Management Accounting & Reporting

Introduction - Overheads Feel “Too High” Many construction and engineering business owners believe their overheads are out of control. Rent feels expensive, management salaries look heavy, and fixed costs seem to rise every year. The instinctive response is to cut costs, delay hiring, or strip back investment. At Jones Financial Accounts (JFA), we regularly find that overheads are not actually the problem. In most construction and engineering businesses, overheads  feel  too

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 - The Hidden Cost of Poor Job Data In construction and engineering businesses, job data is often treated as an administrative inconvenience rather than a commercial priority. Missing job references, vague cost descriptions, and incomplete timesheets are brushed aside with,  “We’ll tidy it up later.” At Jones Financial Accounts (JFA), we see this mindset quietly costing businesses serious money. Poor job data does not just create messy reports, it actively drives

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 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 Many construction and engineering businesses believe their financial problems come from rising costs, tight margins, or difficult customers. In reality, one of the biggest causes of poor financial decisions is far more basic:  disconnected systems . At  Jones Financial Accounts (JFA) , we regularly see SMEs with good people, strong demand, and solid experience, yet their numbers cannot be trusted. Job systems don’t match the accounts, invoices sit in drafts, cost

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 For many growing construction and engineering businesses, finance is something reviewed  when something goes wrong . Cash feels tight, margins look thinner than expected, or targets are missed with no clear explanation. By the time directors ask questions, the damage is already done. At  Jones Financial Accounts (JFA) , we work with SMEs across construction and engineering that have grown quickly past £500k turnover and suddenly feel out of control financially. O

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 - 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 - 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