Welcome to xFiles, Solver's investigative video series that uncovers the most perplexing mysteries plaguing finance teams everywhere. Each episode solves common financial planning nightmares that keep CFOs awake at night.
The Mystery: Revenue Growth Without Profit in Construction
Our latest case examines a widespread challenge in the construction industry. An $80 million general contractor with nearly 100 employees was experiencing strong top-line revenue growth, yet their net income margins mysteriously declined. Sound familiar? This company faced industry-typical pressures including inflation, persistent labor shortages, and looming tariffs, but lacked the visibility to pinpoint exactly where costs were spiraling out of control. Despite pressure from ownership to expand revenue while containing expenses, the finance team had no clear path forward.
The Investigation Begins
This case revealed a classic construction industry scenario: fragmented systems creating blind spots. The company juggled multiple platforms including their ERP, CRM, and various project management tools. Each month, the finance team exported data from these disconnected sources and compiled massive Excel workbooks in an attempt to track actual results against budget.
The consequences were severe. Leadership couldn't access clear KPI visibility, had no understanding of expected results, and completely lacked the ability to drill down and identify where costs were exceeding projections. They needed a solution that would restore visibility and put them back in control of their financial performance.
Watch the full investigation:
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How to Restore Visibility and Control Over Construction Profitability
Craig Anderson's investigation revealed a comprehensive three-part solution that eliminated data silos and restored financial clarity:
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Unified Data Integration: By implementing Solver with nightly automated feeds from their ERP and CRM systems, all data flowed directly into Solver's cloud data warehouse. This eliminated the manual export process and destroyed the data silos that had been obscuring their financial picture.
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Reporting and Analysis: A streamlined monthly reporting package gave leadership the power to drill down into their numbers and perform independent analysis. No more waiting for manual reports or wondering about data accuracy.
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Monthly Reforecasting: Instead of only looking backward at historical variances, the company moved to a monthly reforecasting cadence. This proactive approach allowed them to anticipate cost changes and address issues before they impacted profitability, putting leadership firmly in the driver's seat.
The result? Complete transparency, full accountability, and an audit trail of their financial performance. While no one can predict the future with certainty, proper financial modeling enables companies to plan for multiple scenarios. When specific conditions begin to materialize, leadership knows exactly how to respond, protecting profitability. This level of control should be standard in comprehensive xFP&A (Extended Financial Planning & Analysis) solutions.
Close Your Own Budget Mystery Case
Don't let fragmented systems and data silos drain your profits while you watch helplessly. Let's investigate your situation together and see how Solver can restore visibility and control to your business. Learn more about budget automation and discover all the ways Solver prevents Excel headaches.
