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Construction Accountants in Chestnut Hill

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 Chestnut Hill are here to alleviate that burden.

Our professionals at SD Associates, P.C. specialize in providing comprehensive accounting services customized to meet the unique needs of construction businesses. From taxation and payroll processing to managing accounts receivables, our experienced staff has the expertise to provide the guidance and support your business needs to thrive. From large-scale commercial job sites to smaller home developments, we can help you navigate the process of financial management and reporting. We take the time to understand your business’s individual needs and goals, providing you with tailored solutions that ensure your success.

Construction Accounting vs. Standard Accounting

While every business needs accounting services, construction company accounting is unique due to the sheer number of participants and payments associated with a construction project. Working with an experienced construction accountant helps ensure your accounting processes are running efficiently, accurately and in compliance with applicable laws.

Long-Term Production Cycles

The majority of construction projects are not completed in a day, and many take months or even years to finish. This makes it difficult to accurately calculate short-term profits and plan for future projects. A construction accountant must possess a thorough understanding of the long-term production cycle that accompanies such endeavors and be capable of managing accounting processes on a timeline that meets all necessary deadlines while adhering to GAAP compliance.

Tracking Multiple Jobs

Construction companies often manage multiple projects simultaneously and must track the costs associated with each project. They also need to compare revenues from one project against the costs of another project and monitor all payments made to accurately calculate profits. A construction accountant in Chestnut Hill can establish an organized system that facilitates the 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

An essential aspect of construction accounting is distinguishing between COGS (cost of goods sold) and overhead costs. COGS include the direct costs of materials and labor used for a particular project, while overhead encompasses administrative expenses such as utilities and office supplies. For instance, the cost of lumber used in a construction project would be categorized as COGS, while the cost of office supplies utilized during the project’s duration would be classified as overhead. With the aid of an experienced construction accountant, you can establish a system that accurately calculates and tracks both COGS and overhead expenses.

Why Work With a Construction Accountant

Collaborating with a Philadelphia CPA firm with prior experience in serving clients in the construction industry is crucial. Our construction accountants in Chestnut Hill have worked with construction companies of all sizes throughout the region, establishing us as a trusted source of expert financial guidance. We possess extensive knowledge of the latest accounting technologies, construction industry regulations, and best practices. Our team will assist you in optimizing your profitability while ensuring compliance with applicable laws and regulations.

We also offer impartial advice aimed at attaining your specific objectives. Whether you require help with cash flow management, contract bidding, budgeting and forecasting, compliance monitoring, or other financial services, we are ready to aid you.

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 Chestnut Hill Today

Are you prepared to receive the financial guidance and advice necessary for your construction business? SD Associates, P.C. is available to provide assistance. Our proficient team of construction accountants in Chestnut Hill has comprehensive knowledge of all aspects of financial management for the industry. Whether it’s creating accounting systems or offering tax planning services, our team is committed to assisting you every step of the way.

Our construction accountants provide comprehensive services to help you meet your financial goals. We tailor our solutions to meet the specific needs of each client and offer one-on-one advice to ensure you get the most from your partnership with us. Contact our team today at (215) 517-5600 to schedule your consultation.

 

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