CPA Firm Serving the Tri-State Area Since 1983

Construction Accountants in Northeast Philadelphia

Running a construction company is no easy feat. Managing subcontractors, tracking material shipments, and ensuring timely project completion are just some of the challenges faced by construction businesses. When you factor in taxes and finances, it can become overwhelming quickly. Our construction accountants in Northeast Philadelphia are here to alleviate that burden.

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

Although every business requires accounting services, construction company accounting is distinct due to the multitude of participants and payments involved in a construction project. Collaborating with an experienced construction accountant is crucial in ensuring that your accounting processes run efficiently, accurately, and comply with relevant regulations.

Long-Term Production Cycles

Construction projects typically span over several months or even years, making it challenging to accurately calculate profits in the short-term and to plan for future projects. A construction accountant must have a sound understanding of the long-term production cycle that comes with such endeavors and be able to manage accounting processes within 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 Northeast Philadelphia can create an efficient system that enables proper tracking of expenses, payments, and profits across various channels.

Variety of Services

Construction companies provide an extensive range of services, spanning from framing to plumbing, and a construction accountant must have a thorough understanding of each service to ensure the smooth functioning of the company’s accounting process. An experienced construction accountant can assist you in developing an organized system that tracks the costs associated with each type of service, guaranteeing accuracy when calculating profits and losses.

COGS vs. Overhead

An essential aspect of construction accounting is distinguishing between COGS (cost of goods sold) and overhead costs. COGS include the direct costs of materials and labor used for a particular project, while overhead encompasses administrative expenses such as utilities and office supplies. For instance, the cost of lumber used in a construction project would be categorized as COGS, while the cost of office supplies utilized during the project’s duration would be classified as overhead. With the aid of an experienced construction accountant, you can establish a system that accurately calculates and tracks both COGS and overhead expenses.

Why Work With a Construction Accountant

Collaborating with a Philadelphia CPA firm experienced in serving clients in the construction industry is crucial. Our construction accountants in Northeast Philadelphia have worked with construction companies of all sizes across the region, assuring you of receiving 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 Northeast 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 Northeast 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 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.