CPA Firm Serving the Tri-State Area Since 1983

Construction Accountants in Rittenhouse Square

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 Rittenhouse Square come into the picture.

Our professionals at SD Associates, P.C. specialize in providing comprehensive accounting services customized to meet the unique needs of construction businesses. From taxation and payroll processing to managing accounts receivables, our experienced staff has the expertise to provide the guidance and support your business needs to thrive. From large-scale commercial job sites to smaller home developments, we can help you navigate the process of financial management and reporting. We take the time to understand your business’s individual needs and goals, providing you with tailored 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

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 Rittenhouse Square 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

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 Rittenhouse Square 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 can also provide objective advice aimed at achieving your specific goals. Whether you need assistance with cash flow management, contract bidding, budgeting and forecasting, compliance monitoring or other financial services, we are here to assist 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 Rittenhouse Square 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 Rittenhouse Square 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 an extensive range of services to help you achieve your financial objectives. We customize our solutions to fulfill the specific requirements of each client and provide personalized advice to guarantee you receive maximum benefit from our partnership. Schedule your consultation with our team today by calling (215) 517-5600.