Your Go-To Construction Company CPA

CPA Firm Serving the Tri-State Area Since 1983

Construction Accountants in Chinatown

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 Chinatown are here to alleviate that burden.

At SD Associates, P.C., our professionals specialize in delivering extensive accounting services customized to cater to the specific requirements of construction businesses. From tax planning and payroll processing to overseeing accounts receivables, our skilled team has the knowledge and expertise to provide the guidance and support your business needs to flourish. Whether you’re handling large-scale commercial job sites or smaller home developments, we can help you navigate the process of financial management and reporting. We take the time to comprehend your business’s distinctive needs and objectives, providing tailored solutions that guarantee your success.

Construction Accounting vs. Standard Accounting

Accounting services are crucial for every business, but construction company accounting is distinct due to the extensive number of participants and payments involved in a construction project. Engaging an experienced construction accountant can help guarantee the efficient, accurate, and legally compliant functioning of your accounting processes.

Long-Term Production Cycles

Construction projects typically span over several months or even years, making it challenging to accurately calculate profits in the short-term and to plan for future projects. A construction accountant must have a sound understanding of the long-term production cycle that comes with such endeavors and be able to manage accounting processes within a timeline that meets all necessary deadlines while remaining compliant with GAAP.

Tracking Multiple Jobs

Many construction companies have multiple projects running at once and must track costs associated with each job. They also need to compare revenues from one job against the cost of another job, and keep track of all payments made in order to properly calculate profits. A Chinatown construction accountant can create an organized system that allows for 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 experienced in serving clients in the construction industry is crucial. Our construction accountants in Chinatown have worked with construction companies of all sizes across the region, assuring you of receiving 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 can also provide objective advice aimed at achieving your specific goals. Whether you need assistance with cash flow management, contract bidding, budgeting and forecasting, compliance monitoring or other financial services, we are here to assist 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 Chinatown Today

Ready to get the financial guidance and advice you need for your construction business? SD Associates, P.C. is here to help. Our experienced team of construction accountants in Chinatown are well-versed in all aspects of financial management for the industry. From developing accounting systems to providing tax planning services, our team will assist 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.

 

You might also be interested in:

• Business Tax Services in Center City
• Business Tax Services in Chinatown
• Business Tax Services in Northern Liberties
• Business Tax Services in Old City
• Business Tax Services in Philadelphia
• Business Tax Services in Society Hill
• General Contractor Accountants in Center City
• General Contractor Accountants in Chinatown
• General Contractor Accountants in Northern Liberties
• General Contractor Accountants in Old City
• General Contractor Accountants in Philadelphia
• General Contractor Accountants in Society Hill
• Healthcare Accountants in Center City
• Healthcare Accountants in Chinatown
• Healthcare Accountants in Northern Liberties
• Healthcare Accountants in Old City
• Healthcare Accountants in Philadelphia
• Healthcare Accountants in Society Hill
• Legal Accountants in Center City
• Legal Accountants in Chinatown
• Legal Accountants in Northern Liberties
• Legal Accountants in Old City
• Legal Accountants in Philadelphia
• Legal Accountants in Society Hill
• Real Estate Accountants Center City Philadelphia
• Real Estate Accountants in Chinatown
• Real Estate Accountants in Northern Liberties
• Real Estate Accountants in Old City
• Real Estate Accountants in Philadelphia
• Real Estate Accountants in Society Hill