Accounting Firm Serving the Tri-State Area Since 1983

Construction Accountants in Furlong

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 Furlong 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.

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 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 Furlong 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 hire extensive crews that handle multiple projects simultaneously, making it difficult to track statistics like income, costs, and labor. However, our team is adept in managing such environments. We offer comprehensive financial reports that demonstrate the profitability of each job and enable construction companies to 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

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 Furlong 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 Furlong Today

At SD Associates, P.C., our construction accountants in Furlong 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.