Running a successful construction business isn’t just about delivering high-quality builds—it’s about managing money just as well as materials. For many builders, financial oversight often starts as an afterthought, with bookkeeping handled in-house or even as a side task by the owner. But as businesses grow, so do financial complexities, and having the right financial leadership can make or break profitability.

In our latest episode of Builders, Budgets & Beers, we sat down with Mark Phillips, CFO of V Fine Homes and Blue Quail Homes, to discuss the crucial differences between bookkeepers, controllers, and CFOs, and how financial leadership helps construction companies avoid cash flow pitfalls and run more efficiently.

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Bookkeeper, Controller, or CFO? Understanding the Financial Roles in Construction

Most builders are familiar with bookkeepers—they track expenses, categorize costs, and handle basic accounting tasks. But as Mark explains, a strong financial team requires different levels of expertise depending on the size and complexity of the business.

• Bookkeeper: Responsible for data entry, invoice processing, reconciliations, and general financial record-keeping. Often the first financial hire for a growing business.
• Controller: Oversees financial accuracy, manages cash flow, and ensures financial compliance. They typically act as the “quality control” layer between bookkeepers and leadership.
• CFO (Chief Financial Officer): Focuses on long-term financial strategy, profit optimization, and growth planning. A CFO doesn’t just track numbers—they use financial data to drive business decisions.

Mark himself transitioned from a controller into a CFO role, and he shares how his background in banking and finance helped him implement stronger financial controls at V Fine Homes. He also discusses how many builders mistakenly assume they need a CFO only when they hit a certain revenue milestone.

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"It’s not about hitting $5M, $10M, or $15M in revenue—it’s about when your business needs stronger financial oversight," Mark explains. "If cash flow feels tight, bills are falling through the cracks, or you’re not sure how much money you’re actually making per job, it’s time to level up your financial leadership."

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The Hidden Dangers of Poor Financial Oversight

Many builders underestimate just how quickly financial mismanagement can spiral into major business issues. Mark shares a story about when he first joined V Fine Homes—one of the biggest financial headaches they had wasn’t bad projects or lost revenue, but simply checks sitting in a drawer, uncashed.

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"It wasn’t that the company was unprofitable," he says. "It was just that financial processes weren’t being managed tightly. The money was there, but it wasn’t moving the way it needed to. That’s where having a controller or CFO makes all the difference."

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Without a strong financial leader, common issues like these can pop up:

• Missed or delayed client payments leading to cash flow crunches.
• Inaccurate job costing, resulting in unexpected losses on projects.
• Over-reliance on lines of credit, which can cripple profitability over time.
• Missed financial opportunities, like adjusting pricing or cutting waste.

One of the biggest wins Mark brought to the table at V Fine Homes was implementing a better billing structure. Many builders work on cost-plus or progress-based billing, but don’t set up their deposit structures correctly.

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"We started requiring larger deposits from clients, but instead of refunding them throughout the project, we applied them at the end," Mark explains. "That simple change significantly improved our working capital and made cash flow more predictable."

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How Construction Companies Can Improve Their Financial Oversight

For builders wondering when and how to bring in financial leadership, Mark shares a simple rule of thumb:

If you’re spending more time worrying about finances than actually running your business, you need a controller or CFO.

Here’s what he suggests for companies looking to improve their financial management:

1️⃣ Start with Strong Bookkeeping

Having clean books isn’t just for tax season—it’s the foundation of every financial decision a business makes. If bookkeeping is inconsistent, upgrading to a dedicated bookkeeper or bookkeeping software like Adaptive can immediately improve financial visibility.

2️⃣ Consider Hiring or Training a Controller

If financial accuracy and cash flow are becoming a pain point, a controller can take that burden off the owner’s plate. They’ll monitor financials daily, review draw schedules, and help avoid costly mistakes. Many companies promote a skilled bookkeeper into a controller role.

3️⃣ Use Technology to Streamline Finances

With AI-powered tools like Adaptive, financial management doesn’t have to be manual and time-consuming. Mark notes that switching to Adaptive has saved their company hours each week, reducing errors and improving cash flow tracking.

4️⃣ Regularly Review Financial Health

Even if a CFO isn’t on staff yet, builders should still sit down regularly to review their numbers. Mark recommends monthly P&L reviews, cash flow forecasting, and job cost analyses to ensure that projects stay profitable and financial risks are minimized.

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Key Takeaway: Your Business Needs More Than Just Great Builds—It Needs Financial Clarity

Construction isn’t just about blueprints and job sites—it’s a business. And like any business, financial health determines long-term success. Whether you’re just starting out or managing multi-million dollar projects, having the right financial leadership—whether it’s a bookkeeper, controller, or CFO—can mean the difference between surviving and thriving.

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If you’re ready to take control of your construction finances and get more clarity on your numbers, listen to the full episode now.

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