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Construction Accountants in Mt Airy

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 Mt Airy come in to provide assistance.

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

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

Numerous construction companies handle multiple projects concurrently and are required to track the expenses associated with each job. They also need to compare revenues from one job against the cost of another and keep track of all payments made to accurately calculate profits. A construction accountant in Mt Airy can create an efficient system that enables proper tracking of expenses, payments, and profits across various channels.

Variety of Services

Construction companies offer a wide variety of services, from framing to plumbing, and a construction accountant must be familiar with each of them in order for the company’s accounting process to run smoothly. An experienced construction accountant can help you create an organized system that tracks costs associated with each type of service, ensuring accuracy when calculating profits and losses.

COGS vs. Overhead

A crucial aspect of construction accounting is distinguishing between COGS (cost of goods sold) and overhead costs. COGS encompasses the direct expenses linked with the materials and labor utilized for a specific project, while overhead includes administrative expenses like utilities, office supplies, and so on. For instance, the expense of the lumber used in a construction project would be regarded as COGS, while the cost of office supplies used during the project would be considered overhead. An experienced construction accountant can assist in establishing an organized system that precisely 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 Mt Airy 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 Mt Airy 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 Mt Airy 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 an extensive range of services to help you achieve your financial objectives. We customize our solutions to fulfill the specific requirements of each client and provide personalized advice to guarantee you receive maximum benefit from our partnership. Schedule your consultation with our team today by calling (215) 517-5600.

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