Can You Trust Your Financial Statements? What to Watch For!

Send us Fan Mail **🔗 LINKS** Visit the episode page for more details and a transcript of the show. Sign up for group coaching to get your Cash Flow MRI Get Profit First for Commercial Construction--OUT NOW! Subscribe to get notified as soon as new episodes go live. **ℹ ABOUT THIS EPISODE** Do your financial statements tell the real story of your business?  In this episode, Wade Carpenter and Stephen Brown break down the red flags that construction CPAs and bond underwriters spot immediately — from under-billings and WIP errors to inflated receivables and round-number gross profits.  Learn how one contractor went from a $3M loss to a $2M profit just by correcting their billing — and what you should be watching in your own financials before presenting them to a banker or bonding company. **⌚️ Key moments in this episode:** - 00:00 Why Numbers Feel Wrong - 00:42 Construction Lens on Financials - 01:53 Case Study Massive Billing Swing - 03:29 WIP Billings and Collectibility - 05:59 Underwriter Red Flags Checklist - 08:00 Cost to Complete and Margin Fade - 11:02 Surety Trust and Communication - 11:57 Growth Cash and Working Capital - 12:55 Receivables Payables and Debt - 17:32 Backlog WIP Oddities and Round Numbers - 19:52 Change Orders Concentration Risk - 23:38 Wrap Up Know Your Numbers The Contractor Profit Blueprint is a complete guide that breaks down exactly how to identify where your money's going and start keeping more of it. This isn't theory. It's the same framework I use with contractors I work with every single day. Head to profitfirstconstruction.com/blueprint to download your free copy.  Stop working for free. Let's get you keeping what you've earned. Join the Profit First for Construction community! Find all episodes and related links at ContractorSuccessForum.com. Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs     **FIND US ONLINE** Wade Carpenter, CPA, CGMA | CarpenterCPAs.com Stephen Brown, Bonding Expert | SuretyAnswers.com