Fixing Working Capital Without a Finance Team: The Weekly Checklist

Introduction - Fixing Working Capital

Working capital, the money you use to keep your business running day-to-day, is often the first sign of financial strain in construction and engineering firms.

Late client payments, retentions, and supplier demands can all drain cash before profit ever hits the bank.

If you don’t have a finance team watching the numbers every week, you’re not alone. Most growing SMEs operate with limited admin support and only review figures at month-end, by which point it’s often too late to fix the issue.

At Jones Financial Accounts (JFA), we help businesses manage working capital even without an in-house finance department. This blog outlines the five key things to track weekly, why they matter, and how to bring control back into your cash cycle.

(For a deeper overview, read our related blog: What Is Working Capital and Why Does It Matter?)

What You Need to Review

Working capital isn’t just an accounting term, it’s the fuel that keeps your projects moving. Without control, even profitable firms can run out of cash. Below are the top five areas to review weekly, ranked by importance for construction and engineering companies.

1️⃣ Debtor Days (Money Owed to You)

This is the single biggest drain on working capital in construction. When invoices take 45–90 days to clear, often due to valuations, retentions, or approval delays, it ties up cash you need to pay wages, buy materials, and fund the next job.

Track:

• Outstanding invoices by client and by age (0–30, 31–60, 61+ days).

• Retentions separately, don’t let them disappear into general debtors.

• Total value of applications raised vs. payments received.

  
  

Why?

Each week you delay follow-up is a week your cash flow weakens. Reducing debtor days from 60 to 45 could free up enough cash to fund an additional project without borrowing.

(For practical steps, see The Two Risks of Credit Control: Late Payment and No Payment).

2️⃣ Supplier Payments and Credit Terms

Your suppliers’ credit terms dictate how long you can hold onto cash. The goal isn’t to delay payment unfairly, it’s to balance inflows and outflows.

Track:

• Which suppliers you owe this week and next.

• Payment due dates vs. expected client receipts.

• Any credit limits or early payment discounts.

Why?

When supplier and client payment cycles don’t align, cash flow gaps appear. Negotiating 45-day terms instead of 30 could ease short-term strain without damaging relationships, but only if you have data to support the request.

3️⃣ Work in Progress (WIP)

In construction, WIP equals cash trapped on site. Every job halfway done without valuation or invoice raised means money left unpaid.

Track:

• Work completed but not yet invoiced.

• Labour and material costs incurred on live jobs.

• Stage payments due for submission.

  
  

Why?

A project showing £50,000 in WIP is effectively a £50,000 interest-free loan to your client. Weekly tracking ensures commercial teams raise applications promptly and push for valuation sign-offs on time.

4️⃣ Stock and Material Levels

Stock ties up cash just as much as unpaid invoices do. Many engineering and construction firms over-purchase materials “just in case,” creating waste and bloated balance sheets.

Track:

• Stock on hand vs. upcoming project requirements.

• Write-offs, surplus, or unused materials.

• Delivery schedules for bulk orders.

  
  

Why?

Reducing unused stock by even 10% can release thousands in working capital. Use supplier consignment or just-in-time delivery where possible.

5️⃣ Bank Balance Forecast (Next 4 Weeks)

The simplest yet most powerful report you can maintain.

Track:

• Expected cash in vs. cash out weekly.

• Loan repayments, VAT, PAYE, and CIS obligations.

• Overdraft utilisation and headroom.

  
  

Why?

Forecast visibility prevents panic borrowing. A 4-week rolling forecast, updated weekly, is the foundation of good working capital control, even without a full finance team.

(For more on forecasting, see Cash Flow Forecasting: The One Habit That Can Save Your Business).

Strategy to Get It Right

Even without a finance team, you can bring discipline to your cash cycle using simple routines.

• Assign ownership. Give one senior person (MD, Commercial Lead, or Office Manager) responsibility for updating weekly cash flow.

  
  

• Set review cadence. Every Friday, review key metrics: cash in/out, aged debtors, WIP, and upcoming liabilities.

  
  

• Link to operations. Use this meeting to decide priorities: which invoices need chasing, which valuations must be submitted, and which supplier payments can wait.

  
  

• Push valuation schedules. Agree submission and approval timetables with clients early.

  
  

• Track job costs live. Knowing what’s been spent vs. billed helps prioritise invoicing.

  
  

• Hold WIP meetings. Review outstanding works not yet invoiced every week.

  
  

(For guidance, see 5 Monthly Finance Reports You Should Be Reviewing – and Why).

Common Mistakes

Mistake 1: Tracking cash monthly, not weekly. By the time you notice an issue, it’s too late to fix it.

Mistake 2: Ignoring retentions. These small sums accumulate, for many firms, they equal an entire month’s turnover locked away.

Mistake 3: Paying suppliers early but chasing clients late. The timing mismatch is a classic cause of cash shortages.

Mistake 4: Relying on profit as a sign of health. Profitable businesses go bust when cash flow is neglected.

Mistake 5: No ownership. When no one “owns” working capital, it quietly erodes until the overdraft is maxed.

Financial consequences: Late VAT or CIS payments, increased overdraft costs, and poor credit ratings.

Operational consequences: Delayed materials, strained supplier relationships, and project overruns.

Reputational consequences: Loss of trust from both clients and subcontractors.

Key Takeaways

• Working capital is your lifeline, track it weekly, not monthly.

• Focus on debtors, suppliers, WIP, stock, and short-term cash flow.

• Small improvements free up huge amounts of cash without new funding.

• You don’t need a finance team, just the right system, routine, and accountability.

Wrapping up today's insights, tomorrow we simplify another accounting challenge.