Construction is a complicated business. Companies often have multiple projects, simultaneous projects, distinct job beginnings and endings, seasonal ebbs and flows, local regulations, and diverse labor markets, to name a few–and that’s just the more predictable stuff.
You might be able to handle bookkeeping, payroll, and tax requirements when just starting. Managing one or two projects and sets of workers can be a manageable juggling act at first.
However, as business ramps up, you could quickly become bogged down with documentation and the legal aspects of running a construction business. It would be easy to begin neglecting accounting elements as you prioritize your projects, or vice versa.
Incorrect bookkeeping can cost you. You might miscalculate contract bids and lose out on money or incorrectly pay employees and lose money. It could cost you your reputation as an employer or business.
Accounting mistakes could undo what you’ve worked so hard for. Wrong money moves could land you in hot water with the IRS. Proper accounting can mean the difference between being able to retire comfortably or not.
If you own a construction business, you owe it to yourself, your family, your employees, and your community to thrive. You help make Charlotte and its suburbs a great place to live, improving the quality of life and our area’s attractiveness to entrepreneurs and those looking to call it “Home.”
Specialized bookkeeping services in Charlotte, NC, can make all the difference. Construction accountants, knowledgeable in your industry and area, are the key to your business success. Read on to find out more.
Budgetary Needs
Nailing down a budget is very complex for a construction business. There are so many moving parts, unknowns, and unpredictables.
A budget is essential, though. Keeping adequate and accurate records can help you with cash flow. You’ll better understand which lucrative projects to accept and which non-profitable ones to avoid.
A construction bookkeeper can better document your transactions for superior budgeting.
Expense-Tracking Needs
There’s no simple, one-size-fits-all equation for calculating construction profits. You have both direct and indirect expenses relating to your projects. Direct expenses closely relate to your project and are easier to pinpoint. Indirect costs are more hidden.
A knowledgeable construction CPA can help you document all your expenses, including the often-overlooked indirect ones. You’ll get a better picture of your profits.
Technological Needs
You’re no stranger to having the right tools for the job. Proper accounting software and technology can do much of the heavy lifting. What may have taken hours during your work week can turn into just minutes with the right tool.
Construction CPAs can help you find the software or technology that fits your situation. You gain time that you would have spent researching and implementing new tech.
A CPA for your industry can also take duties off your hands. They could have the right software at their fingertips, saving you the time and hassle of dealing with the task.
Tax Needs
Your many projects and diverse workforce can complicate your tax requirements. You want to ensure your taxes are correct. You don’t want to overpay and reduce your profit, and you don’t want to underpay and get in the IRS’s crosshairs.
A construction CPA can help you keep required tax documents organized–nothing more or less than what you need. They’ll keep you and your filings compliant with the latest tax regulations. You can feel at ease, knowing you’re in good hands with a tax professional.
Bidding Needs
Your livelihood thrives on creating competitive and winning bids. You don’t work or earn money if you don’t land a contract.
Understanding your expenses helps you create winning bids and earn money that exceeds your expenses. It enables you to communicate adequate timelines, too.
Precise records help you win more projects. A construction CPA can keep track of your records, have them in pristine order, and be readily available. After all, you and your potential client’s time is of the essence.
Payment Needs
Payments from your clients roll in at different times based on contract terms. Those terms may vary per type of project or client.
As one project rolls into others, losing track of who owes what is easy. Staying on top of due or overdue accounts can be highly challenging.
A construction CPA can help you collect money on time. They can put measures in place to mail invoices and remind you which clients to follow up with for payment.
Investment Needs
As your business grows, you’ll need additional funding to support changes. Potential investors will want to see your financial records to determine whether or not your business is a lucrative investment for them.
A construction accountant will have the updated and accurate records you need. They can also create special documentation for investor consideration and advise you on profitable terms.
The Construction CPA Advantage
The construction industry is very unique. Particular accounting principles apply to this industry and no one else due to the nature of beginning and ending jobs, working in multiple jurisdictions, hiring from various labor markets, purchasing inventory, and job-costing oddities.
A specialized construction CPA can help you:
- Get a handle on your budget and cash flow
- Lower your expenses
- Win job bids and investors
- Understand your budget needs
- Improve your strategies and decisions
- Get your taxes right
You don’t want a generic accountant handling all the nuances of the construction industry. You want someone with experience in construction accounting.
