CPA Firm Serving the Tri-State Area Since 1983

Construction Accountants in Germantown

It’s not easy to run a construction company. With managing subcontractors, tracking materials shipments, and making sure projects are finished on time, construction businesses are faced with many challenges. When you add taxes and finances to that list, it can quickly become overwhelming. That’s where our construction accountants in Germantown come into the picture.

Our team at SD Associates, P.C. specializes in offering extensive accounting services customized to meet the distinctive requirements of construction businesses. Our proficient staff has the expertise to provide guidance and support to your business, from taxation and payroll processing to managing accounts receivables. We can help you navigate the process of financial management and reporting, whether you’re working on large-scale commercial job sites or smaller home developments. We take the time to understand your business’s specific needs and objectives, providing you with customized solutions that ensure your success.

Construction Accounting vs. Standard Accounting

Accounting services are crucial for every business, but construction company accounting is distinct due to the extensive number of participants and payments involved in a construction project. Engaging an experienced construction accountant can help guarantee the efficient, accurate, and legally compliant functioning of your accounting processes.

Long-Term Production Cycles

The majority of construction projects are not completed in a day, and many take months or even years to finish. This makes it difficult to accurately calculate short-term profits and plan for future projects. A construction accountant must possess a thorough understanding of the long-term production cycle that accompanies such endeavors and be capable of managing accounting processes on a timeline that meets all necessary deadlines while adhering to GAAP compliance.

Tracking Multiple Jobs

Many construction companies have multiple projects running at once and must track costs associated with each job. They also need to compare revenues from one job against the cost of another job, and keep track of all payments made in order to properly calculate profits. A Germantown construction accountant can create an organized system that allows for proper tracking of expenses, payments and profits across various channels.

Variety of Services

Construction companies provide a vast range of services, from framing to plumbing, and a construction accountant must have an understanding of each of these services to ensure the company’s accounting processes run smoothly. Engaging an experienced construction accountant can assist in developing an organized system that tracks costs associated with each type of service, guaranteeing accuracy when calculating profits and losses.

COGS vs. Overhead

A crucial aspect of construction accounting is distinguishing between COGS (cost of goods sold) and overhead costs. COGS encompasses the direct expenses linked with the materials and labor utilized for a specific project, while overhead includes administrative expenses like utilities, office supplies, and so on. For instance, the expense of the lumber used in a construction project would be regarded as COGS, while the cost of office supplies used during the project would be considered overhead. An experienced construction accountant can assist in establishing an organized system that precisely calculates and tracks both COGS and overhead expenses.

Why Work With a Construction Accountant

It’s essential to work with a Philadelphia CPA firm that has experience with clients in the construction industry. Our Germantown construction accountants have worked with construction companies of all sizes throughout the region, meaning that you can trust us to provide expert financial guidance. We have extensive knowledge of the latest accounting technologies, construction industry regulations, and best practices. Our team will help you maximize your profitability while also ensuring compliance with applicable laws and regulations.

We also offer impartial advice aimed at attaining your specific objectives. Whether you require help with cash flow management, contract bidding, budgeting and forecasting, compliance monitoring, or other financial services, we are ready to aid you.

Construction Accounting FAQs

What is construction accounting?

Construction accounting is the collection, tracking and reporting of financial data related to a construction project. Construction accountants use specialized software to monitor the cost of materials, labor and other expenses associated with building projects. They also help track revenue generated from projects, such as payments received from clients or subcontractors.

How does working with subcontractors affect my finances?

Working with subcontractors can have a significant impact on a construction project’s finances. It is important to understand the financial implications of any contract entered into with subcontractors, including how funds will be dispersed and when payments are due. Construction accountants can help manage the funds associated with these contracts and ensure timely payment for services rendered.

Do construction companies have to use GAAP?

Generally accepted accounting principles (GAAP) provide a framework for maintaining financial records and help ensure accuracy in reporting. Construction companies in the United States must adhere to GAAP when preparing their financial statements, as well as when tracking expenses and income related to individual projects. At SD Associates, P.C., our construction accountants are experienced in navigating the complexities of GAAP and can help ensure your financials are accurate and compliant.

How can construction accountants help my business save money?

Construction accountants can provide invaluable insight into ways to reduce costs and improve profitability on a project. They may recommend changes in materials, labor practices or other factors that could help lower expenses while still achieving the desired outcome. Additionally, they can track subcontractor payments, identify tax exemptions and advise on more efficient billing methods that result in higher revenues.

Contact Our Construction Accountants in Germantown Today

Are you ready to obtain the financial guidance and advice required for your construction business? Look no further than SD Associates, P.C. Our experienced construction accountants in Germantown possess extensive knowledge of all financial management aspects related to the industry. Our team will guide you throughout the process, from developing accounting systems to offering tax planning services.

Our construction accountants offer a comprehensive range of services that aid in achieving your financial objectives. We customize our solutions to cater to the particular requirements of each client and provide one-on-one guidance to ensure you obtain the most value from our partnership. Schedule your consultation with our team today by calling (215) 517-5600.