The latest episode of Builders, Budgets, and Beers Podcast we sat down with Dorrie Franzello-Kurtz from YHB, a top 100 CPA firm with a specialty in construction accounting. With nearly 30 years of experience, Dori leads YHB's outsourced accounting division and brings unmatched insight into what it really takes to create a financially healthy construction company.

From common estimating pitfalls to the often-overlooked dangers of rapid growth, this episode is a must-listen for builders looking to scale profitably and run tighter financial operations.

The Biggest Mistake Builders Make? Not Knowing What They Don’t Know

Many contractors assume everything is fine because they have cash in the bank. But as Dorrie puts it, "I can’t make you money—but I can keep you from losing it." Builders often operate without true job costing, fail to account for indirect overhead, and rely on outdated or high-level accounting that leaves them exposed.

Job Schedules: The Most Common Blind Spot

Dorrie shares that the most frequent issue she uncovers isn’t estimating or forecasting—it’s inaccurate job schedules. When companies can’t see how their actual costs compare to estimates, they end up recognizing revenue they haven’t truly earned. This leads to margin erosion, surprises at year-end, and challenges with lenders or bonding agents.

She walks through the process of how she helps contractors set up:

• Clean job schedules with monthly updates
• Consistent conversations between field and office
• KPIs tied to banking and bonding expectations

Indirect Costs Are Quietly Sinking Your Profit

From fuel and trucks to small tools and credit card purchases, indirect costs often go unallocated. Dorrie emphasizes that unless those costs are built into your job estimates, you're covering them out of your margin—or worse, out of pocket.

She gives real-world examples: project manager trucks, equipment maintenance, and recurring supplies like paint brushes or drop cloths. Most builders don’t realize how much these add up until it’s too late.

Scaling Without Systems = Risk

Dori also breaks down a common trap: companies grow their top-line revenue rapidly (e.g., from $2M to $10M) but don’t upgrade their accounting systems or cost tracking accordingly. That growth often results in reduced profitability, staff burnout, and difficulty securing financing.

Her solution? Meet contractors where they are and build better systems over time—without overcomplicating things.

Start Simple: KPIs & Communication

When Dorrie works with contractors, she starts with a handful of key metrics:

• Working capital
• Debt-to-equity ratio
• AR and AP turnover
• Gross profit by job

She then connects those KPIs to what bonding agents and banks are looking for. But more importantly, she helps build a bridge between the field and the office—clarifying timelines for payroll, receipts, job costing, and approvals so nothing gets missed. “The best time to set up these processes was when you started. The second-best time is now,” Dorrie says.

Final Thoughts

This episode is packed with no-nonsense guidance from someone who’s been in the trenches with hundreds of builders. Whether you’re a small firm looking to set a strong foundation or a growing company scaling past $10M in revenue, there’s something in this conversation for you.

Want to learn more about Dorrie’s work with construction clients? Check out YHB’s outsourced accounting services—or better yet, listen to the full episode to hear how she helps builders stop losing money before they even realize it's gone.

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