Electrical subcontractor: payables from $150,000 to $20,000, and $250,000 in the bank
Client: Electrical Corporation
A $3M to $4M electrical subcontractor that was behind on its bills and slow to collect.
- $150,000
- in accounts payable when we started
- $20,000
- in accounts payable now, with every vendor caught up
- $250,000
- in the bank, and growing
01
Where it started
The work was coming in. The paperwork was piling up.
This $3M to $4M electrical subcontractor was behind on paying its vendors and slow to collect what it was owed. The team was drowning in paperwork.
02
What we did
We set up repeatable processes that standardized how the company pays its bills. We collect statements from its vendors, analyze them, talk with the vendors, and record and pay each bill before it comes due.
On the other side, we send the company's invoices out on time. We meet with the owner every week, and every two weeks we send the owners a report.
03
Where it stands now
Every vendor is caught up. Accounts payable is down from $150,000 to $20,000, a small balance for a subcontractor doing $3M to $4M a year.
The company has $250,000 in the bank, and its cash is still growing.
Related: fractional controller and construction.