up on overdue invoices |
| Thursday | Prepare the payment run for approval | Prepare upcoming pay applications and their backup |
| Friday | Release approved payments and file the records | Log payments received and update the cash forecast |
The exact days matter less than doing the same thing at the same time each week, so vendors, subcontractors and customers learn when to expect you.
The step most often skipped is matching. Paying an invoice that does not match the order is how duplicate charges and wrong prices get through.
On commercial and multifamily work, the pay application decides when you get paid, and a late one can push payment back by a whole cycle. Keep it on a calendar:
Collections work best when they are routine rather than personal. Review the aging report weekly, follow up on anything past its due date by email and phone on a set schedule, and keep notes on every promise of payment. Decide in advance which accounts the owner or project manager handles personally, and what happens when a customer disputes an invoice. A specialist can run the routine; disputes and relationships stay with you.
Retainage is the part of each payment the customer holds back until a later stage of the job, as your contract describes. Because it is paid long after the work, it is easy to forget. Track it by job and by customer, note when each amount becomes billable under the contract, and put the billing and follow-up on the calendar so it is not discovered months later.
| Role | Best fit when |
|---|---|
| AP/AR specialist | Someone already owns the books, but invoices, billing and collections keep falling behind |
| Construction bookkeeper | Nobody owns the books, reconciliations or month-end reports yet |
| Accounting assistant | A controller or accountant needs processing support across payables, receivables and documents |
| Purchasing coordinator | Invoices do not match because purchase orders are missing or out of date |
For a fuller picture of the bookkeeping side, read what a construction bookkeeper actually manages.
Yes. Invoice entry, matching, payment runs, billing, pay applications and collections all happen in your accounting software, email and customer portals. Approvals, check signing and releasing funds stay with the people you authorize, and system permissions can be set so the specialist prepares payments without releasing them.
Subcontractors billing several general contractors, service companies with high invoice volume and builders processing many subcontractor invoices usually feel the benefit first. See how we support specialty trade contractors and service contractors.
Weekly or every two weeks works for most contractors. A fixed schedule makes cash easier to plan and gives suppliers and subcontractors a predictable answer about when they will be paid.
Retainage is a portion of each payment that the customer holds back until a later stage of the project, as the contract sets out. It is paid later than the work it relates to, so it needs its own tracking.
It is a list of unpaid invoices grouped by how long they have been outstanding, such as current, 30, 60 and 90 days. Reviewing it weekly is the simplest way to keep collections on schedule.
Routine follow-up can come from your AP/AR specialist in your company's name, using the tone and escalation rules you set. Key accounts, disputes and payment arrangements stay with the owner or project manager.
If nobody owns the books, start with a bookkeeper. If the books are owned but the transaction volume keeps them behind, an AP/AR specialist takes that volume so your bookkeeper or controller can focus on reporting.
Within a maximum of approximately two weeks we can normally present two to three pre-screened candidates who meet the requirements of the position and are ready to be interviewed. The final hiring time depends mainly on how quickly your own evaluation and decision process moves.
One consultation is enough to define the role, agree the requirements and start the search. Most companies have a shortlist to interview inside two weeks.
