Construction Finances: Cash vs Accrual and How to Know If Your Jobs Are Profitable

When was the last time you finished a job and actually knew if you made money?Many construction owners rely on cash in the bank or billing activity to judge performance. The problem? Cash flow does not equal profit. In this episode, Mason Brady sits down with Rachel Glock, construction finance expert and fractional CFO of Brady CFO, to explain why cash basis accounting often hides real job profitability and how accrual accounting and WIP (Work In Progress) reports give owners the financial visibility they actually need.Topics We Cover0:00 – Why Construction Owners Struggle to Know Job Profitability2:27 – Cash vs Accrual Accounting Explained for Construction4:15 – What a WIP Report Is and Why It Matters7:29 – Why Bankers and Sureties Require Accrual Financials9:28 – When Cash Basis Accounting Still Makes Sense13:45 – Key Triggers for Switching to Accrual Accounting17:51 – What’s Involved in Moving from Cash to Accrual20:00 – Accrual Reporting vs Cash-Basis Taxes24:34 – When to Bring in a Fractional CFO or Financial Advisor🤝 Connect with Rachel: https://www.linkedin.com/in/rachel-glock-23090a74/ 🎙️ Connect with Mason: https://www.linkedin.com/in/masonbrady/ If you’re a construction owner and want better clarity around your numbers and how to scale your business, make sure you’re following the podcast.And if you’ve got questions, ideas for future episodes, or topics you want us to dive into, reach out to us at [email protected]