Why Builders Need a Monthly Financial Health Check (And What Should Be In It)

You wouldn’t go a month without walking your job sites. So why go a month without reviewing the financial health of your business?

Most builders operate on gut feel when it comes to finances. They check the bank balance, glance at a few invoices, and hope the projects stay on track. But without a structured monthly financial check-in, it’s easy to miss the leaks that erode your margin and kill your cash flow.

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A monthly financial health check doesn’t need to be complex or time-consuming, it just needs to be consistent. Here’s why it matters and what it should include.

Why Monthly Matters

Construction is a fast-moving business. Costs change daily. Sub payments, change orders, materials… if you’re not reviewing your numbers regularly, you’ll always be reacting instead of planning.

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Monthly check-ins give you:

• A rhythm for catching issues early
• Data to drive better decisions
• Clarity across teams (PMs, owners, accounting)
• Confidence when speaking to banks, clients, or investors

Monthly reviews aren’t about perfection. They’re about direction.

What to Review in Your Monthly Check-In

Here’s what top builders include in their financial check-ups:

1. Budget vs. Actuals by Job

Where are you tracking above or below expectations? Are overruns isolated or systemic?

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Look at:

• Top 5 cost codes over budget
• Projects with the largest variance
• Jobs that haven’t updated actuals recently

2. Work-in-Progress (WIP) Report

Your WIP isn’t just a CPA tool, it tells you:

• Are you over/underbilled?
• Are you sitting on unearned revenue?
• Is your margin tracking where it should be?

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If your WIP report surprises you, you’re not reviewing it often enough.

3. Unpaid Bills & Aging AP

How much do you owe? Who’s overdue? What’s about to hit?

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Reviewing your AP monthly helps you:

• Avoid payment delays
• Keep vendors happy
• Plan draws and cash flow better

4. Undrawn Costs

Cash flow often breaks when you miss costs that could have been billed.

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Check:

• Which jobs have high undrawn balances
• What categories are being missed
• If field teams are submitting receipts consistently

5. Overhead & Operating Expenses

Job costs matter, but so does what happens at HQ.

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Monthly, review:

• Office expenses, software, subscriptions
• Owner compensation and distributions
• Burn rate if job flow slows down

6. Open Draws & Funding Status

Is money in the pipeline? Are draws sitting unsubmitted?

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Track:

• Open draws by project
• Approvals still pending
• Backup still missing

7. Receipts & Documentation Compliance

Your numbers are only as good as your backup.

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Review:

• Missing receipts or documents
• Incomplete approvals
• Any compliance docs about to expire

Make It a Meeting, Not Just a Report

Don’t just send numbers, review them with your team. Monthly reviews should be:

• Collaborative, not punitive
• Focused on trends, not blame
• A chance to ask: “Where are we exposed?” and “What can we fix?”

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Make it a standing 60-minute meeting with leadership, finance, and operations. Over time, it’ll become your most valuable habit.

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