The 5 Financial Reports Every Electrical Business Should Review Monthly
Introduction — Why Strong Sales Don’t Guarantee Financial Health
Many electrical businesses assume that if projects are booked and margins look solid, the business must be financially healthy. But sales volume and project margins only tell part of the story.
The real danger comes when leadership lacks visibility into how cash actually moves through the company. Without consistent reporting, revenue timing errors go unnoticed, receivables pile up, and overhead quietly eats away at profit. The result is a business that looks successful on paper but struggles to make payroll, cover vendor bills, or keep the credit line under control.
The truth is simple: you can’t fix what you can’t see. And the best way to see clearly is through disciplined monthly reporting.
The 5 Reports That Protect Profit and Cash Flow
Profit & Loss (P&L) by Service Line
A single P&L often hides what’s really happening. Breaking it down by service line or division shows which areas are pulling their weight and which are draining profit.
Work-in-Progress (WIP) Report
Without WIP reporting, revenue recognition can be misstated by hundreds of thousands. This report aligns costs, completion percentage, and billing to show whether revenue is recorded in the right period.
Aged Accounts Receivable (AR) Report
Late collections silently strangle cash flow. An AR aging report makes overdue invoices visible, tracks DSO (days sales outstanding), and holds someone accountable for follow-ups.
Overhead Budget vs. Actual
Overhead doesn’t look dangerous until it’s out of control. A budget vs. actual report shows whether costs like overtime, subscriptions, and admin expenses are creeping above target before they eat margins.
90-Day Cash Flow Forecast
This forecast projects inflows and outflows weekly, stress-tests scenarios, and shows whether payroll and vendors will be covered without over-relying on the line of credit.
Together, these five reports create a monthly dashboard that gives leadership visibility, control, and confidence.
Case Study — From Flying Blind to $830K in Gains
One $15M contractor we worked with looked profitable on paper but was constantly short on cash. Here’s what we uncovered :
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A $1.2M project backlog but no WIP reporting → revenue recognition was off by $300K.
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$480K in receivables past 60 days → payroll became a monthly fire drill.
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Overhead up 22% year-over-year with no budget → $190K of profit erased.
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No 90-day forecast → the $250K credit line was maxed.
The fix came down to implementing the five reports:
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P&L by service line revealed one division operating at only 6% margin against an 18% target.
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WIP report corrected the $300K revenue timing issue.
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Aged AR report cut DSO by 21 days and freed $380K in cash.
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Overhead budget vs. actual trimmed $150K in waste.
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90-day cash flow forecast reduced reliance on the $250K LOC by 80%.
The Results — $830K Swing in 12 Months
Within one year, the company achieved an $830,000 improvement in its cash and profit position. More importantly, leadership had visibility for the first time in years. Instead of guessing or reacting after the fact, they could make proactive decisions based on accurate, timely reporting .
What Leaders Should Take Away
The lesson is clear: strong sales and margins mean nothing without disciplined reporting. The right dashboard doesn’t just highlight problems — it gives you the tools to fix them before they spiral.
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Track profitability by service line.
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Monitor WIP to prevent revenue timing errors.
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Hold collections accountable with AR aging.
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Keep overhead in check with budget vs. actuals.
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Use a 90-day forecast to protect liquidity and reduce credit dependence.
Conclusion — Visibility Creates Control
Flying blind financially is one of the most common — and most dangerous — risks for growing electrical businesses. But with the right monthly reports, you gain visibility into your true performance, protect cash, and create a foundation for sustainable growth.
For this $15M contractor, those five reports created an $830K swing in one year. For your business, they could be the difference between constant cash stress and confident, profitable growth.
👉 Want to build your own dashboard? Download my 5-step Monthly Dashboard Checklist or book a quick 20-minute reporting review.
