Josh Luebker
Fractional CFO · The Construction CFO
Former commercial construction PM and master electrician. Managed 150+ projects totaling $300M+. Now fractional CFO for subcontractors doing $1M–$12M through Sulphur Prairie Management. About Josh →
A accountant and a construction CFO are complementary roles. Here is what each covers, what neither covers alone, and why most contractors at $1M–$12M need the CFO function.
An accountant (CPA) prepares financial statements, files taxes, and ensures compliance. They look backward at what happened last period, last quarter, last year. Most construction subcontractors have a CPA. Many need the CFO function and do not have it.
Your accountant can produce an accurate SG&A total on the P&L. They cannot tell you that the overhead rate in your bids is 7 points below that SG&A total — or fix it. A 7-point gap on $5M in revenue is $350,000 per year in underpriced margin. The accountant records the loss accurately. The CFO identifies it and corrects the bid model.
Your accountant will accurately record the loss when the job closes. They cannot see it coming in week three when actual labor cost per unit exceeds estimated labor cost by 25% — and there is still time to adjust. Job costing mid-job is a CFO function. It requires understanding how the work was estimated and how actual performance compares to that estimate in real time.
The accountant records the line of credit draw when it happens. They did not build the 13-week forecast that would have shown the cash gap 8 weeks before it required the LOC draw — when there was time to front-load the SOV on a new contract, accelerate a pay app, or collect outstanding AR instead. Forward-looking cash management is the CFO layer.
The accountant ages AR correctly and reports the 60+ day balance on the balance sheet. They do not call GCs on Monday morning. The AR audit and weekly collections process is a CFO function — and on most construction clients, the first 30-day AR collection covers several months of SPM fees.
This contractor had a CPA for tax preparation and accurate financial statements. Nobody was managing job costing, overhead rate, or billing timing. The CPA's P&L showed 19% blended gross margin. The CFO analysis showed new construction at 28% and service work at 11% — two completely different business lines invisible in the blended number.
In the first 30 days — money the CPA's financial statements showed accurately as a receivable, but nobody was collecting.
After per-call overhead calculation, T&M billing restructured to 48-hour invoicing, and material markup applied. The accountant produced accurate records of both the 11% and the 38%. The CFO found the gap and fixed it.
A free call with Josh takes 30 minutes. Bring your last P&L and current bank balance.
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