Question 1

What is a CEO Report for a construction subcontractor?

Accepted Answer

A CEO Report is a monthly financial dashboard that shows a subcontractor their real numbers — revenue trend, gross margin by period, cash position, and where the business stands financially — without requiring the owner to be an accountant. SPM's free CEO Report is generated automatically from uploaded financial statements.

Question 2

What financial reports does a construction subcontractor need?

Accepted Answer

At minimum: a monthly P&L, a balance sheet, a cash flow statement, and job cost reports for active projects. The CEO Report combines P&L and balance sheet data into a single dashboard so the owner can see revenue, margins, and cash position in one view without digging through individual reports.

Question 3

How do I know if my construction business is actually profitable?

Accepted Answer

Profitability in construction has to be measured at the job level, not just on the P&L. A business can show net income on paper while individual jobs are losing money and cash is draining. The CEO Report shows margin trends over 13 months so patterns become visible — not just the current month snapshot.

Question 4

Why is my construction company profitable on paper but short on cash?

Accepted Answer

Because profit is an accounting concept and cash is what actually hits your bank. In construction, the gap between the two is driven by billing timing, pay-when-paid terms, retention held back until closeout, and costs going out faster than collections come in. A CEO Report shows both so you can see where the disconnect is.