The state of architecture, engineering, and building SMBs' finances

Project-based businesses like architects, engineers, and builders face a unique financial balancing act. Work is often secured months in advance, costs arrive in unpredictable waves, and payments don’t always come on time.

QuickBooks recently surveyed businesses in the industry to discover how they were managing their finances. Let’s explore what the latest data tells us, and how forward-thinking businesses are adapting.

Cash flow under pressure

For architecture, engineering, and building firms, cash flow is the lifeblood that keeps projects moving. But according to QuickBooks data, 33% of businesses in the sector still struggle to keep track of it.

This isn’t necessarily surprising. Firms in the sector often deal with staggered billing cycles, high upfront costs, and unpredictable payment timelines. Delays in one project can quickly ripple across others, making it harder to forecast income, schedule work, or commit to new bids with confidence.

What makes this issue more pressing is the lack of professional support. Despite these challenges, only 29% of businesses in the sector use cash flow management services from an accountant.

That gap creates a vicious cycle: cash flow is hard to manage, yet few firms bring in the support that could stabilise it. And without visibility, even profitable businesses can find themselves stuck—unable to grow, invest, or respond quickly to change.

The fix

Architecture and construction businesses are increasingly turning to tools like QuickBooks Advanced, which offers real-time visibility into project income and outgoings, integrates directly with banking and payroll, and supports smarter forecasting. It turns cash flow from a stress point into a strategic advantage.

Low visibility into profitability

For architecture, engineering, and construction businesses, every project has its own margin. Yet, according to our data, only 23% of firms in the sector say they know which areas of their business are most profitable.

That’s a serious issue for companies bidding on complex, multi-phase projects. When you can’t clearly see which jobs, services, or clients generate the strongest returns, it’s easy to scale the wrong parts of the business—or overlook what’s actually driving growth.

Worse still, only 23% of businesses in the sector say they know how to use financial reports to make decisions. That means most leaders are making choices without reliable insight into job costing, overhead allocation, or margins by project.

The fix

Tools like QuickBooks Advanced help surface project-level profitability in real time, with clear, visual reports that link time, cost, and revenue. When your data is structured and accurate, you can make sharper bids, manage risk, and double down on what’s really working.

Forecasting is still falling behind

With long project timelines and high upfront costs, architectural and construction businesses need strong forecasting to stay ahead. But just 17% of businesses in the sector use their accountant for budgeting and forecasting support.

That’s a missed opportunity. Without proper forecasting, it’s hard to allocate resources, time hires, or plan for equipment and material costs. Businesses may overcommit on projects, underinvest in growth, or miss inflection points that could have been spotted with a clearer financial view.

The fix

Use software like QuickBooks Advanced to forecast project cash flows and revenue, track planned vs actuals, and collaborate with accountants on “what if” scenarios. Stop guessing and start planning proactively, backed by data that updates in real time.

Regulatory complexity remains a heavy load

From VAT on subcontractor payments to payroll for multi-site teams, firms in the sector face a wide range of financial regulations. And it’s not getting easier: 36% of architecture, engineering, and building businesses say regulatory complexity is a persistent challenge.

Late filings, incorrect submissions, or missed thresholds can result in penalties that drain capital and disrupt momentum. As firms scale, the risks multiply—but many still rely on manual processes and outdated systems to manage compliance.

The fix

QuickBooks Advanced helps automate VAT tracking, payroll compliance, and reporting tasks. It flags anomalies early, stays current with the latest rules, and reduces admin time. This means your team can focus on projects, not paperwork.

Accountants and AI: the new power tools for finance

In the building trades, the right tools make all the difference—and the same is true in finance. Yet many architecture, engineering, and construction businesses are still underusing one of their most valuable tools: their accountant.

While 56% of businesses in the sector use accountants for tax compliance, far fewer rely on them for cash flow (29%) or budgeting and forecasting (17%). That means most firms aren’t tapping into the strategic advice that could help them plan, grow, or respond to change.

At the same time, software is evolving fast. AI-powered tools can now automate reporting, surface insights, and cut hours of manual admin—if firms are set up to take advantage of them.

The smartest firms aren’t choosing between software and advisors. They’re combining both. QuickBooks Advanced automates routine admin, giving accountants more time to guide big-picture strategy. AI-powered dashboards help teams and advisors spot problems early and make sharper, faster decisions.

Together, they turn your finance function into a genuine growth driver.

Final thoughts

Small and medium-sized businesses in architecture, engineering, and construction face many of the same pressures they always have: tight margins, long timelines, unpredictable cash flow. But the difference now is that the tools to manage those pressures have evolved.

The data is clear. Firms that invest in better financial visibility, smarter forecasting, and proactive accountant support are better equipped to grow—without losing control.

Whether you’re managing a team of ten or scaling across multiple sites, your finance function should be as reliable and responsive as your project teams. That means ditching manual workarounds, breaking out of the compliance-only mindset, and giving your accountant the systems they need to deliver real strategic value.

See how QuickBooks Advanced can help. Book a free demo today.

Or, dig into the common growing pains that scaling SMBs across all sectors face. Read our latest report here.

This content is for information purposes only, is provided free of charge and it is intended to be helpful to a wide range of businesses. Because of its general nature the information cannot be taken as comprehensive and they do not constitute and should never be used as a substitute for legal, accounting, or tax advice. Additional information and exceptions may apply. No assurance is given that the information provided is comprehensive, accurate or free of errors. Intuit does not have any responsibility for updating or revising any information presented herein. Any reliance you place on information found on this site or linked to on other websites will be at your own risk. You should consider seeking the advice of independent advisers and always check your decisions against your normal business methods and best practice in your field of business.