I recently had the pleasure of sitting down with Craig Daniels, one of our directors and CCIFPs here at Brown Edwards & Company, for an in-depth conversation about construction financial management, industry trends, and professional development. Craig brings 13 years of public accounting experience to our construction niche, and his insights provide valuable perspective for anyone involved in construction finance.
Meet Craig Daniels
Craig's journey in construction accounting began right here in West Virginia. Growing up in Mill Creek, a small town in Randolph County, he graduated from Tygarts Valley High School in 2008 and went on to earn his accounting degree from Concord University in 2012. Since then, public accounting at Brown Edwards has been his professional home.
As a CPA and CCIFP (Certified Construction Industry Financial Professional), Craig obtained his CPA license in September 2015 and became certified in construction industry financial management shortly thereafter, around 2017-2018. When he's not working with construction clients, you'll likely find him at a softball or baseball field coaching his kids' teams.
Craig's experience extends beyond traditional construction accounting. He's worked extensively with natural resources companies (coal, natural gas, timber) and oversees approximately 15 FAR (Federal Acquisitions Regulations) audits annually for engineering firms alongside our partner Tim George.
The CFMA Experience
One of the highlights of our conversation was discussing our recent trip to Las Vegas for the joint AGC/CFMA conference in November. The Construction Financial Management Association provides crucial education and networking opportunities for construction financial professionals, and this conference exemplified why CFMA membership is so valuable.
Craig emphasized how CFMA serves CFOs, controllers, and accounting professionals who deal with the unique aspects of construction accounting – percentage of completion, revenue recognition, and other nuances that set construction apart from other industries. The organization creates a network of professionals who can collaborate and share expertise to better serve their clients.
Two standout educational topics from the Las Vegas conference particularly resonated:
Tax Planning Updates: With election cycles bringing potential tax law changes, the conference provided valuable strategies contractors can implement for better tax planning and positioning.
Fraud Detection and Prevention: In today's digital environment with sophisticated phishing schemes and emerging AI threats, construction companies need robust protection strategies. The sessions offered practical approaches to mitigate these evolving risks.
Bringing CFMA to West Virginia
Perhaps the most exciting development Craig shared is his initiative to establish West Virginia's first CFMA chapter. Currently, our state is surrounded by active chapters in Ohio, Kentucky, Virginia, and Tennessee, but West Virginia construction financial professionals must travel out of state to participate in CFMA activities.
Craig has spent eight months developing this initiative, assembling a steering committee of three to five dedicated individuals. The goal is creating a local resource for back-office professionals – CFOs, controllers, and accounting teams – who currently lack the specialized support that organizations like the Contractors Association of West Virginia provide for field personnel and company owners.
The initiative requires genuine commitment from the construction financial community. CFMA guidelines mandate specific ratios of general members (contractors) to associate members (banks, sureties, other service providers), ensuring the organization remains focused on serving construction companies directly.
Craig's vision extends beyond just launching a chapter – he wants to create something that will thrive for decades, providing lasting value to West Virginia's construction industry.
Maximizing Balance Sheet Performance
We spent considerable time discussing balance sheet optimization for bonding and banking capacity – a topic Craig and I will be presenting in Chattanooga at the CFMA Southeastern Regional Conference in August. This subject is crucial because many contractors don't realize how sureties and banks evaluate their financial statements differently from standard accounting perspectives.
Key strategies we explored include:
Working Capital Management: Sureties calculate working capital differently than accountants, discounting receivables over 90 days, inventory, prepaids, and related party items. Understanding these adjustments helps contractors position their balance sheets more effectively.
Receivables Optimization: Craig shared examples of clients who improved their positions by negotiating favorable retention terms and accelerating collections, allowing them to finance projects with their own cash flow rather than external credit.
Under-billing Management: Keeping under-billings low addresses surety concerns about whether recognized revenue has actually been earned and whether there are billing approval issues.
Strategic Equipment Financing: Counterintuitively, financing equipment rather than paying cash preserves working capital, which is crucial for bonding capacity.
Industry Outlook and Opportunities
Our discussion of current market conditions revealed cautious optimism about the construction industry's direction. Despite challenges like supply shortages, labor issues, and price escalations during COVID-19, the industry has shown remarkable adaptability.
Infrastructure investment continues driving demand, with projects visible throughout our region. Craig noted the cyclical nature of construction, emphasizing how successful contractors prepare during good times for inevitable downturns. Companies building healthy balance sheets and adequate backlogs position themselves to weather economic storms and emerge stronger.
The key is understanding that while current conditions are favorable, preparation and strategic planning remain essential for long-term success.
Professional Development and Mentorship
Beyond his professional responsibilities, Craig's commitment to community development shines through his involvement with Education Elevators, a West Virginia program pairing professionals with elementary school students. For two years, he's mentored the same young man, spending an hour or two weekly providing positive guidance and discussing educational opportunities.
This commitment to developing others extends to his work with our firm's staff, where he enjoys helping newer professionals establish themselves in public accounting and construction specialization.
Brown Edwards' Construction Leadership
Our conversation highlighted Brown Edwards' position in the construction accounting field. With 11 CCIFPs on staff, we rank 34th among the top 50 construction CPA firms nationally according to Construction Executive magazine. This concentration of expertise reflects our commitment to understanding construction's unique financial challenges.
Craig noted our expansion efforts into Ohio and Kentucky markets – not traditional geographic expansion, but rather making our services available to a broader market through remote capabilities developed during COVID-19. This approach leverages our team's expertise while serving clients who need specialized construction accounting knowledge.
Looking Forward
Craig's career outlook remains firmly rooted in public accounting and construction specialization. He finds fulfillment in client relationships, professional development opportunities, and the chance to help others succeed in the field. His involvement in CFMA, conference presentations, and chapter development demonstrates a commitment to advancing the entire construction financial management profession.
Recognition and Achievement
Craig's dedication hasn't gone unnoticed – he was named a CFMA Rising Star in 2024, recognizing his contributions to the field and potential for continued leadership. As one of our youngest directors, he represents the future of construction financial management while building on the strong foundation established by experienced professionals.
Final Thoughts
My conversation with Craig reinforced why I've enjoyed specializing in construction accounting throughout my 26-plus year career. The industry's complexity, the relationships we build, and the opportunity to help contractors succeed make this specialization both challenging and rewarding.
Whether discussing technical accounting issues, balance sheet optimization strategies, or industry networking opportunities, Craig's expertise and enthusiasm exemplify the kind of professional development and client service that sets our construction niche apart.
For construction financial professionals in West Virginia interested in Craig's CFMA chapter initiative, I encourage reaching out through our website at BECPAS.com. Building this resource for our state's construction community represents an investment in the industry's future success.
This conversation represents just one example of the ongoing education, networking, and professional development that keeps construction financial management moving forward. Whether you're a seasoned professional or new to construction finance, staying connected with organizations like CFMA and colleagues like Craig ensures we all continue building expertise that serves our clients and industry effectively.