How a Contractor Found $75,000 in Hidden Cash—And How You Can Too

Most contractors work hard, generate solid revenue, and still struggle with cash flow. If that sounds familiar, you’re not alone.

Meet Jason, a general contractor who was bringing in over $1 million per year in projects—but his bank account told a different story. He was constantly juggling payments, borrowing money to cover payroll, and waiting weeks (sometimes months!) for client payments to arrive.

Jason wasn’t broke—his cash was just trapped in places he didn’t realize. After using the Mining Your Business for Hidden Cash worksheet, he found $75,000 in hidden cash without raising prices or taking on new debt. Here’s how.

The Cash Flow Audit: Where Was the Money Hiding?

Jason sat down with his accountant, Lisa, who specializes in client advisory services (CAS). She used the Mining Your Business for Hidden Cash worksheet to diagnose where his cash was stuck.

Here’s what they found:

1. Late Invoicing Was Costing Him Thousands

When Lisa asked Jason, "How soon do you invoice after completing a project?", his answer was eye-opening:

"We usually wait until the end of the month to send invoices."

That meant Jason was waiting 30+ days just to request payment, and clients were taking another 30-60 days to pay. Some were even late.

???? The Fix: Jason’s team started invoicing immediately after hitting project milestones instead of waiting until month-end.

✔ Impact: His average payment time dropped from 60 days to 35 days, freeing up $40,000 in cash flow.

2. Supplier Payments Were Due Before He Got Paid

Jason’s business had a cash flow gap:

• Clients took 45-60 days to pay.
• His suppliers demanded payment upfront.

To bridge the gap, Jason was relying on a $50,000 line of credit, paying thousands in interest.

???? The Fix: Lisa helped Jason negotiate net-30 and net-60 terms with his suppliers, syncing his outflows with his inflows.

✔ Impact: He cut his credit line usage in half, saving $12,000 in annual interest payments.

3. Unused Equipment Was Draining His Cash

The worksheet also flagged a major expense leak—leased equipment. Jason had three pieces of rented machinery that were barely being used, costing him $2,000 per month.

???? The Fix: Jason canceled unnecessary leases and switched to renting equipment only when needed.

✔ Impact: He saved $24,000 per year in wasted equipment costs.

Total Hidden Cash Unlocked: $75,000

In just a few weeks, Jason’s business saw a huge improvement in cash flow—without increasing revenue.

• $40,000 recovered by fixing invoicing delays.
• $12,000 saved by reducing reliance on credit.
• $24,000 freed up by eliminating wasted equipment costs.

Total: $75,000 in hidden cash—now back in Jason’s business.

How Accountants & Bookkeepers Can Help Clients Do the Same

Jason’s accountant, Lisa, didn’t just crunch numbers—she acted as a trusted advisor and helped transform his business.

This is the power of Client Advisory Services (CAS). By using tools like the Mining Your Business for Hidden Cash worksheet, accountants and bookkeepers can:

✔ Uncover cash flow gaps clients don’t see.
✔ Provide strategic financial advice, not just reports.
✔ Build deeper, more profitable relationships with clients.

Find Hidden Cash in Your Clients' Businesses

Want to help your clients unlock thousands in trapped cash like Jason did? Download the Mining Your Business for Hidden Cash worksheet and start identifying cash flow leaks today.

[⬇ Download the Free Worksheet Now ⬇]