Accounting Firm Serving the Tri-State Area Since 1983

Construction Accountants in Fairless Hills

If you want to guarantee precise financial reporting and make informed decisions for your construction business, it’s crucial to have a skilled team of accountants. SD Associates, P.C., boasts Fairless Hills construction accountants with over 35 years of outstanding service delivery. Our team possesses the knowledge and proficiency required to guide you through the intricacies of financial management and accounting within the construction sector.

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

Any kind of business needs accounting services, but construction companies have specialized needs that require expertise in construction accounting. At SD Associates, P.C., we provide comprehensive construction accounting services tailored to meet the needs of the industry.

Long-Term Production Cycles

Construction projects typically have longer production cycles that can span weeks, months, or even years, making it challenging to track profits accurately. As a result, it’s crucial to monitor the different accounts involved throughout the process. Our construction accountants in Fairless Hills possess the expertise and proficiency required to handle projects of all sizes with long-term cycles. They ensure precise and timely financial reporting, guaranteeing accuracy throughout the project’s duration.

Tracking Multiple Jobs

Many construction companies enlist large crews that work on several projects at the same time. Tracking statistics like income, costs, and labor can be challenging but our team is well-versed in this environment. We provide comprehensive financial reports that show the profitability of each job and help construction companies stay on top of their projects.

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

Having a competent accountant is critical for a construction company to handle their finances effectively. Our construction accountants in Fairless Hills possess proficiency in all facets of financial management for construction enterprises, ranging from bookkeeping, tax planning, and preparation, to payroll compliance and other related services.

SD Associates, P.C. understands the unique challenges that come with managing a construction business, such as fluctuating cash flows, fluctuating costs and margins, multiple complex contracts and more. We are here to help you better manage your finances and ensure that you remain compliant with all applicable laws, allowing you to focus 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 Fairless Hills Today

Our Fairless Hills construction accountants at SD Associates, P.C. ensure that you have access to a full range of construction accounting services. Whether you are looking for assistance with subcontractor compliance, cost reports, forecasting, or other services, our experienced and knowledgeable staff can help. Contact us today at (215) 517-5600 to schedule your consultation.