Construction CPA Services

Specialized Accounting Solutions for the Construction Industry

The construction industry faces unique financial challenges, from managing overhead allocations to ensuring accurate job cost estimates. Our team understands these complexities and offers specialized accounting solutions that address your critical financial needs. Whether you operate on a cash basis or use the percentage of completion method, we provide the expertise to help you maintain lines of credit, secure bonding, and meet accounting requirements for construction contracts.

  • Audited or reviewed financial statements
  • Job cost and work-in-progress reporting analysis
  • Tax forecasts and planning
  • Income tax and personal property tax filings
  • Consulting meetings with bankers and bonding agents
  • Debt structuring
  • Insurance, bonding, and risk management analysis

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Specialized CPA Services for Construction Companies

Managing a construction business comes with financial complexities—overseeing project costs, managing overhead allocations, and maintaining cash flow while staying compliant with ever-changing regulations. Our CPA firm provides tailored financial solutions specifically designed for the construction industry, ensuring that your business meets compliance standards and remains financially healthy for the long term.

Audited and Reviewed Financial Statements

Accurate financial statements are key to securing bonding, maintaining lines of credit, and establishing credibility with stakeholders. We deliver both audited and reviewed financial statements that meet the highest accounting standards, reflecting your true financial position. Whether you’re using the percentage of completion method or cash basis accounting, we ensure your financials reflect project profitability, job progress, and overhead allocation.

  • Percentage of Completion Method: Essential for long-term projects to accurately recognize revenue and costs.
  • Overhead Allocation: Optimizing overhead allocation to avoid skewed financials and improve profitability.

Optimizing Job Costing and WIP Reporting

Precision in job costing is vital for profitability. Our detailed Work-in-Progress (WIP) reporting ensures your financial statements align with project timelines, offering a clear view of cost allocations, potential overruns, and underbilling. This reporting is essential not just for internal management but also for bonding agents and lenders who need accurate job performance insights.

  • Underbilling and Overbilling: Identifying discrepancies between work completed and billing to manage cash flow effectively.
  • Cost Variance Analysis: Tracking and resolving cost overruns to protect margins and forecast more accurately.

Strategic Tax Planning for Contractors

Tax planning in construction requires navigating the complexities of cash basis accounting for tax purposes versus accrual basis reporting for financial statements. Our tax strategies are tailored to maximize deductions like Section 179 expensing and the Domestic Production Activities Deduction (DPAD). We ensure that your tax strategies are proactive, reducing your liability while maintaining compliance. Additionally, we address multi-state tax challenges to ensure you’re compliant across jurisdictions.

  • Section 179 Expensing: Immediate deduction of equipment costs to improve liquidity.
  • Multi-State Tax Compliance: Managing tax obligations across states to reduce risks of audits and penalties.

Strengthening Relationships with Bankers and Bonding Agents

Your ability to secure financing and bonding depends heavily on presenting strong, accurate financial statements. We work closely with you to ensure your financials meet the underwriting requirements of lenders and bonding agents. By presenting clear, reliable financials, we help strengthen your financial relationships, enabling you to secure higher bonding capacity and better financing terms.

Debt Structuring and Risk Management

In a capital-intensive industry like construction, managing debt effectively is critical. We help you optimize debt structuring to secure favorable interest rates and repayment terms, ensuring your business maintains sufficient liquidity for operations and growth. Additionally, our risk management services help mitigate financial risks like cost overruns, regulatory changes, and project delays, protecting your business’s long-term stability.

  • Refinancing Strategies: Lowering interest rates and extending terms to maintain cash flow.
  • Risk Mitigation: Protecting your business from unforeseen financial disruptions through comprehensive risk management.

Maximizing Construction-Specific Tax Benefits

Our team specializes in construction-specific tax benefits, helping you reduce your tax burden through strategies like accelerated depreciation and Section 1031 exchanges for real estate. These benefits allow you to reinvest savings back into your business, facilitating growth and ensuring long-term competitiveness.

  • Accelerated Depreciation: Taking advantage of bonus depreciation to reduce taxable income on equipment purchases.
  • 1031 Exchanges: Deferring capital gains taxes when reinvesting in new construction properties.

Comprehensive Construction Accounting Support

From job costing to tax planning and debt management, our CPA firm offers a comprehensive range of services tailored to the unique needs of construction companies. Our goal is to provide the financial guidance and expertise that positions your business for success—so you can focus on building projects and expanding your business with confidence.

Frequently Asked Questions

What is Work-in-Progress (WIP) reporting, and why is it essential for my construction business?
How can the percentage of completion method benefit my construction business for tax and financial reporting?
What are the key tax benefits available to construction companies?
How can I optimize job costing to improve profitability?
How do you help construction companies manage multi-state tax obligations?
How can I structure my debt more effectively to support my construction business?
What strategies can you help me implement to reduce my tax liability on real estate transactions?

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Brian Van Camp, CPA, MTax

Managing Partner, Director of Tax Strategy

Brian’s passion for developing and implementing business and tax strategies has been instrumental to many businesses and individuals during his tenure at Linked Accounting. Business owners regularly seek out his advice on tax planning and audit matters, commercial lending, and business acquisition and sale transactions. When new tax laws are passed, you can be certain Brian will have read the law and developed tax strategies to help our clients make good use of new provisions of the Tax Code.

Jacob Martin

Partner

Above all, Jacob cares about the relationship with and success of his clients. They are not alone in navigating a complicated business and tax world. He thrives and is happiest when a client calls with a problem and together they solve it. Consulting and implementing strategies to reduce tax exposure provides many opportunities for Jacob to gain valuable insights that prove valuable to his clients.

Construction CPA Services

Specialized Financial Solutions for Contractors

In the construction industry, financial challenges are unique. Our team specializes in construction accounting, providing expert guidance to help your business grow while ensuring compliance with industry regulations. Here’s what sets us apart:

  • Industry Expertise: We understand construction-specific accounting methods like the percentage of completion method, job costing, WIP reporting, and overhead allocation, ensuring accurate profitability and project performance.
  • Bonding and Financing Support: We help you secure bonding and credit by ensuring your financials meet the exact standards required by bonding agents and bankers, improving your bonding capacity and financing terms.
  • Risk Management: We provide strategies to safeguard your business from financial disruptions, such as project delays or cost overruns, protecting your cash flow and long-term stability.
  • Maximizing Tax Benefits: Our knowledge of construction tax strategies, including Section 179 expensing, accelerated depreciation, and 1031 exchanges, ensures you’re capturing all available tax savings to reinvest in your business.

With specialized experience in construction accounting, we deliver tailored financial solutions that help you navigate the complexities of your industry and achieve long-term success.

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