Construction CFO Services
Helping Construction Companies Build More Profitably Through Strategic Financial Leadership
At K-38 Consulting, we partner with construction firms to provide high-impact fractional CFO services tailored specifically to the challenges and opportunities within the construction industry. Whether youโre a general contractor, subcontractor, or construction management firm, our goal is to help you operate with greater financial clarity, improve project profitability, and achieve long-term growth.
The construction industry is complex, with constantly shifting project timelines, labor fluctuations, supply chain volatility, and intricate billing structures. These realities require a financial strategy that adapts quickly and provides you with the insights needed to make sound decisions. Thatโs where we come in.
Our team brings decades of experience working with construction businesses of all sizes. From managing cash flow and job costing to financial forecasting and navigating bonding requirements, we provide the strategic oversight and systems your business needs to thrive.
Construction CFO Services for Startups
What Our Construction CFO
Services Include
We provide a wide range of financial leadership and oversight services to construction companies, including:
Job Costing and Profitability Analysis
We help you implement detailed job costing systems to track actual costs against estimates, ensuring profitability on every project.
Cash Flow Forecasting
Construction cash flow is notoriously volatile. We help you anticipate incoming and outgoing cash so you can avoid surprises and plan confidently.
Work-in-Progress (WIP) Reporting
We provide oversight of your WIP schedule to ensure accurate financials and informed reporting for internal management, banks, and bonding companies.
Billing, Pay Applications, and Change Orders
Our team supports you in streamlining your billing process, including tracking change orders and ensuring timely and accurate pay applications.
Subcontractor Management and Retainage Tracking
We help implement systems to track subcontractor payments, retention liabilities, and lien waivers to reduce risk and improve vendor relationships.
Overhead Allocation and Breakeven Analysis
We help you allocate indirect costs properly and determine breakeven points to support pricing strategy and cost control.
Labor Burden Analysis
We help construction companies accurately estimate true labor costs, including taxes, benefits, insurance, and other indirect labor costs.
Budgeting and Scenario Planning
We work with owners and executives to prepare annual budgets, multi-project forecasts, and scenario analyses based on backlog and market trends.
Equipment Planning and Capex Management
We assist with planning capital expenditures for heavy equipment, depreciation schedules, and financing options to maximize ROI.
Bonding and Financial Statement Preparation
We ensure your financials meet the requirements of bonding and surety companies, and help you communicate effectively with banks and investors.
Accounting Oversight and Controller Support
We provide leadership over your accounting function, ensuring timely close processes, reconciliations, and clean books that reflect operational reality.
Why Construction Companies Need a Fractional CFO
Many construction business owners rely on bookkeepers or project managers to handle accounting and financial matters. While these professionals play an important role, they often lack the high-level financial strategy and forecasting required to scale operations and remain competitive.
Hiring a full-time CFO may not be feasible for small to mid-sized firms, but a fractional CFO provides access to the same expertise at a fraction of the cost.
- Improve project margins
- Reduce financial waste and inefficiencies
- Plan for growth with confidence
- Navigate economic uncertainty
- Increase visibility into financial performance
- Present better financials to bonding agents and banks
We donโt just look at the numbers โ we help you understand whatโs driving them and how to improve them.
Deep Expertise in Construction Accounting and Finance
Construction accounting is fundamentally different from other industries. The use of percentage-of-completion revenue recognition, retention accounting, and project-based reporting introduces challenges that most traditional accountants and CFOs are not equipped to handle.
Our team understands:
- Revenue recognition for long-term contracts
- Direct and indirect cost allocation
- Work-in-progress (WIP) tracking
- Job schedule reporting and project cost variance analysis
- Multi-entity and intercompany transactions
This specialized expertise allows us to integrate seamlessly with your existing team, identify areas for improvement, and implement best practices to support financial growth.
How We Work with Construction Firms
Our engagements typically begin with a discovery and onboarding phase, where we:
- 1. Review your current financial statements, systems, and reporting processes
- 2. Evaluate project-level reporting, job costing, and WIP schedules
- 3. Meet with ownership and project management to understand your pain points
- 4. Develop a custom roadmap for improvement, based on your goals and priorities
From there, we provide ongoing CFO support on a fractional basis, which may include:
- Monthly or quarterly financial reviews
- Forecasting and KPI tracking
- Oversight of the month-end close and WIP schedule
- Management of the accounting team and controller-level functions
- Support with budgeting, banking relationships, bonding submissions, and more
We tailor our involvement to your firmโs size, structure, and needs โ whether that means working directly with the owner or supporting an internal accounting team.
Who We Serve
Weโve helped all types of construction-related companies across the country, including:
- General contractors
- Heavy civil contractors
- HVAC, electrical, and plumbing contractors
- Roofing, siding, and exterior construction firms
- Commercial and residential builders
- Construction management firms
No matter your trade or specialization, if you’re looking to strengthen your financial operations and position your company for the future, we can help.
Letโs Build a Better Financial Future for Your Construction Firm
If youโre ready to take control of your companyโs financial performance and make smarter, data-driven decisions, letโs talk. Our experienced CFO team is ready to support you with the systems, strategy, and insight needed to build lasting success.
Schedule your free consultation with K-38 Consulting today and see how we can help your construction business reach new heights.
faq
Frequently Asked Questions
What is a fractional CFO and how does it work for construction companies?
A fractional CFO is a part-time Chief Financial Officer who provides high-level financial guidance and strategy without the cost of a full-time hire. For construction firms, this means expert support in managing cash flow, improving job profitability, and navigating financial decisions on a flexible, as-needed basis.
How is construction accounting different from regular accounting?
Construction accounting involves project-based revenue recognition, WIP (Work in Progress) schedules, retention tracking, and complex job costing โ all of which require industry-specific knowledge and systems to manage effectively.
Can K-38 Consulting help us get bonded or prepare for bank financing?
Yes. We work closely with construction firms to ensure their financial statements are bond-ready and can withstand lender scrutiny. We also help with cash flow forecasting and financial strategy that support successful bonding and loan applications.
Do you replace our current accountant or work with them?
We often work alongside your internal accounting team or external CPA. Our role is to provide strategic oversight, identify inefficiencies, and elevate financial reporting and forecasting, while your accountant manages the day-to-day bookkeeping.
What size construction firms do you typically work with?
We work with construction businesses of all sizes, but we specialize in helping small to mid-sized firms that are growing rapidly and need financial infrastructure and leadership to scale profitably.
How do we get started with your services?
We begin with a complimentary consultation to understand your business and challenges. From there, we design a custom engagement that matches your firmโs needs, whether ongoing CFO support or a focused financial project.
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We are the experts at helping startups and mid-size businesses with their accounting and finance.
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We are the experts at helping startups and mid-size businesses with their accounting and finance.
