Why Security System Contractors Run Out of Cash.
Commercial security system contractors lose cash to three structural gaps: equipment procurement costs — cameras, access control hardware, panels — that hit before any SOV milestone, service contract revenue that creates an ongoing cash commitment separate from installation billing cycles, and GC billing cutoffs that slide draws 30 days when missed. On a $2M security contractor doing commercial installation work, equipment deposit requirements alone can run $150K–$250K before the first draw.
Commercial security system contractors — doing access control, camera systems, intrusion detection, and integrated building security for commercial and institutional clients — have a financial structure that looks similar to electrical contracting but has distinct job costing requirements. Equipment is specialized, expensive, and requires deposits early in the project timeline. Service contracts create a revenue stream with its own billing cycle that runs parallel to installation work. Most generic accounting setups blend these together and the numbers become meaningless for managing the business.
Why Security Cash Gets Tight
Equipment Procurement Deposits
Commercial security hardware — access control systems, camera arrays, intrusion panels, intercom systems — requires deposits weeks before installation. On a $500K commercial security job, equipment deposits can run $80K–$150K before the first SOV billing event. If not structured as a front-loaded SOV line item, it comes out of operating cash.
Service vs Installation Billing Mix
Security contractors doing both installation work and ongoing service/maintenance contracts have two different billing cycles running simultaneously. Service contracts bill monthly. Installation work bills on SOV milestones. When both run through the same P&L without separation, the profitable one hides the losing one until quarterly review.
GC Pay Cycles and Retainage
Commercial security work done as a subcontract carries GC pay cycles and retainage like any other trade. Net 45–60 is standard. 10% retainage held through project close. On a $1M security job with 60-day pay cycles and 10% retainage, $250K–$300K of earned revenue is in the pipeline at any given time.
What CFOS installs for security system contractors: Equipment procurement as a front-loaded SOV line item recovered at contract execution. Separate P&L tracking for installation vs service revenue. GC billing cutoff calendar. Weekly AR follow-up. 13-week cash forecast. Monthly CEO report covering installation margins by project and service contract performance separately.
FLAT MONTHLY FEE. NO SURPRISES.
- ControlQore setup and job costing
- Full-service bookkeeping
- Monthly job cost reports
- Everything in Core
- Monthly CFO advisory meeting
- Cash forecasting and AR follow-up
- Strategic accountability
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