CPA Firm Serving the Tri-State Area Since 1983

Construction Accountants in Kensington

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 Kensington 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

Few construction projects can be completed in a day, or even a month. Most take months, and some projects can take years to complete. As such, it can be challenging to properly calculate profits in the short-term, and to plan for future projects. A construction accountant must understand the long-term production cycle that comes with such an undertaking and be able to manage accounting processes on a timeline that meets all necessary deadlines while remaining compliant with GAAP.

Tracking Multiple Jobs

Numerous construction companies handle multiple projects concurrently and are required to track the expenses associated with each job. They also need to compare revenues from one job against the cost of another and keep track of all payments made to accurately calculate profits. A construction accountant in Kensington can create an efficient system that enables proper tracking of expenses, payments, and profits across various channels.

Variety of Services

Construction companies offer a wide variety of services, from framing to plumbing, and a construction accountant must be familiar with each of them in order for the company’s accounting process to run smoothly. An experienced construction accountant can help you create an organized system that tracks costs associated with each type of service, ensuring accuracy when calculating profits and losses.

COGS vs. Overhead

Another essential consideration in construction accounting is the distinction between COGS (cost of goods sold) and overhead costs. COGS includes the direct costs associated with the materials and labor used for a particular project, while overhead includes administrative expenses such as utilities, office supplies, etc. For example, the cost of the lumber used in a construction project would be considered COGS, while the cost of office supplies used during the course of the job would be considered overhead. An experienced construction accountant can help you set up an organized system that accurately calculates and tracks both COGS and overhead expenses.

Why Work With a Construction Accountant

Collaborating with a Philadelphia CPA firm with prior experience in serving clients in the construction industry is crucial. Our construction accountants in Kensington have worked with construction companies of all sizes throughout the region, establishing us as a trusted source of expert financial guidance. We possess extensive knowledge of the latest accounting technologies, construction industry regulations, and best practices. Our team will assist you in optimizing your profitability while 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 Kensington Today

Ready to get the financial guidance and advice you need for your construction business? SD Associates, P.C. is here to help. Our experienced team of construction accountants in Kensington are well-versed in all aspects of financial management for the industry. From developing accounting systems to providing tax planning services, our team will assist you every step of the way.

Our construction accountants provide comprehensive services to help you meet your financial goals. We tailor our solutions to meet the specific needs of each client and offer one-on-one advice to ensure you get the most from your partnership with us. Contact our team today at (215) 517-5600 to schedule your consultation.