The Construction Accountants You Can Trust

Top CPA Serving the Tri-State Area Since 1983

Construction Accountants in Montgomery County

Running a construction company can be an intricate process. Add managing finances on your to-do list, and you’re looking at a whole new level of complexity. At SD Associates, P.C. our Montgomery County construction accountants understand construction accounting and can provide the specialized expertise you need to manage all the financial aspects of your business. Client satisfaction is always a top priority for us and our Google reviews reflect that!

We understand the needs of our clients in this ever-evolving industry and strive to provide them with the most comprehensive services available. Our experienced construction accountants are dedicated to helping businesses stay ahead of their accounting needs and remain compliant with applicable laws. We specialize in a variety of services, including bookkeeping, payroll management, financial statement preparation and analysis, tax planning and preparation, consulting, budgeting and forecasting. Our staff is highly experienced in construction accounting matters, so you can rely on us to provide up-to-date advice on the best strategies for success.

Construction Accounting vs. Standard Accounting

Accounting is essential for any business, but construction companies have different needs than other businesses when it comes to accounting. It is necessary for construction companies to have specialized accounting services and resources in order to succeed.

Long-Term Production Cycles

Most construction projects take weeks, months, or even years to finish – and, as a result, receive payment. Without a consistent mode of payment to rely on, it can be hard for construction companies to accurately plan their finances. That’s why construction accounting firms such as SD Associates, P.C. provide insight into the long-term production cycles of the construction industry. We understand how to plan and track expenses so that our clients can stay financially afloat over the course of a lengthy project.

Tracking Multiple Jobs

Many construction companies work on multiple jobs at once. To make sure that each job is being handled correctly, construction accountants are essential. SD Associates, P.C. can provide valuable insight into the financial aspect of multiple projects so that our clients stay on track and within their budgets. We specialize in tracking project costs, labor costs, materials expenses, overhead costs, and more to ensure that all expenses are accounted for.

Variety of Services

Construction companies offer a large range of services, from engineering to painting. It is important for construction accountants to be well-versed in all of these services and the associated expenses. At SD Associates, P.C., we provide a variety of accounting services that are tailored to our clients’ needs. We can assist with job cost tracking, budget preparation and analysis, cash flow management, and more.

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 construction project, while overhead costs are general expenses that apply to all projects. It is important to accurately differentiate between these two types of costs in order for the financial performance of a project to be reported correctly. For example, if a construction company reports overhead costs as COGS, the reported profit of a project could be significantly overstated.

Why Work With a Construction Accountant

It is essential for a construction company to work with a trained and experienced accountant who understands the construction industry. Construction accounting is a specialized field that requires knowledge of both tax laws and contractor-specific financial issues. When you work with an accountant specifically qualified in construction, you can rest assured that your financial needs are met and understood.

SD Associates, P.C. has a team of Montgomery County construction accountants who are prepared to help you manage and grow your business. Our construction accountants have the expertise and experience to provide comprehensive accounting solutions for contractors, developers, engineers, builders, and other construction companies.

Construction Accounting FAQs

What is construction accounting?

Construction accounting is a specialized field of accounting related to the management, tracking, and reporting of financial data related to construction projects. This type of accounting focuses on ensuring that all costs associated with a project are monitored and reported accurately so that the final cost can be properly estimated.

 

What is the importance of construction accounting?

Construction accounting is essential in allowing construction companies to effectively manage and control their finances. With accurate tracking, project managers can make informed decisions about budgets, timelines, and resources that will help ensure the completion of projects on time and within budget. Construction accounting also helps protect contractors from potential risks associated with overspending or financial mismanagement.

 

How does working with subcontractors affect my finances?

Working with subcontractors can add complexity to your construction accounting. Proper tracking of subcontractor costs is essential in order to ensure that you stay within budget and receive the most value from the services provided. It is important to accurately monitor payments, invoices, and other financial data related to your subcontractors in order to avoid potential disputes or overspending.

 

Do construction companies have to use GAAP?

Generally accepted accounting principles (GAAP) are the standards used for financial reporting in the United States. Companies operating in America are required to adhere to GAAP standards in order to file taxes accurately and create financial statements that are accepted by governing bodies. Construction companies should consult with an experienced accountant to ensure that their financial records meet the necessary GAAP requirements.

 

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 construction accountants in Montgomery County understand the difficulties of this sort of accounting and can assist you in ensuring that your finances are correctly managed. We understand how to combine cutting-edge technology and procedures with time-tested methods for optimal efficiency and precision.

Contact Our Construction Accountants in Montgomery County Today

If you are looking for a construction accountant in Montgomery County, contact SD Associates, P.C. today at (215) 517-5600. Our team of trained and experienced accountants can help you manage your finances and ensure that all of your projects remain on budget. We are committed to providing the highest quality of service and helping you reach your financial goals. Contact us today to schedule your consultation.