Cash Flow, Profit & Forecasting

Introduction - Service Departments Rarely Make Money In many construction and engineering businesses, the service department is seen as a problem area. It rarely shows strong margins, often breaks even at best, and sometimes appears to lose money altogether. Directors naturally ask whether the service function should be cut back, restructured, or pushed to “make more profit.” At Jones Financial Accounts (JFA), we regularly explain that this thinking misses the point. In most

Introduction - Business Isn’t Unprofitable One of the most common statements we hear from construction and engineering business owners is,  “The business just isn’t making money.”  Margins feel tight, cash flow is under pressure, and year-end results are disappointing. At Jones Financial Accounts (JFA), we rarely find that the business itself is unprofitable. More often, the problem sits at job level. Profitable jobs are masking loss-making ones, and the overall picture hides

Introduction - Consistency Beats Strategy When engineering and construction businesses start to struggle, the instinct is often to look for a new strategy. Directors talk about repositioning, new services, new markets, or growth plans. Strategy sessions are booked, and big ideas are discussed. At Jones Financial Accounts (JFA), we regularly see a different reality. Most struggling engineering businesses do not have a strategy problem, they have a consistency problem. The basi

Introduction - When You Don’t Control the Inputs Most construction and engineering businesses set revenue targets with good intentions. The board agrees a growth number, sales teams are pushed to deliver it, and operations are expected to “make it work.” When targets are missed, the conversation usually turns to poor sales performance or market conditions. At Jones Financial Accounts (JFA), we consistently see a different root cause. Revenue targets fail because the inputs th

Introduction When profits are under pressure, the instinctive response for many construction and engineering businesses is simple:  sell more work . Win more contracts. Push harder on sales. Stay busy. At  Jones Financial Accounts (JFA) , we see this approach backfire time and again. Businesses grow turnover, teams get stretched, and directors work harder, yet profitability does not improve. In some cases, it gets worse. This blog explains  why profitability within 12 months

Introduction One of the most common blind spots we see in growing construction and engineering businesses is this:  the part of the business generating the most revenue often receives the least financial scrutiny . At  Jones Financial Accounts (JFA) , we regularly work with SMEs where one department, service line, or contract type drives 40–70% of turnover. It is busy, stretched, and seen as “the engine of the business.” Because of that, it is often left alone to keep momentu

Introduction At  Jones Financial Accounts (JFA) , we regularly work with SMEs turning over £500k to £5m+ that are busy, winning work, and delivering projects, yet cash always feels behind. One of the fastest improvements we make is tightening invoicing discipline. This blog explains  why faster invoicing is one of the easiest ways to improve cash flow , why delays damage forecasting and supplier confidence, and how setting clear timelines restores control. It also explains wh

Introduction Late payments are one of the most common complaints we hear from construction and engineering business owners. Customers pay late. Cash feels tight. Directors assume it’s just part of the industry. At  Jones Financial Accounts (JFA) , we see this differently. In most cases,  late payments are not a customer problem or a cash flow problem, they’re a process problem . When invoicing, ownership, and follow-up are unclear, cash gets stuck. When processes are tight, t

Introduction One of the most common reasons we see at  Jones Financial Accounts (JFA)  is not bad sales or poor pricing, but  unresolved invoice disputes quietly sitting in the background. A disputed invoice might feel small at first. A query over hours, a variation not agreed, or a missing purchase order. But when disputes are not actively managed, they age, stall cash flow, and slowly damage supplier confidence and operational stability. This blog explains  why unresolved i

Introduction One of the biggest myths in growing construction and engineering businesses is that profit problems are caused by poor sales. In reality, we see the opposite far more often. Sales grow, work is busy, teams are stretched, yet profit quietly falls behind expectations. At  Jones Financial Accounts (JFA) , this usually points to one core issue:  managers are not accountable to the numbers . When budgets, margins, and costs do not clearly belong to anyone, inefficienc

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

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 - 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 - 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 - Price Sales Commission Correctly for Contract Wins Getting sales commission right is more than choosing a percentage. For construction and engineering SMEs, where contracts vary in length, complexity, margin and lifetime value, poorly calculated commission can wipe out profit before the job even starts.In this blog, we break down how to price sales commission correctly, how to calculate customer lifetime value, and which KPIs protect your margins. This is esse

Running a construction or engineering business means managing constant uncertainty, material prices, labour rates, project delays, and client payment terms. Yet, too many companies rely on “best-case” budgets and hope for the best. That’s where  sensitivity analysis  comes in. It’s one of the most powerful (but underused) tools for construction SMEs. It helps you see how changes in key assumptions, like a 10% material price increase or delayed stage payment, will affect your

Introduction - 5 Finance Tools Lift engineering businesses move fast: call-outs, PPM contracts, installs, subcontractors, vans, parts, and a blizzard of invoices, receipts and payments. If your systems don’t talk to each other, cash slows and margins drift. At  Jones Financial Accounts (JFA) , we help construction and engineering SMEs build smart finance stacks that connect field, finance and banking, so data flows from  receipt → bill → approval → payment → board KPIs  with