Accounting Firm Serving the Tri-State Area Since 1983

Construction Accountants in Feasterville

Your construction business needs an experienced team of accountants to ensure accurate financial reporting and help you make the best decisions for your company. At SD Associates, P.C., our Feasterville construction accountants have been providing quality services for over 35 years. We have the experience and expertise to help you navigate the complexities of financial management and accounting in your construction industry.

From ensuring accurate bookkeeping and payroll services, to helping you with contract negotiations, our team of experienced professionals has what it takes to help your business succeed. We offer a variety of services tailored to meet the unique needs of your construction business, such as tax preparation, budgeting and financial planning. We also provide consulting services to help you develop an effective strategy for managing costs and increasing 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 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 Feasterville 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

The array of services offered by construction companies ranges from general contracting to specialized subcontracting. Each of these services has its distinct financial necessities, underscoring the significance of construction businesses having an accounting team that can cater to their specific requisites. At SD Associates, P.C., we extend diverse construction-specific accounting services, including but not limited to job cost estimation and analysis, cash flow administration, progress billing, accounts receivable/payable, and others.

COGS vs. Overhead

A crucial consideration in construction accounting is the differentiation between COGS (cost of goods sold) and overhead costs. COGS pertain to materials, labor, and other direct expenses linked to a specific project, whereas overhead costs refer to indirect expenditures like rent, utilities, equipment maintenance, and so on. Take insurance costs, for instance, they can be categorized as overhead when they cover multiple jobs, or COGS when they solely apply to a particular project. With our expertise, we can precisely differentiate between COGS and overhead costs, ensuring 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 Feasterville construction accountants are experts in all aspects of financial management for construction companies, including bookkeeping, tax planning and preparation, payroll compliance and more.

At SD Associates, P.C., we recognize the distinct challenges that arise when managing a construction business, including volatile cash flows, fluctuating costs and margins, intricate contracts, and more. We are committed to aiding you in effectively managing your finances and ensuring compliance with relevant laws and regulations, enabling you to concentrate on growing 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 Feasterville Today

At SD Associates, P.C., our construction accountants in Feasterville provide a comprehensive array of construction accounting services. We have a skilled and knowledgeable team that can assist you with subcontractor compliance, cost reporting, forecasting, and other related services. Contact us today at (215) 517-5600 to book your consultation and access our expert assistance.