The CPA Construction Companies Trust

Accounting Firm Serving the Tri-State Area Since 1983

Construction Accountants in New Hope

If you want to guarantee precise financial reporting and make informed decisions for your construction business, it’s crucial to have a skilled team of accountants. SD Associates, P.C., boasts New Hope construction accountants with over 35 years of outstanding service delivery. Our team possesses the knowledge and proficiency required to guide you through the intricacies of financial management and accounting within the construction sector.

Our team of skilled professionals is equipped to support your business in a multitude of ways, from maintaining precise bookkeeping and payroll records to assisting with contract negotiations. We understand the distinctive requirements of your construction enterprise and have tailored our services accordingly, including tax preparation, budgeting, and financial planning. Additionally, we offer consulting services to aid you in formulating a cost-effective strategy for enhancing profit margins. Allow us to help your business thrive.

Construction Accounting vs. Standard Accounting

While accounting services are necessary for any business, construction companies have unique requirements that demand specialized expertise in construction accounting. At SD Associates, P.C., we offer comprehensive construction accounting services customized to meet the industry’s specific demands.

Long-Term Production Cycles

Most construction projects take weeks, months, or even years to complete. This creates a much longer production cycle than most other businesses experience and can make it harder to accurately track profits. That’s why it is critical to keep track of the various accounts throughout this process. Our construction accountants in New Hope have the skills and knowledge needed to manage long-term project cycles of all sizes, ensuring accuracy and timely financial reporting.

Tracking Multiple Jobs

Numerous construction companies employ sizable teams that handle multiple projects concurrently. Monitoring critical metrics such as revenue, expenses, and workforce can present difficulties, but our team is proficient in this setting. We furnish exhaustive financial statements that exhibit the profitability of each task and enable construction firms to effectively manage their undertakings.

Variety of Services

The array of services offered by construction companies ranges from general contracting to specialized subcontracting. Each of these services has its distinct financial necessities, underscoring the significance of construction businesses having an accounting team that can cater to their specific requisites. At SD Associates, P.C., we extend diverse construction-specific accounting services, including but not limited to job cost estimation and analysis, cash flow administration, progress billing, accounts receivable/payable, and others.

COGS vs. Overhead

In construction accounting, a critical consideration is the differentiation between COGS (cost of goods sold) and overhead costs. COGS encompasses materials, labor, and other direct expenses linked to a specific project, whereas overhead costs comprise indirect expenditures such as rent, utilities, equipment maintenance, and others. For instance, insurance expenses may be categorized as overhead if they cover multiple jobs, or as COGS if they pertain solely to a particular project. With our expertise, we can precisely differentiate between COGS and overhead costs to guarantee accurate financial reporting.

Why Work With a Construction Accountant

Having a competent accountant is critical for a construction company to handle their finances effectively. Our construction accountants in New Hope possess proficiency in all facets of financial management for construction enterprises, ranging from bookkeeping, tax planning, and preparation, to payroll compliance and other related services.

SD Associates, P.C. comprehends the unique obstacles that accompany running a construction enterprise, such as variable cash flows, fluctuating costs and margins, intricate contracts, and other related factors. Our aim is to assist you in enhancing your financial management and ensuring compliance with all relevant regulations, enabling you to concentrate on your construction company.

Construction Accounting FAQs

What is construction accounting?

The practice of managing and reporting financial information relating to building projects is referred to as construction accounting. Construction accounting is keeping track of a project’s expenses, revenues, assets, liabilities, and other comprehensive information in order to optimize profits while staying under budget.

What is the importance of construction accounting?

Construction accounting is critical in the successful completion of a project. This type of accounting helps contractors to monitor budget and cash flow while accurately tracking their labor costs, materials purchased, and other expenses associated with the project. It also ensures that all taxes are paid and that any applicable payment claims are made in a timely manner. Without construction accounting, there is a risk of overspending on projects, leading to potential financial losses.

How does working with subcontractors affect my finances?

Working with subcontractors is a common practice in the construction industry. When working with subcontractors, it is important to keep track of their payment and invoice records for accurate budgeting purposes. This helps you ensure that all payments are tracked correctly and that any applicable taxes or payments claims are made on time. Additionally, knowing your subcontractors’ costs upfront will help you accurately plan for the overall cost of the project. Lastly, by knowing the accurate costs associated with each subcontractor, you will be able to better negotiate favorable rates and payment terms.

Do construction companies have to use GAAP?

Generally accepted accounting principles (GAAP) are the standards used to prepare and present financial information. Construction firms may wish to adhere to GAAP in order for their clients and investors to be able to accurately understand the company’s operations and profitability.

Why should I choose SD Associates, P.C.?

SD Associates, P.C. has over 35 years of experience working with clients in the construction industry. Our team of experienced construction accountants is well-versed in the complexities of this type of accounting, and we can help you ensure that your finances are properly managed. We know how to integrate cutting-edge technology and processes with traditional methods for maximum efficiency and accuracy.

Contact Our Construction Accountants in New Hope Today

At SD Associates, P.C., our construction accountants in New Hope offer a comprehensive suite of construction accounting services. Our skilled and proficient team can assist you with an array of services, including subcontractor compliance, cost reports, forecasting, and other related services. Schedule your consultation today by calling us at (215) 517-5600.