Accounting Firm Serving the Tri-State Area Since 1983

Construction Accountants in Southampton

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 Southampton 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 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 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 Southampton 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

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

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

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 Southampton construction accountants are experts in all aspects of financial management for construction companies, including bookkeeping, tax planning and preparation, payroll compliance and more.

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 Southampton Today

Our Southampton 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.