Understanding Construction Accounting Roles: Office Manager, Bookkeeper, Controller, and CFO
Paramita Bhattacharya MBA, MSA
I help commercial contractors with internal financial accounting and controller services to get their financials ready for surety bonding
In the early stages of a construction business, the owner often manages financial tasks themselves—tracking accounts receivable (A/R) and payable (A/P), overseeing payroll, and maintaining financial records. However, as the company and its projects expand, financial decision-making becomes too complex for one person to handle alone. This raises an important question: Should you hire an office manager, bookkeeper, controller, or CFO? And what sets them apart?
Growth of a Contractor’s Accounting Department
A typical construction company often begins with a single person—let’s call him Bob, the founder. For months or even years, Bob manages all financial tasks himself, from cash flow management and securing credit lines to chasing invoices—all recorded in an Excel spreadsheet.
As business picks up, Bob finds himself too busy to take on new projects. He hires Sam, a friend-of-a-friend, as an office manager. Sam takes care of administrative tasks, including organizing financial records. Over time, as financial complexities increase, Sam realizes he needs help.
Enter Sally, a part-time bookkeeper. She transitions the company’s records from spreadsheets to QuickBooks. As the company’s revenue grows and accounts receivable hit six figures, Sally becomes a full-time bookkeeper. Soon, she struggles to manage everything alone, leading to the hiring of Stephanie, a controller, who ensures financial operations run smoothly as the company expands into multiple states.
Determining when your construction business needs each role depends on various factors, including company size and financial complexity. Below is an overview of the key responsibilities for each position and how they can enhance financial management.
Office Manager: The Organizer of Daily Operations
Office managers play a critical role, especially in small to mid-sized construction companies, handling a variety of responsibilities—often without specialized training.
Key Responsibilities:
A significant yet often overlooked duty of an office manager is managing lien rights. They ensure the company gets paid on time by tracking notice deadlines, sending invoice reminders, and filing mechanics liens when necessary. They also oversee crucial documents such as job sheets, accounting statements, and lien waivers.
?? Average Salary: $47,548 per year ?? Ideal for Companies With: $200,000 – $1M in annual revenue
Bookkeeper: Keeping Financial Records in Check
A bookkeeper primarily manages the day-to-day financial transactions of a construction business. In smaller companies, they may handle only specific tasks, such as accounts payable, while in larger ones, they may be responsible for full financial reporting.
Key Responsibilities:
Accuracy is crucial for a bookkeeper, as they ensure financial records are reliable. However, for advanced financial structuring or tax strategy planning, a CFO may be necessary.
?? Average Salary: $37,107 per year ($17.84 per hour) ?? Ideal for Companies With: $1M – $5M in annual revenue
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Controller: The Financial Strategist
A controller leads the accounting department, setting up financial structures and ensuring smooth operations. In small companies, they may also handle bookkeeping, while in larger ones, they oversee accounting staff and financial reporting.
Key Responsibilities:
For construction firms, a controller plays a pivotal role in analyzing financial data to determine whether the company can take on new projects. They also manage job-cost accounting, audits, and compliance with financial regulations.
?? Average Salary: $92,250 per year ($47.31 per hour) ?? Ideal for Companies With: $5M – $20M in annual revenue
CFO: The Financial Visionary
A Chief Financial Officer (CFO) is typically necessary for large construction companies, responsible for developing and implementing financial strategies. They work closely with the CEO to manage the company’s financial structure and long-term sustainability.
Key Responsibilities:
A CFO ensures that the business remains financially viable by securing funding, negotiating debt, and monitoring cash flow. Their strategic insights help guide overall business growth and long-term profitability.
?? Average Salary: $133,448 per year ($64.16 per hour)?? Ideal for Companies With: $20M+ in annual revenue
Choosing the Right Role for Your Construction Business
As a construction company grows, its accounting needs evolve. Initially, an owner or office manager may handle finances. However, hiring a bookkeeper can free up valuable time for other business operations. As revenue increases, a controller can enhance financial oversight, ensuring accuracy, compliance, and better forecasting.
For large-scale construction businesses, a CFO becomes essential to manage complex financial structures, guide investments, and drive growth strategies. While major firms may have full-time financial teams, small-to-midsized businesses can benefit from part-time financial professionals or outsourced accounting services as needed.
Ultimately, choosing the right financial role at the right time ensures a construction company remains financially stable, efficient, and well-positioned for future success.