The CPA Construction Companies Trust

Accounting Firm Serving the Tri-State Area Since 1983

Construction Accountants in Warminster

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 Warminster 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 all businesses require accounting services, construction companies have unique needs that necessitate specialized knowledge in construction accounting. At SD Associates, P.C., we deliver a comprehensive range of construction accounting services that are specifically tailored to meet the demands of the industry.

Long-Term Production Cycles

Construction projects typically span several weeks, months, or even years, resulting in a more extended production cycle than most other businesses. This lengthy cycle can make it challenging to accurately track profits, making it crucial to monitor various accounts throughout the process. Our construction accountants in Warminster possess the expertise and knowledge necessary to oversee long-term project cycles of any scale, guaranteeing accuracy and timely financial reporting.

Tracking Multiple Jobs

Many construction companies enlist large crews that work on several projects at the same time. Tracking statistics like income, costs, and labor can be challenging but our team is well-versed in this environment. We provide comprehensive financial reports that show the profitability of each job and help construction companies stay on top of their projects.

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

A crucial consideration in construction accounting is the differentiation between COGS (cost of goods sold) and overhead costs. COGS pertain to materials, labor, and other direct expenses linked to a specific project, whereas overhead costs refer to indirect expenditures like rent, utilities, equipment maintenance, and so on. Take insurance costs, for instance, they can be categorized as overhead when they cover multiple jobs, or COGS when they solely apply to a particular project. With our expertise, we can precisely differentiate between COGS and overhead costs, ensuring accurate financial reporting.

Why Work With a Construction Accountant

It is essential for a construction company to have the right accountant to oversee and manage their finances. Our Warminster construction accountants are experts in all aspects of financial management for construction companies, including bookkeeping, tax planning and preparation, payroll compliance and more.

At SD Associates, P.C., we recognize the distinct challenges that arise when managing a construction business, including volatile cash flows, fluctuating costs and margins, intricate contracts, and more. We are committed to aiding you in effectively managing your finances and ensuring compliance with relevant laws and regulations, enabling you to concentrate on growing 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 Warminster Today

At SD Associates, P.C., our construction accountants in Warminster provide a comprehensive array of construction accounting services. We have a skilled and knowledgeable team that can assist you with subcontractor compliance, cost reporting, forecasting, and other related services. Contact us today at (215) 517-5600 to book your consultation and access our expert assistance.