Your Go-To Construction Company CPA

CPA Firm Serving the Tri-State Area Since 1983

Construction Accountants in Germantown

Running a construction company is a challenging endeavor. From overseeing subcontractors and tracking materials shipments to ensuring timely project completion, construction businesses are confronted with numerous obstacles. When financial management and taxes are added to the mix, it can swiftly become overwhelming. This is where our construction accountants in Germantown come in to provide assistance.

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

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

Few construction projects can be completed in a day, or even a month. Most take months, and some projects can take years to complete. As such, it can be challenging to properly calculate profits in the short-term, and to plan for future projects. A construction accountant must understand the long-term production cycle that comes with such an undertaking and be able to manage accounting processes on 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 Germantown 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 with prior experience in serving clients in the construction industry is crucial. Our construction accountants in Germantown 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 Germantown Today

Are you ready to obtain the financial guidance and advice required for your construction business? Look no further than SD Associates, P.C. Our experienced construction accountants in Germantown possess extensive knowledge of all financial management aspects related to the industry. Our team will guide you throughout the process, from developing accounting systems to offering tax planning services.

Our construction accountants offer a comprehensive range of services that aid in achieving your financial objectives. We customize our solutions to cater to the particular requirements of each client and provide one-on-one guidance to ensure you obtain the most value from our partnership. Schedule your consultation with our team today by calling (215) 517-5600.

You might also be interested in:

• Business Tax Services Germantown
• General Contractor Accountants Germantown
• Healthcare Accountants Germantown
• Legal Accountants Germantown
• Real Estate Accountants Germantown