Accounting built for contractors.

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.