CPA Firm Serving the Tri-State Area Since 1983

Construction Accountants in West 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 West Philadelphia 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

Few construction projects can be completed in a day, or even a month. Most take months, and some projects can take years to complete. As such, it can be challenging to properly calculate profits in the short-term, and to plan for future projects. A construction accountant must understand the long-term production cycle that comes with such an undertaking and be able to manage accounting processes on a timeline that meets all necessary deadlines while remaining compliant with GAAP.

Tracking Multiple Jobs

Many construction companies have multiple projects running at once and must track costs associated with each job. They also need to compare revenues from one job against the cost of another job, and keep track of all payments made in order to properly calculate profits. A West Philadelphia construction accountant can create an organized system that allows for proper tracking of expenses, payments and profits across various channels.

Variety of Services

Construction companies provide a vast range of services, from framing to plumbing, and a construction accountant must have an understanding of each of these services to ensure the company’s accounting processes run smoothly. Engaging an experienced construction accountant can assist in developing an organized system that tracks 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 West Philadelphia 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 West Philadelphia 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 West Philadelphia 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 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.