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.
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.
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.
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.
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.
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.
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.
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.
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.
WIP reporting is crucial because it provides an accurate, real-time picture of how your projects are progressing financially. It allows you to track the percentage of completion, actual costs incurred, and billings, so you can stay on top of your job costs. For construction companies, WIP reports are not just internal tools—they’re often required by bonding agents and lenders to evaluate your business’s financial health. By keeping your WIP reports up to date, you can avoid issues like underbilling or overbilling, both of which can negatively impact your cash flow and bonding capacity.
The percentage of completion method is a powerful tool for construction companies, particularly for long-term projects. By recognizing revenue and expenses as the work progresses, you provide a more accurate financial picture of your company’s performance. This method is often required by bonding agents and lenders, but it can create complexities when you’re reporting on a cash basis for tax purposes. We’ll help you navigate these complexities, ensuring your financial reporting and tax strategies are aligned.
Construction companies can take advantage of a range of tax benefits, including Section 179 expensing for equipment purchases, which allows you to deduct the full cost of eligible assets in the year they are placed in service. Additionally, there are opportunities for accelerated depreciation through bonus depreciation, and tax deferral strategies like 1031 exchanges for real estate transactions. Our proactive tax planning ensures you’re maximizing these benefits while remaining compliant with IRS regulations.
Accurate job costing is essential for understanding your true profitability on each project. We help you establish systems that track direct labor, materials, and overhead more effectively. Many construction businesses fail to allocate overhead properly, which can lead to inaccurate job cost estimates and hurt your margins. By implementing better job costing practices, you’ll be able to price your projects more accurately and manage costs more effectively throughout the project lifecycle.
Navigating multi-state tax obligations can be complex for construction companies that operate across state lines. We provide guidance on state income tax, sales tax, and use tax compliance for each jurisdiction where you’re working. Our approach ensures you’re meeting your tax obligations without overpaying, and we help you manage potential nexus issues that could arise when performing work in multiple states.
Proper debt structuring is essential for maintaining liquidity and managing cash flow, especially in the capital-intensive construction industry. We analyze your existing debt and provide recommendations on how to optimize it, whether through refinancing at lower rates, adjusting repayment terms, or consolidating debt to improve cash flow. By structuring your debt strategically, you’ll have the financial flexibility to take on larger projects and invest in growth opportunities.
For construction companies involved in real estate, minimizing tax liability on property transactions is key to preserving profits. We can assist you with 1031 exchanges, which allow you to defer capital gains taxes when reinvesting in new properties. Additionally, we help with cost segregation studies, accelerating depreciation on eligible components of real estate, which reduces your taxable income. These strategies keep more money in your business, allowing you to reinvest in future projects.
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.
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.
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:
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.