The CFO skill set homebuilding founders too often underestimate

"Entrepreneurs start homebuilding or land development companies, and right off the bat, it's all about finding and putting together deals and securing capital. After all, as a client once said, 'You know, all the company management is hypothetical if we don't have deals.' From that stems find 'em and finance 'em."

"Then the company grows and becomes more complex. Accounting is often given insufficient attention when the Treasurer is in charge, and there is a tendency to believe that capital must be raised today and that systems can be improved tomorrow. But tomorrow never comes."

"Often, while they might not admit it out loud, the founder can't help but think, 'How hard can accounting be? It's a bunch of rules to follow!' But it's not. Sure, there are rules, but they don't provide all the answers. And they certainly don't help you interpret the financials and pro forma statements produced."

Home building and land development companies frequently undervalue their Chief Financial Officers, a pattern rooted in entrepreneurial priorities. Founders focus initially on deal-making and capital raising, often promoting bookkeepers to controller roles or fundraising employees to VP Finance positions. As companies grow more complex, this creates gaps: treasurers prioritize capital raising over accounting systems, while controllers lack strategic capital perspectives. Controllers seeking perfect answers slow decision-making, while founders underestimate finance complexity. Financial management requires more than rule-following; it demands interpretation of financials, pro forma analysis, and strategic partnership with leadership to balance accounting precision with business pragmatism.

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