In the construction world, there’s no shortage of big decisions—what jobs to pursue, when to hire, whether to buy equipment, and how fast to grow.

But many contractors make these calls based on gut feel, not financial facts. That can work for a while—but if you’re serious about long-term success, it’s time to put your numbers to work.

Here’s how contractors can start using financial data to drive smarter, more strategic decisions.

Step 1: Know Your Financial Foundation

Let’s start with the basics. To make strategic decisions, you need three core financial statements:

• Balance Sheet – Shows the financial strength of your business (assets, liabilities, and equity).
• Income Statement (P&L) – Shows your profitability over time.
• Work-in-Progress (WIP) Report – Ties your jobs to your financials using percent-complete accounting.

Without these three, you’re flying blind. With them, you can clearly see where your business stands—and where it’s headed.

Step 2: Track Key Metrics That Actually Matter

Financial statements are full of numbers, but not all of them are decision-ready.

Here are a few construction-specific metrics that help you make better calls:

• Current Ratio – Can you pay your bills? (Current assets ÷ current liabilities)
• Backlog to Goal Ratio – Are you booked far enough ahead to hit your revenue goals?
• Gross Profit per Job – Which jobs (or types of work) are most profitable?
• Overhead Coverage – How much revenue do you need to cover fixed costs?
• Under/Overbillings – Are your jobs ahead or behind financially?

These numbers tell you more than “how you did.” They show how you’re doing—and what you might need to change.

Step 3: Use Projections to See the Road Ahead

This is where contractors often fall short. You’re busy looking at what happened last month—but what about three months from now?

Enter financial projections. By combining your current financials, backlog, and budgeted overhead, you can:

• See if you’re on pace to meet year-end goals
• Anticipate dips in revenue or cash flow
• Plan for hiring or equipment purchases with confidence
• Adjust sales or estimating goals to stay on track
• Strategize bonus or tax planning with better timing

Projections turn “We’ll see how it goes” into “Here’s what we’re expecting.”

They help you make proactive decisions, not reactive ones.

Common Strategic Decisions That Should Be Backed by Data

Here are just a few examples of decisions that become easier (and smarter) when backed by financial insight:

When your numbers are clean and connected to your strategy, the right choice becomes clearer.

What If You Don’t Have the Right Data?

You’re not alone.

Many contractors struggle to use their financials strategically because:

• Their books are inaccurate or incomplete
• WIP reports aren’t consistent or tied to the accounting system
• They rely on software that’s not built for construction
• They don’t get monthly reports—just year-end financials
• Their accounting team isn’t trained in percent-complete accounting

If that’s you, the first step is to clean up your financial systems. The second is to learn how to interpret the data so it helps—not hinders—your decision-making.

How Atlas CFO Can Help

We’ve helped hundreds of construction contractors clean up their reporting, implement projections, and make better business decisions with confidence.

We offer:

• Financial Systems Rebuilds – Clean up and build the systems you need.
• Virtual CFO Services – Ongoing analysis, projections, and strategic support.
• Atlas Growth Model™ – Our proprietary forecasting and KPI tool, built for construction.

We help you move from “I think we’re okay” to “Here’s where we’re going—and how to get there.”

Final Thought

Great contractors build more than projects—they build great businesses.

And that starts by turning your financial data into your most powerful tool for decision-making.

Need help getting started? We’re here when you’re ready.