The ConTech Crew

How Construction Companies Fail While Profitable and Accounting Strategy to Survive with Bryce Wisan

The conversation with construction‑accounting specialist Bryce Wisan highlighted a unique set of financial challenges facing contractors. Unlike most industries where accounting is a historical record‑keeping function, construction relies heavily on real‑time job costing and cash‑flow management to win bids, monitor performance, and keep projects solvent. Wisan explained that job costing goes far beyond labor and material expenses, encompassing estimators, safety training, fuel, equipment depreciation, and yard costs. This granular data drives both operational decisions and profitability forecasts. A striking statistic cited in the interview is that roughly 70% of trade contractors go out of business while still technically profitable, underscoring cash‑flow timing as the true failure point. The discussion also underscored a looming talent crisis: 75% of U.S. CPAs are at retirement age and enrollment in accounting programs has dropped 18.9% over the past decade, creating an estimated shortfall of 340,000 accountants. While AI and other technologies can streamline routine tasks, Wisan cautioned they are not a substitute for skilled accountants, especially in the nuanced construction sector. To address these gaps, Wisan advocated for deeper specialization—training accountants to become construction finance experts—and leveraging resources from the Construction Financial Management Association (CFMA). Embracing targeted technology, upskilling existing staff, and improving cash‑flow visibility are essential steps for contractors to survive and thrive in a tightening labor market.