Accounting Firm Serving the Tri-State Area Since 1983

Construction Accountants in Richboro

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 Richboro 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

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

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 Richboro 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 offer a wide variety of services, from general contracting to specialty subcontracting. Each of these services has its own unique financial needs, making it important for construction businesses to have an accounting team that can meet their individual requirements. At SD Associates, P.C., we provide a variety of construction-specific account services such as job cost estimating and analysis, cash flow management, progress billing, accounts receivable/payable, and more.

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

It is essential for a construction company to have the right accountant to oversee and manage their finances. Our Richboro 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 Richboro Today

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