Accuracy of Performance Data

Contractors often treat financial statements as paperwork required from their banks and bonding companies, but their real value is as a tool for managing the business. This chapter explains why accurate and timely performance data is essential for survival. Late invoices, overstated receivables, and understated payables distort cost reports and make profits look better than they really are. When decisions are based on flawed information, contractors may continue down the wrong path until it is too late. The author draws on decades of research and case studies to show how inaccurate field data, delayed recording of costs, and weak attention to overhead contribute directly to business failures. You can’t manage your projects if you don’t measure performance correctly. Success depends on improving the accuracy and speed of field reporting by demanding timely invoices from vendors and subs and giving operations reliable data to guide decisions in real time.