In construction, margins are tight, cash flow can be unpredictable, and one underperforming project can throw off your entire month. That’s why successful construction company directors don’t just glance at the bank balance – they rely on key financial construction reports to understand what’s really going on in their business.
In this blog, we’ll walk through the top 5 reports you should be reviewing every month – and how they help you make smarter, faster decisions.
📈 1. Project Profitability Report
Why it matters: It tells you which jobs are making money – and which ones aren’t.
Every project should be tracked individually, with income, labour, materials, and other costs clearly allocated. This report helps you:
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Compare actual vs budgeted profit
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Spot early warning signs on overruns or overspends
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Learn which project types or clients are the most profitable
Tip: Don’t wait until project completion – track profitability monthly so you can correct course in real time.
💰 2. Cash Flow Forecast
Why it matters: Profit doesn’t pay bills – cash does.
A rolling cash flow forecast helps you understand:
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When money is due in from clients
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When your liabilities are due out (wages, VAT, materials, etc.)
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Whether you’ll have a surplus or shortfall each month
This is essential for staying ahead of issues like delayed payments, unexpected costs, or project downtime.
Key takeaway: Forecast at least 3–6 months ahead – and update it monthly.
📊 3. Aged Debtors Report (Outstanding Invoices)
Why it matters: Construction is notorious for slow payments – this report helps you get paid faster.
Your aged debtors report shows:
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How much each client owes
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How overdue those invoices are
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Where your credit control efforts should be focused
Use it to:
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Follow up on overdue accounts
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Flag problem clients
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Prevent cash flow squeezes before they happen
Pro tip: Combine this with a weekly credit control call to stay on top of collections.
🧮 4. Work in Progress (WIP) Report
Why it matters: Your accounts may show profit – but that doesn’t mean it’s been earned yet.
The WIP report tracks the value of work completed but not yet invoiced, helping you:
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Avoid overstating profits
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Recognise revenue accurately
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Track project progress financially, not just operationally
Without WIP reporting, you could be unknowingly inflating your accounts – or missing revenue that should be on the books.
📋 5. Management Accounts (P&L, Balance Sheet, KPIs)
Why it matters: You need the full picture, not just project-level data.
Your monthly management accounts should include:
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Profit & Loss (P&L): Shows overall business profitability
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Balance Sheet: Tracks assets, liabilities, and equity
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Key KPIs: Gross margin %, overheads, cash reserves, debtor days
This is where you zoom out to see whether the business is moving in the right direction.
Bonus tip: Look at trends – compare this month vs last month vs year-to-date.
⚙️ How to Make Reviewing These Reports Easy
Use cloud software to automate and streamline your reporting:
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Xero / QuickBooks / Sage – Financial reporting & project tracking
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Futrli / Fathom / Syft – Management reporting and forecasting
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Buildertrend / Procore / CoConstruct – Construction project performance tracking
Or partner with a construction-specific accountant who can generate and explain these reports every month – saving you time and giving you real clarity.
🚧 Real-World Example
A fit-out contractor turning over £3.5M came to us with good sales but unpredictable cash flow. They weren’t tracking project profitability or WIP. We helped them:
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Build monthly reports for each active site
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Set up a 12-month rolling cash flow forecast
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Introduce monthly management reports with commentary
The result? They improved project margins, reduced debtors by 28%, and started making proactive business decisions rather than reactive ones.
👷 Need Help Building These Reports?
At Thomas Emlyn Ltd, we help construction business owners set up clear, consistent monthly reporting so they can:
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Stay on top of margins
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Protect cash flow
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Avoid nasty surprises
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Make better strategic decisions
📞 Book a discovery call – and take control of your numbers.
📌 Final Thoughts
Your financial reports are more than admin, they’re the dashboard for your entire construction business.
Review these five reports every month, and you’ll always know where you stand, and what to do next.
