Mastery
Fractional CFO Services
Construction Company CFO Case Study
This Canadian construction company had experienced years of inconsistent profitability. The owner worked long hours but lacked timely, reliable financial information to guide decisions and build more consistent results.
Mastery began working with the business in late 2021, helping strengthen financial systems, improve pricing, forecast cash flow, and connect growth plans with financial performance.
Net profit increased by over 700% in 2022 compared with 2021, followed by a further 75% increase in 2023 compared with 2022. The work also helped the owner delegate responsibilities and evaluate opportunities to grow without immediately adding fixed costs.
The Challenge: Inconsistent Profits and Limited Financial Visibility
The business had been operating for many years, with some profitable years and others ending in losses. The owner wanted stronger, more consistent returns for the time and effort he was putting into the company.
An executive assistant handled bookkeeping, and an external accountant prepared annual corporate tax filings. However, the financial records contained inaccuracies and were not consistently up to date, limiting their usefulness for management decisions.
The owner needed reliable financial information throughout the year, a clearer understanding of profitability, and a forward-looking plan for cash flow and growth.
How Mastery Supported Profitable Growth
Reliable Financial Information and Clear Responsibilities
Mastery helped move the business to a cloud-based accounting platform and trained staff to maintain accurate, timely records. We also clarified responsibilities and the information needed from operations, helping the owner delegate work while maintaining financial visibility.
Budgets, Forecasts, and Performance Reviews
We developed financial dashboards and forward-looking cash flow forecasts, then reviewed performance with the owner and key team members. This connected day-to-day decisions with profitability, cash requirements, and the company’s growth plans.
Better Pricing and Job Selection
Working with the company’s technology advisor, we helped develop a pricing tool staff could use to prepare job estimates. Analysis also supported minimum charges for smaller jobs, accounting for travel, setup, and cleanup costs that simple per-square-foot pricing could overlook. Regular pricing reviews and greater attention to higher-margin work helped sharpen the company’s approach.
Growth Without Immediately Adding Fixed Costs
The owner considered a larger facility, new equipment, and additional employees. For 2024, budgeting and financial forecasts supported prioritizing opportunities within the existing operation before committing to those investments. The plan focused on pricing, installation productivity, and inventory management to increase revenue and profitability while controlling fixed costs.
Results: Stronger Profits and Performance Ahead of Plan
Annual Profit Growth
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2022: Net profit increased by over 700% compared with 2021.
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2023: Net profit increased by a further 75% compared with 2022, despite an increase in the owner’s salary.
Performance Against the 2024 Plan
As of June 30, 2024, the company reported:
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Revenue 3% above target.
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Gross profit 16.8% above target.
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Net profit 25% above target.
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Cash flow consistently ahead of plan.
Alongside these financial results, clearer responsibilities and staff training helped the owner spend more time on higher-value leadership activities. Budgets, forecasts, and regular performance reviews provided a more structured basis for decisions.
Discuss Your Construction Business With a CFO
If your construction or trades business needs clearer financial information, stronger cash flow planning, or a financial roadmap for growth, Mastery can help.
We provide fractional CFO leadership to construction and trades companies across Canada, working alongside owners, bookkeepers, accountants, and operational teams.
Book a free 45-minute consultation to discuss your business, your priorities, and whether Mastery is the right fit.