Financial Clarity Blogs

Introduction - Perfect Management Pack Most construction and engineering businesses don’t fail because they’re unprofitable. They fail because the  board doesn’t see problems early enough . I’ve worked with multiple of £500k–£10m construction and engineering businesses, and the pattern is always the same: The board pack arrives  too late It’s written  for accountants, not directors It shows a  generic P&L and balance sheet It tells you what happened, not  what’s about to go w

Introduction - P erfect Board-Level KPI Dashboard Most boards don’t need  more  numbers. They need  clearer  numbers. In construction and engineering, the biggest risks rarely show up as one dramatic figure. They creep in quietly: revenue looks strong, but margin is leaking job by job cash feels tight, but you can’t see whether it’s  WIP ,  debtors ,  retentions , or  supplier terms  causing the squeeze the team is flat out, yet EBITDA isn’t moving That’s why the best boards

Introduction - Work in Progress (WIP) Improves Cashflow If you run a construction or engineering business, you’ve probably said something like: “We’re busy and the jobs are going well… so why is cash tight?” “We made profit last month… but the bank balance didn’t move.” “We’ve invoiced loads… yet we’re still being squeezed by suppliers.” Most of the time, the missing link is  Work in Progress (WIP) . WIP is not “an accountant’s adjustment”. It’s a simple idea: WIP is the valu

Introduction - Stop Cashflow Crises In construction and engineering, cashflow problems rarely come from one big disaster. They come from  small delays that stack up : a quote that sits in someone’s inbox for a week a job that drags on because of call-backs an invoice that doesn’t go out until “Friday when we get time” credit control that starts at 60+ days (when it’s already too late) The frustrating part? You can be  profitable on paper  and still feel broke. Cashflow isn’t

Should More Resource Go to Volume Work or Technical Work? Introduction - Right Balance Between Productivity and Effectiveness? Fast-growing construction and engineering businesses often hit the same wall: engineers are flat out, but profit doesn’t rise the office feels overloaded, but work still slips directors are dragged into every decision, so nothing moves quickly you’re “busy”… but not in control This usually isn’t a sales problem. It’s a  capacity and focus problem . In

Introduction - KPIs Every Construction Sales Team In construction and engineering businesses, especially lift companies, M&E contractors, FM providers and refurbishment specialists, the sales department is often misunderstood. Many business owners think a “busy pipeline” equals success. It doesn’t. Quality, conversion, lifetime value, and margin protection matter far more than volume. A sales department can generate enquiries all month yet still weaken cash flow, harm margins

Introduction - KPIs for Refurbishment & Installation Teams The refurbishment and installations department is often the most complex area of a construction or engineering business. It handles modernisations, full installations, technical surveying, RAMS programmes, project management, procurement, WIP forecasting, and final commissioning. It also carries the  highest revenue, longest timelines, and biggest commercial risk . And yet, most SMEs track performance poorly. Director

Introduction - KPIs Every Repairs Department Must Track The repairs department is one of the most influential profit centres in a construction or engineering business, especially in lift engineering, M&E, HVAC, and specialist technical trades. Repairs generate reactive revenue, drive additional quoting opportunities, and are often the fastest route to cash. But they can also be the biggest source of margin leakage, scheduling issues, and customer frustration if the business d

Introduction - KPIs Every Service Department Must Track For construction and engineering businesses, especially those running lift engineering, FM service teams, M&E services, or technical maintenance divisions, the  service department is the heartbeat of predictable revenue . It handles call-outs, planned maintenance, aftercare, safety inspections, LOLER reporting, and customer relationships. Yet many SMEs don’t truly know if their service department is performing well beyon

In construction and engineering businesses, department heads play a bigger role than many directors realise. They control the flow of information, influence margins, shape delivery, and directly impact cash flow. Yet most SMEs, especially those scaling quickly, don’t truly know whether their department leads are performing well. This happens because many owners rely on gut feel, verbal updates, or firefighting indicators rather than structured performance metrics. In this blo

Introduction - Data They Need Before Spending In many fast‑growing construction and engineering SMEs, directors and owners approve expenditure on intuition rather than data. Perhaps they trust their team, are pressed for time or rely on outdated processes. Yet uncontrolled spending erodes margins and creates cash‑flow pressures. This blog explores why directors bypass numbers, what information they need to see, and how often they should review it. Approving spend without chec

Introduction - Creating Departmental Accountability In growing construction and engineering firms, budgets are often decided at the top and then communicated to department heads without much discussion. The result? Lack of ownership, overspending and finger‑pointing when numbers go awry. True accountability happens when heads of operations, sales and service understand and own their costs. This blog shows how to gather data, measure performance and create a culture of account

Introduction - Finance Training for Engineering Teams Many construction and engineering firms rely on site managers who excel at operations but struggle to read financial statements. In an industry driven by budgets, cash flow and margin control, that gap is costly. This guide shows how to train a site team to understand numbers in 90 days. The plan is broken down into two‑week tasks and is tailored for a £5 million business where each project manager or foreman needs to conn

Introduction - Financial Leadership Prevents Business Firefighting In the fast‑paced world of construction and engineering, unexpected issues will always arise from delayed supplier deliveries to cost overruns. However, “firefighting” should not be the default mode for your business. Strong financial leadership provides a strategic framework that turns chaos into organised action. This blog explores the top intangible skills a finance leader needs, the red flags they should w

Introduction - Financial Controllers Fail Without Authority Small and medium‑sized construction and engineering firms often view the financial controller as an accounting workhorse. Yet controllers are not magicians; they need authority, information and support to succeed. When business owners delegate  responsibility  without equivalent authority, they set the controller up for failure. In a £5 million construction firm, a controller might be expected to reconcile accounts,

Introduction - Training Non‑Finance Managers Many site managers and project leads in construction and engineering are highly skilled in operations but feel uncomfortable with financial reports. Yet understanding numbers, budgets, margins and cash‑flow, is essential for making informed decisions. This blog provides a step‑by‑step approach to training non‑finance managers, using plain language and tools designed for SMEs. Where Is the Best Place to Start? Begin with the basics:

Introduction - T ax Perks for SME Directors UK tax legislation is full of allowances and reliefs that, when used correctly, can significantly reduce a director’s tax burden. Unfortunately, many construction and engineering directors are unaware of these benefits or assume they’re too complex. In this blog, we highlight five lesser‑known tax benefits, many seasonal or time‑specific, that directors of limited companies can claim. Always check with a qualified advisor for your s

Introduction - Building Internal Controls For construction and engineering SMEs, internal controls can feel like bureaucratic red tape. Business owners fear that adding checks and approvals will slow down projects. However, robust controls are like an immune system for your business. They detect errors, prevent fraud and build stakeholder confidence . This blog explains how to implement controls that protect assets without creating bottlenecks. Are Impactful Implementations D

Introduction - Fractional Controller vs Fractional Finance Director As a growing construction or engineering business, you may hear terms like  fractional controller ,  fractional finance director (FD)  or  fractional CFO  used interchangeably. Understanding the difference is crucial for making the right hiring decision. This blog compares the two roles, explains the business needs that drive each, and offers guidance on when an FC alone is enough. What Tasks and Business Nee

Introduction - What is a Fractional Controller Construction and engineering SMEs often juggle rapid growth with complex projects, making financial oversight both critical and challenging. Owners frequently assume that sophisticated finance roles are only for large corporations, leaving them without the strategic insight they need. This blog explains what a  fractional controller (FC)  is, why it matters for small but growing firms, and how to evaluate whether your business sh