What Happens When No One Checks Your Numbers?

I’ll never forget the day a construction company called me out of frustration with their current CPA. They told me, “We just don’t feel like we’re getting the answers we need.” That’s a tough spot for any business owner to be in. They had a feeling something wasn’t right, but they couldn’t quite put their finger on it.

So I went out to meet with them and spent some time reviewing their books. It didn’t take long to spot the problem. I asked, “Why haven’t you adjusted your labor rates and burn rates?” They looked at me a bit confused.

They explained that their worker’s compensation insurance premiums had tripled over the past year. Yet they hadn’t changed their project rates to account for the additional costs. I told them flat out, “You’re losing money on every job.”

They were shocked. One of the owners asked, “Why didn’t our old CPA catch this?” I couldn’t answer that, but I said, “I assume that’s why you called me.”

From there, what started as a routine CPA engagement quickly turned into much more. I began going to their office weekly to help stabilize the situation. They had two or three employees in their accounting department entering invoices, bills, and project costs. But no one had been connecting the dots to see how the numbers were trending.

We sat down together and reviewed every project. One day, I remember telling one of the owners, “You’re going to lose money on this particular job.” He looked at me like I was crazy. “How can you tell? We just started it.” I walked him through the costs, the overruns, and the timeline assumptions. Sure enough, they ended up losing money on that job.

This experience taught me something I’ve seen over and over: small businesses often have the data they need, but no one is analyzing it effectively.

That’s how I ended up stepping into a fractional CFO role for them. I didn’t set out to do that. But the business needed someone who could help them understand what was actually happening financially—not just someone to prepare the tax returns at the end of the year.

We got their projects under control, set up stronger internal processes, and even worked with banks to help secure additional financing to keep things running smoothly. It wasn’t easy, but we stabilized the company.

This situation highlights why having someone actively watching your numbers matters. Bookkeepers enter data. CPAs report on it after the fact. But no one had been in the middle looking at trends, spotting potential problems, or asking hard questions before it was too late.

I always tell my clients: “You don’t want the first time you realize you’re losing money on a job to be when the job is finished.”

A fractional CFO can provide that in-between analysis. Someone to step in, look at the bigger picture, and give you a warning signal when something’s not adding up.

In this case, the owners were able to course-correct. We adjusted pricing, tightened up job costing, and helped them get back on track. Eventually, they grew to the point where they brought in a full-time CFO, and I stepped back into a more traditional advisory role.

The lesson for any business owner is this: don’t assume that just because the books are being kept, the numbers are being checked. Sometimes you need someone to sit down with you and ask, “Does this make sense?”

I’m a big believer that business owners should understand their numbers, even if they’re not handling them personally. You don’t have to be the person inputting data, but you do need to know how to read the story your numbers are telling you.

If you’ve ever felt like something just isn’t adding up—or you’ve had that gut feeling that you’re working harder but not seeing the profits—it might be time to get a fresh set of eyes on your financials.

I’ve had these conversations with plenty of business owners over the years. Sometimes we catch small issues early. Other times, like in this case, it’s a bigger problem that needs to be solved fast.

If you want to talk about how a second opinion or an outside analysis might help your business, I’m always open to a conversation.

To learn more about how I help businesses catch problems before they become disasters, visit https://nealgroup.net.