CPA Firm Serving the Tri-State Area Since 1983

Construction Accountants in North Philadelphia

Running a construction company is a challenging endeavor. From overseeing subcontractors and tracking materials shipments to ensuring timely project completion, construction businesses are confronted with numerous obstacles. When financial management and taxes are added to the mix, it can swiftly become overwhelming. This is where our construction accountants in North Philadelphia come in to provide assistance.

At SD Associates, P.C., our professionals specialize in delivering extensive accounting services customized to cater to the specific requirements of construction businesses. From tax planning and payroll processing to overseeing accounts receivables, our skilled team has the knowledge and expertise to provide the guidance and support your business needs to flourish. Whether you’re handling large-scale commercial job sites or smaller home developments, we can help you navigate the process of financial management and reporting. We take the time to comprehend your business’s distinctive needs and objectives, providing tailored solutions that guarantee 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

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 North Philadelphia 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

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

It’s essential to work with a Philadelphia CPA firm that has experience with clients in the construction industry. Our North Philadelphia 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.

In addition, we offer impartial guidance that aims to attain your precise objectives. Whether you require aid with cash flow management, contract bidding, budgeting and forecasting, compliance monitoring, or any other financial services, we are available to provide assistance.

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 North Philadelphia Today

Are you prepared to receive the financial guidance and advice necessary for your construction business? SD Associates, P.C. is available to provide assistance. Our proficient team of construction accountants in North Philadelphia has comprehensive knowledge of all aspects of financial management for the industry. Whether it’s creating accounting systems or offering tax planning services, our team is committed to assisting 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.