Accounting Firm Serving the Tri-State Area Since 1983

Construction Accountants in Chalfont

If you’re running a construction business, it’s crucial to have a competent team of accountants who can guarantee precise financial reporting and assist you in making sound business decisions. For over 35 years, SD Associates, P.C.’s construction accountants in Chalfont have delivered exceptional services. With our extensive experience and knowledge, we can guide you through the intricacies of financial management and accounting specific to the construction industry.

Our skilled team of professionals is equipped to support your business in a multitude of ways, including precise bookkeeping, efficient payroll services, and guidance in contract negotiations. We understand that every construction business is distinct, and we offer personalized services to address your specific requirements. Our services range from tax preparation and financial planning to budgeting. Additionally, we provide consulting services to help you establish an effective cost management strategy and increase your profit margins.

Construction Accounting vs. Standard Accounting

While accounting services are necessary for any business, construction companies have unique requirements that demand specialized expertise in construction accounting. At SD Associates, P.C., we offer comprehensive construction accounting services customized to meet the industry’s specific demands.

Long-Term Production Cycles

Construction projects typically span several weeks, months, or even years, resulting in a more extended production cycle than most other businesses. This lengthy cycle can make it challenging to accurately track profits, making it crucial to monitor various accounts throughout the process. Our construction accountants in Chalfont possess the expertise and knowledge necessary to oversee long-term project cycles of any scale, guaranteeing accuracy and timely financial reporting.

Tracking Multiple Jobs

Numerous construction companies employ sizable teams that handle multiple projects concurrently. Monitoring critical metrics such as revenue, expenses, and workforce can present difficulties, but our team is proficient in this setting. We furnish exhaustive financial statements that exhibit the profitability of each task and enable construction firms to effectively manage their undertakings.

Variety of Services

Construction companies provide an extensive range of services, ranging from general contracting to specialized subcontracting. These services have distinctive financial demands, underscoring the significance for construction enterprises to engage an accounting team that can address their distinct necessities. At SD Associates, P.C., we offer a range of construction-focused accounting services, including job cost estimation and analysis, cash flow supervision, progress billing, accounts payable/receivable, and other related services.

COGS vs. Overhead

In construction accounting, a critical consideration is the differentiation between COGS (cost of goods sold) and overhead costs. COGS encompasses materials, labor, and other direct expenses linked to a specific project, whereas overhead costs comprise indirect expenditures such as rent, utilities, equipment maintenance, and others. For instance, insurance expenses may be categorized as overhead if they cover multiple jobs, or as COGS if they pertain solely to a particular project. With our expertise, we can precisely differentiate between COGS and overhead costs to guarantee accurate financial reporting.

Why Work With a Construction Accountant

It is essential for a construction company to have the right accountant to oversee and manage their finances. Our Chalfont construction accountants are experts in all aspects of financial management for construction companies, including bookkeeping, tax planning and preparation, payroll compliance and more.

SD Associates, P.C. comprehends the unique obstacles that accompany running a construction enterprise, such as variable cash flows, fluctuating costs and margins, intricate contracts, and other related factors. Our aim is to assist you in enhancing your financial management and ensuring compliance with all relevant regulations, enabling you to concentrate on your construction company.

Construction Accounting FAQs

What is construction accounting?

The practice of managing and reporting financial information relating to building projects is referred to as construction accounting. Construction accounting is keeping track of a project’s expenses, revenues, assets, liabilities, and other comprehensive information in order to optimize profits while staying under budget.

What is the importance of construction accounting?

Construction accounting is critical in the successful completion of a project. This type of accounting helps contractors to monitor budget and cash flow while accurately tracking their labor costs, materials purchased, and other expenses associated with the project. It also ensures that all taxes are paid and that any applicable payment claims are made in a timely manner. Without construction accounting, there is a risk of overspending on projects, leading to potential financial losses.

How does working with subcontractors affect my finances?

Working with subcontractors is a common practice in the construction industry. When working with subcontractors, it is important to keep track of their payment and invoice records for accurate budgeting purposes. This helps you ensure that all payments are tracked correctly and that any applicable taxes or payments claims are made on time. Additionally, knowing your subcontractors’ costs upfront will help you accurately plan for the overall cost of the project. Lastly, by knowing the accurate costs associated with each subcontractor, you will be able to better negotiate favorable rates and payment terms.

Do construction companies have to use GAAP?

Generally accepted accounting principles (GAAP) are the standards used to prepare and present financial information. Construction firms may wish to adhere to GAAP in order for their clients and investors to be able to accurately understand the company’s operations and profitability.

Why should I choose SD Associates, P.C.?

SD Associates, P.C. has over 35 years of experience working with clients in the construction industry. Our team of experienced construction accountants is well-versed in the complexities of this type of accounting, and we can help you ensure that your finances are properly managed. We know how to integrate cutting-edge technology and processes with traditional methods for maximum efficiency and accuracy.

Contact Our Construction Accountants in Chalfont Today

At SD Associates, P.C., our construction accountants in Chalfont offer a comprehensive suite of construction accounting services. Our skilled and proficient team can assist you with an array of services, including subcontractor compliance, cost reports, forecasting, and other related services. Schedule your consultation today by calling us at (215) 517-5600.