Why is the account always tight when work is steady?
Cash and profit are two different things. You can earn a profit for the month and still be short on the fifteenth because the money is stuck somewhere between the job and your bank account. That gap is timing, and timing is what quietly chokes service businesses.
Where does the cash actually go?
In most service and trade businesses the cash is not gone, it is just tied up. Look for it in these places.
- Unpaid customer invoices sitting past due
- Materials and subcontractors you paid for before getting paid
- Loan and equipment payments that never show on your profit and loss as costs
- Owner draws and taxes that come straight out of cash
Does growth make the cash problem worse?
It can. Every new job you take usually means buying materials and paying labor up front. Grow fast enough and you can be more profitable and more broke at the same time, because you are funding bigger and bigger jobs before the checks arrive.
How do you start fixing it?
Start by watching cash on its own, separate from your profit and loss. Invoice faster, collect faster, and take deposits on bigger jobs. A simple weekly look at what is coming in and going out will catch problems weeks before they become a crisis.