Construction

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 Prep & 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.

Construction Leader

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.

Full Bio