The CPA Construction Companies Trust

Accounting Firm Serving the Tri-State Area Since 1983

Construction Accountants in Bucks County

Financial management is an unavoidable aspect of running a construction company. Without proper financial guidance and oversight, it can be difficult to keep track of the numbers and make sure that all of your projects are running smoothly at the same time. Our construction accountants in Bucks County understand the unique challenges that come with managing a construction business. They have the knowledge and experience to provide comprehensive financial guidance for all stages of your project, from initial budgeting to ongoing monitoring and reporting.

At SD Associates, P.C., our construction accounting team offers services such as cost management, budgeting and forecasting, troubleshooting, bookkeeping, and more. Our goal is to help you manage the financial aspects of your project, so that you can focus on running the business. We offer custom solutions to meet your needs and take the time to understand your business so that we can tailor our services to best serve you.

Construction Accounting vs. Standard Accounting

Every business needs an accountant, but construction companies have specific needs that require specialized knowledge for accurate financial reporting. There are significant differences between standard accounting and construction accounting, and the expertise of a qualified professional is essential for success.

Long-Term Production Cycles

It’s rare for a construction project to be over and done within a week. Many construction companies take on projects that take months or even years to complete, which can make it hard to accurately track and record profits. A qualified Bucks County construction accountant understands the long-term nature of a project and can help ensure your financial records accurately reflect the progress of each job. They can also set up a streamlined system for tracking these numbers in the future.

Tracking Multiple Jobs

For the same reasons, construction accounting is essential for businesses that take on multiple projects at once. Keeping track of different jobs, their timelines and projected profitability can be complex and time-consuming. With so many moving parts, it’s essential to have a strong financial system in place. SD Associates, P.C. has extensive experience setting up systems to track these activities effectively as well as any associated costs.

Variety of Services

Construction companies offer a wide variety of services, from general contracting to construction management. These services require different methods of tracking and reporting, and a qualified accountant will be able to provide insight into the best way to do this. They can help explain the differences between a W-2 employee and contracted labor, for example, or the cost benefits of using an in-house team versus outsourcing certain services.

COGS vs. Overhead

Another essential aspect in construction accounting is the distinction between COGS (cost of goods sold) and overhead costs. COGS are the direct costs associated with a project, such as materials and labor. Overhead costs are indirect expenses related to running a business, like rent, utilities and insurance. For example, a contractor may be able to write off the cost of a new truck, but it’s important to differentiate between COGS and overhead in order to make sure these costs are tracked correctly.

Why Work With a Construction Accountant

For a construction company, it is critical to partner with experienced construction accountants in Bucks County. It’s easy for financial records to fall to the wayside when you’re juggling multiple projects, but having a construction accountant on board can help ensure your company’s financial health. A construction accounting professional can provide assistance in areas such as budget management, cost control and cash flow – all of which are essential components when it comes to running a successful business.

A construction accountant will have an intimate understanding of the industry and the unique financial considerations which come with it. With that understanding, they can help identify cost savings, compliance issues and areas of risk – all of which can be crucial when running a construction business. Additionally, a construction accountant will have expertise in tax planning and preparation to ensure your company is taking advantage of all the available deductions.

Construction Accounting FAQs

What is construction accounting?

Construction accounting refers to the process of managing and reporting financial information related to construction projects. Construction accounting involves the tracking of costs, revenues, assets, liabilities, and other detailed information related to a project in order to ensure that profits are maximized while meeting budget goals.

 

What is the importance of construction accounting?

Construction accounting is critical for contractors who want to successfully manage their construction projects, maintain profitability, and remain compliant with industry regulations. By accurately tracking all expenses associated with a project, contractors can quickly identify any areas where resources are being mismanaged or costs are not being tracked properly. Construction accounting also helps to ensure that contractors stay within budget and maximize profits on each project.

 

How does working with subcontractors affect my finances?

When subcontractors are hired to complete a project, they are responsible for their own expenses and finances. As the contractor, you will need to manage those costs in order to remain within budget. Additionally, it is important to consider the risk associated with working with subcontractors and take appropriate steps to protect your financial interests.

 

Do construction companies have to use GAAP?

Generally accepted accounting principles (GAAP) are the standard accounting principles used by all businesses in the United States, including construction companies. GAAP provides a set of rules and guidelines that must be followed in order to ensure accurate financial reporting and compliance with regulations. Our team of experienced construction accountants can help you develop a system of accounting practices that is in line with GAAP standards.

Contact Our Bucks County Construction Accountants Today

SD Associates, P.C. is a premier firm of construction accountants in Bucks County and the surrounding areas. Our experienced team of professionals provides comprehensive accounting, tax, and financial services for builders and contractors on any level. With our specialized expertise in dealing with the complexities of the construction industry, we can help you manage your business more effectively. Contact us today at (215) 517-5600 to schedule your consultation.