Construction Accounting Services for the Greater Seattle Area

Q: How is construction accounting different?

Excellent question! With construction you want a specialized CPA because construction features myriad differences in how it generates income. For instance, change orders can make a tremendous difference on your company's profits, income, and forecasts. In addition, given customer deposits, turnover, and mitigating supply factors, it can be wildly different.

Q: What type of accounting is used in construction?

Construction is tricky especially since jobs can go on for longer than the fiscal term allotted. While the two main forms of accounting are cash-flow and accrual, both have limitations with regards to construction. Cash basis makes it difficult to forecast as there tends to be large deposits all at once whereas accrual is more methodological, but difficult to capture late payments or interference from other means. Two ways construction companies differ is their PCM (or Percentage of completion method) which measures the total amount in and the total amount out for the fiscal term. Meanwhile, the CCM (or completed-contract method), does not account for projects until they're completed. The latter tends to be useful for short-term contracts, while the former is more of a long-term deal.

Q: What costs can be expensed during construction?

Generally, you can expense things like permit and license fees, worker salaries and software (or development costs). You can also expense security measures (alarms and locks), in addition to consulting and procurement costs.

To say the Greater Seattle Area is under construction is an understatement. From soaring skylines to intricate infrastructure, the region is a hub for innovation and growth. Whether you’re a contractor, subcontractor, or building your own firm, partnering with a CPA specializing in construction is crucial. We help you navigate tight profit margins, ensure accurate financial analysis, and provide proactive solutions to keep projects running smoothly and clients satisfied.

Why Choose a CPA Specializing in Construction?

A construction-focused CPA does far more than just file your taxes. They bring deep expertise in the industry, with a particular understanding of the Pacific Northwest market. With our guidance, you’ll have the tools to optimize costs, streamline operations, and make strategic decisions with confidence.

Consider these benefits:

We can pinpoint cost-saving opportunities and improve profit margins;
We can quickly perform a cost analysis to refine your strategy;
We can evaluate the financial impact and recommend the best course of action.

An experienced construction CPA ensures your funds are allocated effectively, empowering your business to grow while building a strong foundation for the future.

Tailored Services for Construction Businesses

Our comprehensive suite of services is designed to address the unique challenges of the construction industry:

Detailed Analysis of Insurance Coverage: Evaluate policies to ensure optimal coverage while minimizing costs.
Strategic Business Planning: Craft actionable plans for growth and profitability.
Cost Segregation: Maximize depreciation deductions on property-related costs.
Mergers and Acquisitions: Facilitate smooth transitions during business transactions.
Business Valuation: Accurately assess the value of your company.
Claims Dispute Resolution: Expert support to navigate and resolve disputes.
Bookkeeping: Stay organized and compliant with precise financial records.
Tax Preparation and Planning: Strategize for optimal tax outcomes.
Cash Flow and Cost Analysis: Monitor and manage financial health effectively.
Contractor Pre-Qualification: Prepare for opportunities with thorough pre-qualification services.
Regulatory Compliance: Ensure adherence to federal, state, and local regulations.

Working with us means more than just crunching numbers—it’s about leveraging financial expertise to foster transparent communication and build lasting relationships with clients, contractors, and stakeholders.

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Expert Accounting for Construction, Architecture, and Engineering

In construction, architecture, and engineering, accounting isn’t one-size-fits-all. We tailor our services to your business model, helping you decide between cash method accounting or accrual method accounting to suit your needs.

Tax Planning for Construction Professionals

Make the most of your tax dollar with industry-specific deductions and credits:

Clean Energy Manufacturing Credits: Reduce taxes with credits for investments in clean energy technologies.
Auto Deductions for Construction Engineering: Deduct vehicle-related expenses with the Standard Mileage Deduction or Actual Expense Method.
- Standard Mileage Deduction: Includes business-related travel to job sites, suppliers, or other essential locations.
- Actual Expense Method: Covers costs like gas, repairs, and maintenance for business use.
Home Office Deductions: Claim deductions for dedicated office spaces used as your primary place of business, client meeting area, or inventory storage.
Domestic Production Activities Deduction (DPAD): Applicable to architects, engineers, and contractors engaged in domestic production.

Frequently Asked Questions

Q: How is construction accounting different?
A: Construction accounting is unique because of factors like change orders, customer deposits, and job turnover. Specialized CPAs understand these intricacies and help forecast and manage income accurately.

Q: What type of accounting is used in construction?
A: Construction businesses often use:

Percentage of Completion Method (PCM): Tracks income and expenses over time for long-term contracts.
Completed Contract Method (CCM): Records income and expenses only when projects are completed, ideal for short-term contracts.

Q: What costs can be expensed during construction?
A: Expenses typically include permit and license fees, worker salaries, software or development costs, security systems, consulting fees, and procurement costs.

We’ve proudly supported construction companies across the Pacific Northwest with the tools and strategies they need to succeed.
Contact us today to start building a solid financial foundation for your business!

Phone: 1-425-483-6600
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