In latest episode of Builders, Budgets, and Beers, we were joined by Tonya Schulte, founder of The Profit Constructors. With nearly three decades of experience in construction accounting, Tonya shared her expertise on creating synergy between the back office and the field to drive business success. The focus? Simplifying processes, improving cash flow, and helping contractors achieve certainty and alignment in their operations.

The Problem: A Disconnect Between the Field and Back Office

Many contractors struggle with a common issue: the back office feels isolated from field operations. Complex financial systems, unassigned responsibilities, and miscommunication often lead to inefficiencies that ripple through the business. This is especially apparent in three critical areas:

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• Accounts Receivable (AR): Delays in collecting payments disrupt cash flow.
• Accounts Payable (AP): Without clear planning, contractors risk falling behind on obligations to suppliers and subcontractors.
• Cash Flow Uncertainty: Many contractors lack a clear picture of incoming and outgoing funds, leading to sleepless nights over payroll and expenses.

The Solution: Building Repeatable, Scalable Systems

Tonya introduced The Profit Constructors’ "90-Day Remodel," a service designed to transform construction accounting practices. This program streamlines financial operations, turning chaotic systems into efficient, repeatable processes. The key components include:

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1. Simplified Metrics: Focus on practical KPIs, like Days Sales Outstanding (DSO), which measures how quickly invoices are paid.
2. Streamlined Cost Management: Reducing unnecessary complexity in cost codes to make data entry and reporting manageable for the field.
3. Clarity of Roles: Clearly assigning accountability for tasks like invoicing and collections.
4. Automation: Leveraging tools like Adaptive to automate data entry, reduce errors, and improve efficiency.

Why It Matters

When the back office and field are aligned, contractors can operate like "big dogs" in the industry—scaling operations with confidence. Here’s how streamlined processes fuel growth:

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• Improved Cash Flow: Timely invoicing and collections ensure you’re never scrambling to make payroll.
• Operational Certainty: Knowing exactly what’s coming in and going out gives you the confidence to make strategic decisions.
• Team Synergy: Clear communication and shared goals between the field and office eliminate friction and boost productivity.

Take Action

If you’re a contractor unsure about your cash flow or struggling with clunky back-office systems, ask yourself: Do you lack a clear understanding of your financials? Are you spending too much time on cumbersome processes? If the answer to either question is yes, it may be time to consider a financial remodel.