Bill clients accurately and get paid on time

This is where the actual work happens. Subcontractors complete their assigned scope -- covering all labor, equipment, materials, and related costs. Pro tip: Keep detailed records of every expense as you go. It's much easier to document costs in real time than to reconstruct them later when it's time to bill.

Now it's time to get paid for your work. Submit a detailed invoice to the General Contractor that itemizes everything -- labor hours, materials used, equipment costs, and your total. Don't forget to attach supporting documentation like receipts or time logs. The more detail you include upfront, the fewer questions you'll get back.

Go through each subcontractor invoice carefully. You're checking that the work was actually completed as specified, the rates match what's in the contract, and every line item is legitimate. In our experience, catching errors here saves you from awkward conversations later. Cross-reference against your project records before approving anything.

Put together your consolidated invoice to the Owner/Client -- this should include all project costs, your contractor fees, and any markup. Make sure all supporting materials and documentation are attached. A well-organized invoice doesn't just look professional; it gets paid faster because the Owner won't need to come back with questions.

Both parties sit down and review the invoice together. You're verifying that all charges are accurate, work was completed to satisfaction, and everything matches the contract terms. If there are discrepancies, now's the time to sort them out -- don't let issues carry forward to the payment stage. It's a lot harder to fix billing problems after money has changed hands.

Once the invoice is approved, it's time to process payment to the General Contractor. Use the agreed payment method -- whether that's check, wire transfer, or ACH. Always keep proof of payment on file. Quick tip: If you're paying by wire, double-check the routing details every time. One wrong digit can cause real headaches.

Now that you've received payment from the Owner, process payments to all your subcontractors based on their approved invoices. Don't forget to obtain lien waivers where required -- this protects you from future claims. Most experienced contractors won't release payment without a signed waiver in hand.

Record the payment you received as revenue in your accounting system. Then reconcile it against the expenses you incurred -- labor, materials, equipment, and anything else. Close out your job cost records for this project. This step matters more than people think: if you don't reconcile now, you'll lose track of your actual profit margins over time.

Collect every charge that needs to go on this invoice -- services rendered, products delivered, pass-through expenses, you name it. Check your time entries, completed projects, and fulfilled orders. Don't rush this step. Missing even one billable item means you're leaving money on the table, and adding it later looks unprofessional.

Confirm you're using the correct pricing for each customer. Pull up their contract and check for special rates, volume discounts, or specific payment terms. This might feel like a small detail, but billing the wrong amount -- even by a few dollars -- erodes trust fast. Teams that skip this step often find themselves issuing credit memos later.

Create the invoice with all your line items, applicable taxes, and totals. Double-check the math -- even if your software calculates it automatically. Make sure the customer name, billing address, and payment instructions are all correct. A quick review before sending can save you from embarrassing corrections. If someone else on your team can give it a second look, even better.

Deliver the invoice through whatever channel you've agreed on with this client -- email, a client portal, or postal mail. Attach any supporting documentation they'll need. Confirm delivery went through, and make a note of the due date. Pro tip: Sending invoices on the same day each cycle builds a rhythm that helps customers plan their payments to you.

Keep an eye on the due date and watch for payment. If it doesn't arrive on time, send a friendly reminder -- most late payments aren't intentional. Once payment comes in, record it and apply it to the invoice right away. Flag any accounts that go overdue for collection follow-up. In our experience, a polite nudge at 3 days past due works better than waiting weeks.