[8/27/25] The Fight Way w/ Neil: Cash Is King, But It Can Deceive
The main focus of this week's The Fight Way call was on explaining the differences between cash and accrual accounting methods, particularly for construction and service-based businesses, including detailed explanations of work-in-progress reporting and financial tracking.
CLICK HERE TO WATCH THE AMA VIDEO THAT WAS MENTIONED IN THIS WEBINAR.
Webinar Summary: The meeting covered several organizational updates including leadership changes, upcoming events, and new business initiatives. The conversation ended with practical discussions about construction loan management, cash flow monitoring, and handling unexpected financial situations, with participants sharing experiences and best practices for managing business finances.
Next steps:
- Battleground members: Register for Raise the Bar event on September 16th in Aurora using coupon code RTV100BG.
- Members interested in War Room: Fill out the interest form at thecontractorfight.com/war-room for the new group starting in October.
- Members looking to join a BG pod: Email help@thecontractorfight.com to get placed by Desi.
- All attendees: Review accounting methods and consider switching to accrual/percentage of completion accounting if handling projects spanning multiple time periods.
- All attendees: Implement work-in-progress adjustments at the end of each month to accurately reflect earned revenue.
- Business owners: Review both P&L and balance sheets monthly for complete financial picture.
- All attendees: Start examining balance sheets regularly, not just P&Ls, to understand true financial position.
- All attendees: Track over-billing and under-billing on balance sheets.
- All attendees: Monitor equity position to ensure building business value rather than depleting it.
- Members: Continue using the 50K tracker for savings.
- Remodelers: Consider switching to accrual/percentage of completion accounting for longer project timeframes.
- All attendees: Review the archived AMA webinar on percentage of completion accounting for more detailed information.