Your Go-To Construction Company CPA

CPA Firm Serving the Tri-State Area Since 1983

Construction Accountants in Philadelphia

Running a construction company is no easy task. Add managing your finances on top of that, and the workload can get overwhelming fast. That’s where our team at SD Associates, P.C. can help. As the leading construction accountants in Philadelphia, we take a personalized and comprehensive approach to accounting services for the construction industry. Our qualified professionals understand the unique financial needs of this industry.

We provide a full-suite of accounting services for construction companies of all sizes, from bookkeeping and tax filings to cash flow optimization and more. We are dedicated to helping you keep your finances in order so that you can focus on managing the other aspects of your business. With our help, you’ll be able to take control of your financial situation and plan for future success.

Construction Accounting vs. Standard Accounting

Every business has the same end goal when it comes to finance: improve the bottom line. When it comes to accounting, however, the construction industry has some additional challenges that require a specialized approach. That is why it is important to work with construction accountants who understand these unique challenges and how they impact your business.

Long-Term Production Cycles

Most construction companies operate on a project-based model, which requires careful tracking of expenses and income from each project. This is in contrast to standard businesses that bill customers on a regular basis. In addition, many construction projects take place over long periods of time, making it difficult to accurately prepare for fluctuations in income and expenses. Our team at SD Associates, P.C. specializes in long-term analysis for the construction industry to ensure that your financial situation is stable and secure throughout the life of each project.

Tracking Multiple Jobs

In the construction industry, it’s not uncommon for a business to be working on multiple jobs at once. This requires an accountant to be able to keep track of multiple invoices, contracts, and payments. It is important to have an organized system in place that allows you to easily switch between projects without losing any valuable financial information. With our experience in the construction industry, we can provide you with a comprehensive and organized system to ensure that all your financial data is accurate and up-to-date.

Variety of Services

Construction companies offer a wide range of services, including general contracting, subcontracting, engineering and more. Each of these services requires a specialized approach to accounting that takes into consideration the unique financial needs of each type of business. At SD Associates, P.C., we provide tailored solutions for each service so that you can get the most out of your finances.

COGS vs. Overhead

Another important factor to consider when it comes to construction accounting is the difference between COGS (cost of goods sold) and overhead costs. COGS are expenses related to a particular project – such as materials, labor, and subcontractors – while overhead costs include any general expenses that all projects incur, such as rent and utilities. It can be difficult to determine which category an expense falls under. For example, some materials may be used for multiple projects. Our Philadelphia construction accountants are experienced in tracking these costs and helping you to understand where your money is going.

Why Work With a Construction Accountant

Whether you own a construction company or supervise a construction project, having a qualified accountant on your team is essential. Working with an experienced construction accountant can help you stay organized and track the progress of each project more effectively, as well as protect you from any potential legal liabilities.

A good accounting system allows you to anticipate potential problems before they arise and take proactive steps to protect your financial security. This way, you can spend less time sorting through records and spend more time focusing on what’s important: running your construction company.

Construction Accounting FAQs

What is construction accounting?

Construction accounting is a specialized form of accounting that focuses on the unique needs of the construction industry. It involves tracking income and expenses from each project, managing cash flow, optimizing profitability, and more. At SD Associates, P.C., we provide a full suite of accounting services tailored to the construction industry, including bookkeeping, tax filings, and more.

 

How does working with subcontractors affect my finances?

Subcontractors can have a major impact on your business’s finances. It is important to keep track of their payments, expenses, and other financial information in order to ensure that you are maximizing profits from each project. SD Associates, P.C. has experience working with subcontractors and can help you manage the financial aspects of your projects.

 

Do construction companies have to use GAAP?

Yes, all United States businesses have to use Generally Accepted Accounting Principles (GAAP). These regulations must be followed when preparing financial statements and filing taxes in order to ensure accuracy and consistency. At SD Associates, P.C., we are experienced in understanding and applying GAAP to the construction industry so that your finances are in compliance with all applicable laws and regulations.

 

How can construction accountants help me save money?

Construction accountants have a deep understanding of the expenses associated with the construction industry and can help you to identify areas where you can cut costs or maximize profits. At SD Associates, P.C., our team will work closely with you to analyze your financial data and provide insight into how to best utilize your resources for maximum savings.

Contact Our Construction Accountants in Philadelphia Today

At SD Associates, P.C., we specialize in construction accounting and are experienced in helping our clients navigate these unique challenges. Our Philadelphia construction accountants provide accurate financial statements that allow you to easily monitor your project-based finances and ensure that everything is running smoothly. In addition, we create actionable plans to maximize cash flow, minimize taxes, and identify any potential issues before they become major problems. Contact us today at (215) 517-5600 to learn more about how we can help your construction company succeed.