Financial Statements · P&L · Balance Sheet · Cash Flow Statement · Construction
Financial Statements · P&L · Balance Sheet · Cash Flow Statement · Construction Accounting
Construction Financial
Statements Explained.
Three financial statements tell the complete financial story of a construction business. Most subcontractors look at one — the P&L — and ignore the other two. But banks look at all three. Sureties look at all three. And the most important insights about your business's financial health come from how the three interact with each other.
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SPM vs. Other CFO Firms
Most CFO Firms Serving This Trade
- High revenue minimums — most won't serve under $5M
- Advisory only — no bookkeeping, no implementation
- No job costing setup or ControlQore management
- No monthly WIP as standard deliverable
- No pricing published — discovery call required
- No vetted partner network for bonding, lending, or liens
- No prevailing wage specialty
The Construction CFO — SPM
- Serves $1M–$12M — starts at $1,900/month
- Full implementation — bookkeeping, job costing, CFO advisory
- ControlQore setup and managed for you every month
- Monthly WIP standard in Executive tier
- Full pricing published — no discovery call to find out costs
- Vetted partners for bonding, lending, lien services, payroll
- Prevailing wage and Davis-Bacon specialty
What We See in This Business
01
You Only Look at the P&L
The P&L shows whether you made money in a period. The balance sheet shows what you own and owe at a point in time. The cash flow statement shows how cash actually moved. Each answers a different question. A contractor who only reads the P&L is working with one-third of the available information.
02
Your Three Statements Don't Tell a Consistent Story
When the P&L, balance sheet, and cash flow statement are maintained correctly, they reconcile to each other — changes in equity on the balance sheet match net income on the P&L, cash on the balance sheet matches ending cash on the cash flow statement. When they don't reconcile, something is wrong — either in the accounting or in the underlying business. Most subcontractors don't know whether their three statements reconcile.
03
Bankers and Sureties Read All Three Simultaneously
A banker reviewing your credit application and a surety reviewing your bonding application are reading all three statements simultaneously — looking for the story they tell together. A P&L showing profit with a balance sheet showing declining equity and a cash flow statement showing negative operating cash is a story of a business in trouble regardless of what the income number says.
How SPM Fixes It
The P&L — What Happened in a Period
The P&L (income statement) shows revenue, direct costs, gross profit, overhead, and net profit for a specific period — month, quarter, or year. It answers: did the business make money? Key construction metrics: gross profit margin (target 15–25% by trade), overhead rate (target 8–18%), net profit margin (target 5–8%). See our full guide on the construction P&L statement.
The Balance Sheet — What You Own and Owe Right Now
The balance sheet shows assets (what you own), liabilities (what you owe), and equity (the difference) at a specific point in time. It answers: is the business financially healthy? Key construction items: working capital (current assets minus current liabilities — target 10–15% of revenue), current ratio (target above 1.5), equity trend (growing over time means the business is accumulating value).
The Cash Flow Statement — How Cash Actually Moved
The cash flow statement shows cash inflows and outflows from operations, investing, and financing activities for a period. It answers: where did the cash come from and where did it go? The most important section for construction is operating cash flow — positive operating cash flow means the business is generating cash from its core operations. Negative operating cash flow means the business is consuming cash to operate, which is unsustainable regardless of what the P&L shows.
Service Tiers
Tier 01
Core Financial
Starts at $1,900 / month
- ControlQore setup and management
- Job costing aligned to your estimate structure
- Cost-to-complete tracking — updated monthly
- Full-service bookkeeping — minimum 30 min/week
- Vendor payments via ACH (you approve, we initiate)
- Accounts receivable management
- Bank reconciliations and transaction matching
- Controllership
- 1 monthly CFO meeting
- 60-day onboarding — books migrated to last taxable year
Most Popular
Tier 02
Executive Financial
Starts at $2,900 / month
- Everything in Core Financial
- Monthly WIP schedule — delivered every month, standard
- 13-week cash flow forecasting
- CEO Report — monthly financial dashboard
- 3 CFO advisory meetings per month
- Strategic accountability and actionable to-dos
- Direct access to Josh Luebker
Pricing by Revenue
Revenue Range
(Last 12 Months) |
Core Financial
Monthly |
Executive Financial
Monthly |
| Under $1M | $1,900 | $2,900 |
| $1M – $3M | $2,600 | $3,600 |
| $4M – $6M | $3,800 | $5,500 |
| $7M – $9M | $5,100 | $6,900 |
| $10M – $12M | $6,100 | $8,500 |
| $13M+ | Quoted | Quoted |
Vetted Partner Network
National Lien Services
When AR gets too long, we connect you directly to our lien services partner to protect what you've earned.
Additional cost — not included in monthly fee
Payroll Integration Partners
Prevailing wage and regular payroll software partners integrated directly with ControlQore job costing.
Additional cost — not included in monthly fee
Bonding Partners
Surety relationships and bonding capacity support. We prepare the financials — our partners get you bonded.
Additional cost — not included in monthly fee
Lending Partners
Working capital lines and equipment financing through vetted lenders who understand construction.
Additional cost — not included in monthly fee
Reviewed Financials
CPA-level financial statement reviews for banking, bonding, and large contract requirements.
Additional cost — not included in monthly fee
CPA Coordination
We work alongside your existing CPA — not replacing them. Clean books and job costing make tax time easier.
Included — no extra cost
Common Questions
Straight answers.
Which financial statement is most important for bonding?
The balance sheet is most important for bonding — specifically working capital, current ratio, equity position, and the WIP schedule that supplements it. The P&L is secondary — showing revenue trend and profitability. The cash flow statement rounds out the picture by showing whether the business generates its own cash or depends on financing. Sureties read all three but the balance sheet drives the bonding capacity calculation.
How often should I review all three financial statements?
Monthly. SPM produces all three financial statements monthly for every client — P&L, balance sheet, and cash flow statement — maintained in %s. Monthly review turns financial statements from an annual tax document into a real-time management tool. The trends matter more than any single month's numbers.
What's included in Core Financial?
ControlQore setup, job costing aligned to your estimates, cost-to-complete tracking, full bookkeeping (minimum 30 min/week), ACH vendor payments (you approve, we initiate), AR management, bank reconciliations, transaction matching, controllership, and 1 monthly CFO meeting. Starts at $1,900/month.
What does Executive Financial add?
Everything in Core plus monthly WIP schedule, 13-week cash flow forecasting, CEO Report, and 3 CFO advisory meetings per month. Starts at $2,900/month. WIP, cash flow forecasting, and the CEO Report are Executive tier only.
Do you handle payroll?
No. We have vetted payroll software partners — including prevailing wage integrations — that connect directly with ControlQore. Those are separate engagements at additional cost.
How long does onboarding take?
60 days. We migrate your books to the start of your last taxable year, set up ControlQore, and build your job costing structure. Fully operational in two months.
What software do clients use?
ControlQore. All SPM clients run on ControlQore for job costing and WIP. We set it up and manage it — you don't have to learn it. Clients switching from QuickBooks, Sage, or other platforms migrate during onboarding.
Do you work alongside our CPA?
Yes. We work alongside your existing CPA — not replacing them. Clean books and accurate job costing make their job easier at tax time.
What happens when we grow past $12M?
We have a clear graduation path. We prepare your financials, systems, and team for the transition and connect you with the right firm for your next stage of growth.