Construction
Functional Accounting for Construction
We not only remain up-to-date on developments in tax law impacting the construction industry, we also establish relationships with third-party experts including real estate professionals, lawyers, and bankers. We can help prepare the financial documentation needed by creditors, banks, suppliers, and bonding firms to receive financing.
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You've come to the right place if you aim to maximize profitability.
The construction industry faces a specific set of challenges that many other sectors do not face, all of which differ from contract to contract, such as insurance and bonding standards, labor problems, and a highly competitive bidding process.
You need an accounting firm that knows the company whether you run a construction management firm or are a general contractor, subcontractor, residential developer, or if you hold a company in any trade related to construction.
Our Services for Construction Accounting
We provide various accounting and consulting services: from mergers and acquisitions and strategic planning to compliance with financial statements and building audits.
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To start working with us call at 404-900-1040!
What Our Customers Say
We believe that our clients’ success equals our success. We understand you and your business' needs.
What type of accounting is used in construction?
Construction accounting is a specialized form of accounting that tracks costs and revenues on a project-by-project basis. It often involves job costing, progress billing, and managing retentions, which differ significantly from general business accounting. This method tracks costs and revenues for each individual project, ensuring accurate financial tracking for each job. Additionally, percentage-of-completion accounting is commonly used for long-term projects, where revenue is recognized based on the progress made.
Why do construction companies need specialized accounting services?
Construction companies require specialized accounting because of the unique financial challenges, including fluctuating project costs, complex contract terms, managing multiple projects simultaneously, and compliance with specific industry regulations. These services help with job costing, compliance with regulations, tax planning, and cash flow management, ensuring that projects stay on budget and financial reporting remains accurate.
What are the key accounting services offered to construction companies?
Key accounting services for construction companies include:
- Job costing to track project-specific expenses and revenues
- Payroll services, ensuring timely and accurate payments
- Financial reporting and audits to comply with regulations and project needs
- Tax planning and preparation to optimize deductions and ensure compliance
- Cash flow management to avoid project delays and maintain financial health
- Business valuations for mergers, acquisitions, or financial planning
What is job costing, and why is it important for construction companies?
Job costing is the process of tracking expenses—such as labor, materials, and overhead—on a per-project basis. It is crutial for construction companies because it ensures that each job remains within budget, helps identify areas for cost savings, make informed bidding decisions and provides accurate financial insights to keep projects profitable.
How can CPA services help with cash flow management in construction?
CPAs can assist with cash flow management by monitoring project cash flows, ensuring that invoices are paid on time, managing payment schedules, and advising on financing options. This helps construction companies avoid liquidity problems, ensures funds are available for ongoing projects, and prevents delays or cost overruns.
What should a construction business look for when hiring a CPA?
When hiring a CPA, a construction business should look for:
- Experience in the construction industry, with knowledge of job costing and project management
- Familiarity with construction contracts and related tax laws
- Proven track record of managing complex financial reporting and audits
- Expertise in cash flow management and cost optimization
- Ability to offer strategic financial advice and help with long-term planning, including succession planning and business valuation