At a glance
With direct ties to the economic climate, the construction industry can often feel like a rollercoaster ride. Through the ups and downs, we can help you solve today’s problems and build for tomorrow.
Our CPAs and accountants serve as trusted advisors to construction businesses of all sizes. Business owners and independent contractors seeking advice on everything from income taxes to financing and bonding will find answers with our specialized construction accounting team.
Your reputation hinges on the quality of every job you complete. Our CPAs and construction accounting specialists are committed to helping you achieve excellence. This team offers support at every phase of the project from job costing and equipment purchasing, to contract negotiations and tax credits.
How We Can Help
Tax Preparation & Planning
Construction tax preparation involves understanding complex tax laws related to long-term contracts, revenue recognition, and cost allocations for indirect costs. Construction-specific tax strategies include utilizing different methods for revenue recognition, managing depreciation of equipment, 179D deductions, and applying tax credits.
Audit, Reviews & Compilations
Audits provide the highest level of assurance and are often required by banks, bonding companies, or other stakeholders to assess the financial health of a construction business. Reviews offer limited assurance and are less rigorous but provide bonding companies value. Compilations offer no assurance but provide users financial statements that are useful for analysis. These services are essential for obtaining surety bonds and securing financing.
Business Valuation & Projections
Business valuations help construction owners understand the worth of their business for various purposes, such as selling the company or estate planning. Accurate valuations and projections are key in making strategic decisions, including succession planning and business acquisitions.
Succession & Estate Planning
For construction companies, estate planning and succession involve navigating complex ownership structures, transferring management control, and dealing with tax implications. Key areas include:
- Minimizing estate taxes through proper structuring.
- Ensuring smooth transitions of leadership without disrupting operations.
- Valuing the company accurately for estate or gift tax purposes.
- Developing buy-sell agreements.
Job & Overhead Cost Analysis
Job costing and overhead analysis provide detailed insights into the profitability of individual projects. This allows construction companies to:
- Pinpoint underperforming projects.
- Control costs more effectively.
- Ensure that overhead is allocated properly.
- Make informed bidding decisions on future projects.
- Regular analysis helps improve profit margins and overall business efficiency.
Surety/Bonding Assistance
Surety bonds are often required on projects and can be challenging to obtain without a solid financial standing. Companies need help with surety bonds to demonstrate financial strength and reliability to the surety.
Equipment Purchase & Lease Analysis
Equipment is a significant investment in construction. Assistance with purchasing or leasing involves:
- Analyzing cost-benefit factors between buying and leasing.
- Assessing tax deductions, including Section 179 expensing and bonus depreciation for equipment purchases.
- Helping with financing options.
- Ensuring that the company’s cash flow and profitability are not compromised by major equipment investments.
Bookkeeping & Payroll
Typical bookkeeping services for construction companies include:
- Job costing and project accounting.
- Payroll management, including handling prevailing wages.
- Accounts payable/receivable tracking.
- Financial statement preparation and cash flow analysis.
- Reconciling bank accounts
Identifying R&D Tax Credits
The Research and Development (R&D) credit is a tax credit available to businesses that incur expenses for qualified research activities. This credit is designed to incentivize companies to invest in research and development by reducing their tax liability.
Research must be technological in nature, intended to develop a new or improved business component, and involve a process of experimentation related to function, performance, reliability, or quality. The research does not have to be new to the market in general, just new to the company.
Identify & Capture 179D Tax Deductions
The 179D deduction provides a tax benefit for energy-efficient building improvements. This deduction is designed to incentivize the construction and retrofitting of commercial buildings to meet high energy-efficiency standards. This deduction allows construction companies or building owners to claim deductions for designing energy-efficient systems like HVAC, lighting, and building enclosure.
Need Our Services?
Our CPAs and construction accounting experts can help you with construction cost management systems, job costs, equipment purchases, and more.
Kyle Kopren
Kyle leads the firm’s construction team and is very passionate about construction and real estate accounting. He also helps the firm stay on the leading edge of technology as a member of the IT department advisory committee.