CPA Firm Serving the Tri-State Area Since 1983

Construction Accountants in Port Richmond

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 Port Richmond 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

While every business needs accounting services, construction company accounting is unique due to the sheer number of participants and payments associated with a construction project. Working with an experienced construction accountant helps ensure your accounting processes are running efficiently, accurately and in compliance with applicable laws.

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

Construction companies often manage multiple projects simultaneously and must track the costs associated with each project. They also need to compare revenues from one project against the costs of another project and monitor all payments made to accurately calculate profits. A construction accountant in Port Richmond can establish an organized system that facilitates the 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

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