CPA Firm Serving the Tri-State Area Since 1983

Construction Accountants in Roxborough

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 Roxborough 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

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 Roxborough can establish an organized system that facilitates the 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

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 Roxborough 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.

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 Roxborough 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 Roxborough 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.