Accounting Firm Serving the Tri-State Area Since 1983

Construction Accountants in Newtown

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 Newtown 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.

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 all businesses require accounting services, construction companies have unique needs that necessitate specialized knowledge in construction accounting. At SD Associates, P.C., we deliver a comprehensive range of construction accounting services that are specifically tailored to meet the demands of the industry.

Long-Term Production Cycles

Most construction projects take weeks, months, or even years to complete. This creates a much longer production cycle than most other businesses experience and can make it harder to accurately track profits. That’s why it is critical to keep track of the various accounts throughout this process. Our construction accountants in Newtown have the skills and knowledge needed to manage long-term project cycles of all sizes, ensuring accuracy and timely financial reporting.

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

Another essential aspect in construction accounting is the distinction between COGS (cost of goods sold) and overhead costs. COGS include materials, labor, and other direct costs associated with a particular project. Overhead expenses are indirect costs such as rent, utilities, equipment maintenance and more. For example, insurance costs can be considered overhead if it covers multiple jobs, or COGS if it is specifically for a single job. We have the experience to accurately distinguish between COGS and overhead to ensure proper financial reporting.

Why Work With a Construction Accountant

Having an adept accountant to supervise and handle financial matters is imperative for any construction enterprise. Our construction accountants in Newtown specialize in every facet of financial management for construction companies, encompassing bookkeeping, tax planning and preparation, payroll compliance, and other related areas.

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 Newtown Today

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