Training Non‑Finance Managers: A Beginner’s Guide for Construction SMEs

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: introduce the three main financial statements, income statement, balance sheet and cash‑flow statement. Explain that:

• The income statement shows revenue, costs and profit over a period.

• The balance sheet lists what the business owns (assets) and owes (liabilities) at a given date.

• The cash‑flow statement tracks cash moving in and out, highlighting liquidity.

For managers unfamiliar with finance, emphasise why cash‑flow matters more than paper profits.

Tasks to Undertake First

1. Learn Key Ratios: Introduce simple ratios such as gross margin, net margin, current ratio and quick ratio. Use practical examples from projects, e.g., what percentage of a contract value becomes profit.

   
   

2. Use Reporting Templates: Provide managers with user‑friendly templates. JFA’s Job/Project Profitability Tracker and Absorption Costing Calculator (download from resources) help visualise labour and material costs.

   
   

3. Hands‑On Budgeting: Assign managers responsibility for a small departmental budget so they learn to track spend versus budget.

   
   

4. Review Monthly Reports Together: Sit down with the fractional controller or FD to go through variances; encourage questions and keep jargon to a minimum.

   
   

5. Set Clear Goals: Link financial metrics to operational KPIs, e.g., achieving a 20% gross margin on a project.

   
   

Beginner Reports to Start With

• Budget vs Actual: Shows how project spend compares to the budget. Encourage managers to explain variances and propose corrective actions.

• Aged Debtor Report: Lists outstanding invoices by client; helps managers follow up on overdue amounts.

• Cash‑Flow Forecast: A weekly or monthly forecast helps identify upcoming cash shortages. JFA’s 13‑Week Cashflow Forecast Template makes this simple.

  
  

Communication Tips for Trainers

Research suggests that explaining numbers effectively requires empathy, storytelling and relevance. Consider these techniques:

• Have empathy: Recognise that non‑financial managers may have never been taught finance. Create a safe environment where questions are encouraged.

  
  

• Tell a story: Use narratives and visuals rather than spreadsheets alone. Summarise key points in clear tables or charts.

  
  

• Adjust to the audience: Tailor content to the manager’s role. A site supervisor cares about material costs and labour hours, while a project manager may be concerned with overall profitability.

  
  

• Keep it relevant and concise: Focus on numbers that impact their decisions; avoid overwhelming them with detail.

  
  

• Use visuals: Charts and dashboards make complex information easy to digest.

  
  

• Build confidence: Encourage managers to take ownership of their budgets and ask for help when needed.

  
  

How Long Does Training Take Until They Are Autonomous?

The timeline varies depending on the complexity of the business and the manager’s starting point. For most non‑finance managers, a structured training programme over three to six months is sufficient. Start with monthly sessions, gradually increasing responsibility.

Within six months, managers should be able to interpret basic reports, control their budgets and contribute to forecasting.

Ongoing coaching from your fractional controller or FD ensures skills are reinforced and adapted as the business grows.

Need to Review

1. Training goals: What do you want your managers to be able to do with numbers?

2. Learning styles: Do they prefer hands‑on practice, visuals or written guides?

3. Resources: Provide access to JFA’s templates, such as the 13‑Week Cashflow Forecast and Absorption Costing Calculator.

4. Progress checks: Set milestones, e.g., after two months, managers should explain gross margin; after four months, prepare simple budgets.

   
   

Strategy – Practical Steps

1. Set up a Finance 101 workshop: Introduce basic concepts.

2. Assign mentors: Pair managers with your FC or FD for monthly review sessions.

3. Use real data: Encourage managers to work with their own project figures to make learning relevant.

4. Implement dashboards: Provide visual dashboards showing project profitability, cash‑flow and KPIs. Use colours to indicate performance.

5. Encourage cross‑department collaboration: Involve finance in site meetings and encourage managers to share financial insights with peers.

   
   

Key Takeaways

• Start by explaining the three key financial statements and simple ratios.

• Use templates and real project data to make training practical.

• Apply communication best practices: empathy, storytelling, relevance and visuals.

• Most managers can become autonomous in finance basics within three to six months with regular mentoring.

Giving non‑finance managers the confidence to understand numbers strengthens your entire business. With JFA’s free templates and supportive finance experts, your site managers will soon be speaking the same language as your accountants. For more context on how operational bottlenecks can hinder profitability, read our blog on the real reason bottlenecks happen.

Wrapping up today's insights, tomorrow we simplify another accounting challenge.