You buy lumber, wire, or parts for a job that starts Monday. Checking drops. You still feel rich because “the customer will cover it.”

That money already left. Until the job pays, those materials are spoken-for cash — not free cash you can raid for a truck payment or a draw.

Here is the trap: owners look at the bank after a materials run and think, “we are fine, that spend belongs to the job.” Then they spend again from the same balance. Suddenly payroll week hits and the account is thinner than the gut said.

Simple habit: when you buy for a future job, treat that cash as earmarked. Mentally (or in a separate bucket) pull it out of “spendable” until the job deposits. Your free cash is what is left after materials, tax set-aside, and bills — not the raw bank number.

Want books that show free cash vs spoken-for cash without the jargon? Reach out here and we will look at your real numbers. You can also see our services.

— Jake / Wenonah Bookkeeping