Construction businesses — especially in Washington — are a dime a dozen, but startups are at risk. While they’re some of the most common businesses, they have a tendency to have a much shorter lifespan (according to a recent study). Because of this, construction businesses soar need someone reliable to track projects in progress, material costs, and labor costs — among a slew of other issues. It’s not easy for construction companies to properly manage their accounting needs when facing competitive pressures in bidding and running the business itself. This is why having a CPA who specializes in construction can help.
Not only will the CPA have the have expertise and knowledge in your craft, but also for your finances and accounting. Consulting the right CPA firm is pivotal to the success of your construction business.
What Is a Construction-specific CPA?
A construction CPA is a certified public accountant with experience in handling project costs, and understands how construction businesses operate. However, they can do much more beyond helping a company prepare financial statements and file local, state and federal tax returns.
Construction-specific CPAs also understand specific business concerns faced by contractors on a daily basis. This includes cost control, risk management, as well as reporting needs like work-in-progress reports or percent complete reports.
How Construction Businesses Benefit from Construction CPAs
With limited resources, figuring out how to invest them is critical to the long-term success of your construction business. CPAs can help you determine the value of short and long-term construction investments, which can help you make the best decision for your business. They can help you evaluate performance and make future projections through strategic planning to build a vision for your construction company.
2. Reduction of Construction Expenses
As the number of job sites increase in number and size, construction expenses can quickly get out of hand. In this case, you can easily lose track of how much equipment, supplies or crews are costing you. When construction CPAs apply industry expertise to your business, you will get the most from your mileage, travel time, materials and other factors.
3. Tax Preparation
Tax laws and regulations keep changing. To stay up to date on construction tax laws, you need a dedicated team of construction CPAs; otherwise, you could lose money or have increasing liability.
4. Marking the Progress of Your Company
In many cases, you will need financial statements spanning two to three years back in order to secure loans. By having a CPA certify your financial statements, you will be in a better position of presenting a consistent progress picture to other parties like financial institutions who can help your business grow.
Construction businesses are scrambling to keep up with demand in the current development boom. During these fast-paced times, you can easily let things slip through the cracks. Missing time cards, poor account management or unpaid invoices are just a few things costing construction businesses thousands of dollars each year.
Need help with accounting issues in your construction business? Consult a construction CPA today to save your company time and money as you help it grow!