Cash flow and change order management

RCS Influencer Aaron Weinstein says change order managament is the key to structuring cashflow. 

Editor's note: The following is a transcript of a conversation with Aaron Weistein of Terial. You can listen to the interview or read the transcript below.

Lauren White: Hello everyone, I'm Lauren White here with RoofersCoffeeShop.com for our July influencer response, and I am here with Aaron Weinstein. Good to see you, Aaron.

Aaron Weinstein: Great to see you, Lauren.

Lauren White: So today our July topic is backlog versus cash flow reality. So Aaron, what do you have to share with us?

Aaron Weinstein: Yeah, this is of course probably the most important thing you can do for your business is to effectively manage manage your cash flow. I think there one area that is really underserved by the the roofing contractor, where if there's a little more emphasis you can put on this, it's going to really make or break reality for your profits, would be change order management. So I think one of the first things you can do is to have a really effective system for tracking, billing and documenting all the change orders that your team is doing, especially in the summer season when it's really busy. You need to make sure that you're getting support from the field who are performing and getting those change orders approved. The last thing you want to do is be in a situation where your team has done the work, you've paid the the wages, the additional materials, but you haven't billed that to the customer. So I think change order management is one of those silent killers where ten, fifteen, twenty percent of your project can be billed in the form of change orders. And a lot of folks don't properly job cost for that or properly track it. So having a system in place where you can track it from the field back to the office, and then make sure that you are following up appropriately with with your client and the customer, that's really incredibly powerful and important.

Lauren White: Yeah, you have to streamline that and make it easy on yourself. Well, Aaron, thank you so much. For those of you listening, be sure to check out Aaron's influencer directory as well as their directory with Terial on RoofersCoffeeShop.com. And we will see you for the August question next month.

Aaron Weinstein: Absolutely. Awesome. Thank you, Lauren.

Lauren White: Thank you.