Most Contractors Are Guessing. Here’s How to Fix It w/ Natalia Zacharin

Many contractors think they know their numbers, but most are just guessing. They rely on outdated bookkeeping, miscategorized expenses, and gut feelings instead of real data.

In this episode of the Construction Champions Podcast, Natalia Zacharin explains how proper financial reporting, accurate job costing, and fractional CFO support can change the way contractors make decisions and why it’s essential to stop guessing and start growing.

1. Outdated Bookkeeping Is Costing You

The Problem:

Most contractors run their books the same way they did when they were a one-person crew. As the business grows, those systems break.

The Fix:

Clean up your chart of accounts and categorize expenses properly
Use bookkeeping software designed for construction (not generic platforms)
Reconcile monthly and keep everything updated

Pro Tip: Accurate books are the foundation of smart decision-making. If you’re behind, you’re blind.

2. Know Your True Job Costs

The Problem:

Without proper job costing, contractors don’t know which projects make money and which ones drain profits.

The Fix:

Track every expense labor, materials, subs, equipment to the specific job
Include indirect costs (like admin time) to get a true picture
Compare estimated vs. actual costs and adjust your bids accordingly

Pro Tip: Gut instinct doesn’t scale. Data does.

3. Use Financial Reports to Drive Growth

The Problem:

Many contractors only look at profit and loss, and even then, only at tax time.

The Fix:

Review key financial reports monthly: P&L, balance sheet, cash flow
Use reports to track trends and plan ahead, not just report the past
Monitor gross profit margins by job to improve pricing and production

Pro Tip: You can’t grow what you don’t measure. Financial reports are your scoreboard.

4. Forecasting Cash Flow is Non-Negotiable

The Problem:

Contractors often run into cash crunches because they don’t project expenses vs. income over time.

The Fix:

Use a rolling 3-6 month cash flow forecast
Factor in project timelines, payment schedules, and upcoming bills
Plan for slow seasons and scale your team accordingly

Pro Tip: Cash is not profit. Forecasting keeps you out of trouble and ahead of growth.

5. Consider Fractional CFO Support

The Problem:

Most contractors can’t afford a full-time CFO, but they still need strategic financial advice.

The Fix:

Hire a fractional CFO or advisor who understands construction
Get help with budgeting, pricing strategy, and growth planning
Use their insights to fix broken systems and make data-backed decisions

Pro Tip: You don’t need to do it alone. A fractional CFO gives you high-level support without the full-time cost.

Final Thoughts: Know Your Numbers, Stop Guessing

Your business can’t grow if you’re constantly guessing. By cleaning up your books, tracking job costs, using reports, and forecasting cash flow, you’ll make better decisions and build a more profitable company.

Watch the full episode here