# Forecasting Cash & Avoiding the Crunch
The contractors who survive cash crunches are the ones who **saw them coming.**
## Build a cash forecast
Project, week by week or month by month: expected **collections** (by job) vs. expected **outlays** (labor, material, subs, overhead). Your **WIP schedule** feeds this.
## Act early
- Keep a **cash reserve**.
- When the forecast shows a shortfall, act *now* — accelerate billing, draw on credit, or adjust spending — instead of panicking later.
**Takeaway:** Forecast your cash weekly — seeing the crunch early is the difference between managing it and panicking.
> *Educational content — not legal, financial, or accounting advice. Run your numbers with your CPA.*
