CPA Firm Serving the Tri-State Area Since 1983

Construction Accountants in Society Hill

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 Society Hill are here to alleviate that burden.

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

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

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 Society Hill 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

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

Collaborating with a Philadelphia CPA firm with prior experience in serving clients in the construction industry is crucial. Our construction accountants in Society Hill have worked with construction companies of all sizes throughout the region, establishing us as a trusted source of 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 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 Society Hill Today

Are you ready to obtain the financial guidance and advice required for your construction business? Look no further than SD Associates, P.C. Our experienced construction accountants in Society Hill possess extensive knowledge of all financial management aspects related to the industry. Our team will guide you throughout the process, from developing accounting systems to offering tax planning services.

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.