For many builders, tax season means stress, scrambling, and endless financial cleanup. Every year, contractors rush to get their books in order—digging through receipts, coding expenses, and trying to figure out where the money went. But what if tax prep wasn’t an all-consuming fire drill?

In our latest episode of Builders, Budgets & Beers, we sit down with Tim Savre, Controller at NS Builders, to talk about why financial organization shouldn’t just be a tax season priority—it should be a year-round strategy.

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From keeping track of job costs to making smarter business decisions, Tim breaks down why staying on top of your numbers throughout the year can save you time, money, and headaches.

The Tax Season Mentality: Why It’s a Problem

As contractors approach the end of the year, there’s a familiar phrase we hear over and over: “I’m slammed right now—trying to get everything ready for taxes.”

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That mindset leads to bad financial habits that make tax season overwhelming:

• Waiting until the end of the year to categorize expenses
• Scrambling to track down missing receipts and invoices
• Rushing to close out books, often making mistakes
• Not understanding real-time profitability throughout the year

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Tim, who has worked with hundreds of builders, sees it all the time—contractors treating tax prep as a once-a-year event instead of a continuous process. And that leads to more than just stress. It can cost you real money.

3 Big Reasons to Stay on Top of Financials Year-Round

Builders often think they only need to close their books for tax purposes, but monthly financial reviews are critical for:

Avoiding Costly Tax Mistakes

One of the biggest tax mistakes builders make? Paying taxes on money that isn’t technically revenue yet. Let’s say you take a $200,000 deposit in December for a project that won’t start until February. If your books aren’t updated properly, that deposit might get counted as revenue in December—meaning you pay taxes on it a year too early.

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A simple fix? Monthly WIP (Work-in-Progress) adjustments. By adjusting revenue and expenses based on actual project progress, you ensure you’re only paying taxes on earned income—not deposits that still have costs attached.

Knowing if You're Actually Profitable (Not Just Cash-Positive)

It’s easy to look at a bank account and think, “We’re doing great—we’ve got plenty of cash.”

But that number alone doesn’t tell you:

• If you’re under-billed on projects
• If your costs are outpacing revenue
• If you’re collecting enough deposits upfront

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Tim explains that many builders operate with a false sense of security because their cash flow looks good—until suddenly, multiple projects wrap up at the same time, invoices slow down, and reality hits hard.

A monthly financial close ensures that you’re tracking real profitability, not just cash in the bank.

Staying Ahead of Cash Flow Issues

Cash flow problems are the #1 reason builders go out of business—not bad projects, not bad clients.

Without accurate monthly financials, you could be:

• Under-billing clients and floating project costs out of your own pocket
• Missing out on change orders and cost-plus markups
• Overpaying vendors before client payments come in

Tim shares that some builders try to "manage" cash flow by opening separate bank accounts for each job—but this approach doesn’t fix the underlying issue. The real solution? Understanding where you stand financially at all times so you’re never caught off guard.

The Simple Fix: Treat Every Month Like Tax Season

The best builders don’t wait until April to figure out where their business stands. Instead, they:

✅ Categorize expenses as they happen—not months later

✅ Reconcile books monthly to catch errors early

✅ Adjust WIP regularly to keep revenue and costs aligned

✅ Review financials like a CEO—not just a builder

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Tim puts it simply:

"If you’re doing it right, closing your books in December should feel just like closing them in August. Tax season shouldn’t be a mad scramble—it should just be another month-end close."

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Take Control of Your Finances—Before Tax Season Hits Again

If you’ve ever felt the stress of tax season, it’s time to break the cycle. By staying on top of financials year-round, you’ll be able to make smarter business decisions, keep your cash flow healthy, and save time while reducing stress.

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Listen to the full episode now and learn how to take control of your construction finances for good.

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