6 Ways Accounts Receivable Reporting Can Boost Subcontractor Profitability

As the financial backbone of the construction industry, subcontractors face a persistent paradox: first to perform work, last to get paid. This gap—90 days for most—creates a constant strain on working capital that challenges even the most well-established operations. And in today’s unpredictable economy, with fluctuating material costs and recent tariff increases, slow payments are placing even more pressure on already tight margins.

While you can’t control when general contractors (GCs) release payments or predict the next market disruption, you can harness the power of your financial data to build resilience and protect your margins. The right accounts receivable (A/R) reporting can reveal hidden patterns, identify opportunities, and provide the financial clarity needed to make sound business decisions in any market.

This article expands on key insights from our recent webinar, “Data to Dollars: A/R Reporting Strategies for Subcontractors,” where we share proven methods for extracting actionable intelligence from billing, A/R, and cash flow data. Give it a peek!

Putting Your A/R Data to Work

We’ve talked about the importance of monitoring A/R aging plenty—it’s one of the most crucial steps to collecting your hard-earned cash. But, what are you actually taking away from this data beyond past-due invoices?

Here are six key ways you can leverage your A/R data to strengthen your business’s cash position.

1. Target work with fast-paying GCs.

A/R aging reports reveal payment patterns across your client base, including which GCs consistently pay on time and which ones chronically pay late. By tracking this data, you can:

• Prioritize bids for projects with reliable payers
• Adjust your bid pricing to account for carrying costs with slower-paying clients
• Limit exposure to habitually late-paying clients
• Make informed decisions about which relationships truly contribute to your bottom line 

It’s not uncommon to discover that GCs offering the highest value projects aren’t always the most profitable once time-to-payment enters the equation. This insight will allow you to be more selective with your resources and ensure your bids reflect the true cost of doing business with each client.

Siteline’s A/R aging report shows total amounts for outstanding pay apps (over 30, 60, 90, and 120 days) and the average time to payment over the last six months—all filterable by project type, GC, office, and lead PM.

2. Track your PMs’ financial performance.

Billing reports—here’s why we love them: they show just how effectively your PMs handle their financial responsibilities. By comparing these metrics across your field team, you can:

• Identify which PMs consistently meet billing deadlines
• Recognize those who excel at pursuing collections
• Spot who’s best at documenting and processing change orders
• Create targeted training based on real performance data

As stated in this CFMA article, “The sooner work can be billed, the sooner it can be collected.” When PMs understand how their actions directly impact cash flow, they become powerful allies in improving your company's financial position.

In Siteline, you can filter gross billing totals by PM to quickly see who’s billing what this month, how much is in draft, total retention held to date, and more to spot any billing process issues among PMs quickly.

3. Project future cash position with greater accuracy.

While contractual payment terms provide a starting point, experienced subcontractors know that actual payment timing often varies due to approval processes, compliance verification, and payment application reviews. Your historical payment data, on the other hand, can reveal these patterns, allowing you to:

• Create realistic predictions for when specific clients will actually pay.
• Optimize timing for vendor payments, payroll, and other operational expenses.
• Build cash forecasts based on documented payment behaviors—like a particular GC that consistently pays 15 days after the due date—to create a more accurate picture of when cash will hit your account.

Siteline’s cash forecasting feature allows you to pinpoint payment trends and timing, enabling better alignment of cash inflows and outflows while maintaining an accurate cash position.

4. Optimize resource planning through backlog analysis.

Your current backlog data can generate precise billing forecasts that show expected revenue over the next few months, naturally revealing any gaps in the billing schedule. This data goes a long way toward bolstering your cash planning, helping you:

• Coordinate staffing, equipment needs, and material purchases in alignment with project timelines.
• Make growth decisions based on actual financial capabilities rather than overly optimistic projections.
• Determine when to invest in new equipment or hire additional staff.

This promotes business decisions that are grounded in your financial position rather than gut feelings.

Siteline’s billing forecast tab shows expected monthly billing across all projects, along with backlog insight to inform upcoming growth and investment plans.

5. Monitor payment status and streamline collections in real time.

Real-time visibility into payment status across projects is a beautiful thing. At any moment, everyone from your back office to your field team can see exactly which invoices are past due and take immediate action.

With the right system (like Siteline) in place, you can:

• Filter invoice status by project type, office, or PM to assess overall financial health quickly.
• Drill down into specific areas that need attention without wading through spreadsheets.
• Eliminate unpaid invoices that fall through the cracks due to a lack of follow-up.
• Transform collections into an automated process with timed reminders and internal tasks.

A significant portion of late payments stems from internal communication gaps rather than client issues. Real-time visibility bridges those gaps while transforming A/R escalation efforts from a reactive, often uncomfortable process into a systematic approach that removes the emotional aspect. This helps subcontractors maintain professional working relationships while improving cash flow.

See the status of all pay apps across all projects to identify cash flow bottlenecks in Siteline.

6. Spot at-risk projects early.

Last but not least, regularly comparing bill-to-date versus contract totals is a total game-changer when it comes to keeping your projects on track. This info enables you to quickly identify projects that are falling behind schedule or experiencing scope creep. For example, when a project is 80% complete but only 60% billed, that’s your signal that something’s amok—perhaps change orders are not getting processed or billable work isn’t properly documented. 

Overall, this is a simple and effective strategy for addressing revenue leakage before it’s too late to resolve.

Implementing Effective A/R Reporting

Many construction firms are held back by fragmented systems, manual processes, and information silos that make comprehensive reporting nearly impossible. However, we’re seeing more and more subcontractors abandon these disjointed approaches in favor of integrated solutions that provide 360-degree visibility into their financial health. Capable of generating insightful reports in seconds, these tools are critical for proactively addressing payment issues and driving decisions rooted in real data.

Siteline was built to solve the unique billing challenges that keep subcontractors up at night. Our software replaces fragmented A/R workflows with a centralized system that streamlines every aspect of the billing process—from generating custom pay applications and tracking payment patterns to managing change orders and forecasting cash flow. The result is simple: you capture all billable work and get paid faster.

Ready to take control of your A/R? Request a 30-minute demo to see how Siteline can revamp your approach to financial management and protect your margins in any market condition.