Business Case: HVAC

HVAC Commercial

Result: Improved cash position by $900K to $1.4M by fixing billing timing

The situation
Commercial HVAC companies typically collect in 45 to 55 days due to project billing cycles. This operator was closer to 65 days, largely due to delayed invoicing after work completion.

What we did
We redesigned the billing workflow using the CFO Practice cash management framework.

How it worked step by step

1. Reviewed work order close out versus invoice send dates

2. Identified a 7 to 10 day lag between job completion and billing

3. Standardized same week invoicing

4. Added billing milestones tied to project progress

5. Monitored weekly billing velocity inside the forecast