Companies who choose our firm rely on competent advice and fast, accurate personnel. We provide total financial services to individuals, large and small businesses and other agencies. For more information about our construction accounting services, please fill out the contact form below.

CFO For Small Contractors & Construction Companies

• Additionally, our attorneys have designed and defended asset protection structures for some of the most successful builders in the Phoenix Valley.
• Our team of experienced tax and accounting professionals is ready to help you achieve the financial success you deserve.
• Efficiency is one of the main goals we have for our contractors, to help them accomplish more with less, and reduce the amount of tasks they have to do to run their business.
• Our accountants and tax professionals have an intimate understanding of the rules.
• Partners and managers are actively engaged with clients in delivering appropriate service.

Keeping enough cash on hand is a serious challenge in our industry, especially on longer jobs. To maintain a positive financial position, you’ll want to use progressive billings (aka progress billings). Instead of a lump sum at the end, progress payments are made in regular installments (usually monthly) as a project progresses. With this information in your accounting system, tracking things like retainage and change orders, issuing purchase orders or subcontracts, and keeping client billings on schedule becomes much easier.

Accounting & Bookkeeping

Strong bookkeeping practices are essential for any thriving construction company, and navigating the unique financial challenges of this industry is critical. Our accounting experts at Whyte CPA share some top tips to keep your construction bookkeeping on solid ground. Our Arizona accounting firm has departments to handle the various bookkeeping services. We work in a very strategic and organized fashion so that you can enjoy the perks of easy auditing. With years of experience in the field, we know the importance of general compliance when it comes to finance management.

Tax Compliance

There are four revenue recognition methods, but for the sake of this guide, we’re going to focus on the percentage of completion method (POC), which is what most contractors end up using. As one of the top accounting firms in AZ, we have established a very strategic method of bookkeeping for our clients. We have hired CPAs in Chandler AZ from some of the top B-schools in the country. This team has an experience of working with some of the biggest clients in the market.

Superior Construction Bookkeeping, PLLC

Because construction is project-based, you need a way to see how well individual projects are performing at a granular level, instead of trying to get a grip on your company’s financials from five miles above. This is where job costing comes in, allowing you to make sure each new construction job you take on is hitting all the marks. However, not every company can use it.Basically, a contractor using the cash method of accounting reports cash receipts as income when received, according to the IRS, and deducts expenses when paid. If an expense benefits you for more than one tax year, it must be spread out over the period the benefit is received.To qualify for using the cash method, your business must be considered a small business taxpayer. A small business taxpayer is a taxpayer that https://www.bignewsnetwork.com/news/274923587/how-to-use-construction-bookkeeping-practices-to-achieve-business-growth (a) has average annual gross receipts of $25 million or less for the 3 prior tax years and (b) is not a tax shelter.

Get Expert Construction CPA Support

RedHammer Arizona provides construction companies with a complete suite of financial services designed to improve operations and profitability. From detailed job costing and optimized reporting to payroll management and process automation, we deliver solutions that enable clarity and sustainable growth for your business. At Oversight Bookkeepers, we understand the unique challenges that construction contractors in face when it comes to managing their finances.

Carefree Arizona

Of course, if you want to make your life easier, construction accounting software like CrewCost will do a lot of the heavy lifting for you. To actually be effective, your cost coding system needs to be used consistently by everyone in your company. construction bookkeeping This ensures accurate and consistent data entry that will ultimately help you bid better on future projects. A surefire way to lose out on project profitability is to do work you’re not paid for. An effective change order management system is your first line of defense against this.

• From long term contracts and historically slow pay cycles to balancing costs in dynamic and unpredictable site conditions, there are a ton of factors that make financial management much more difficult.
• Empowering entrepreneurs with seamless bookkeeping solutions, tailored for diverse business landscapes.
• First, let’s make sure that you’re not at risk of losing your business and fix any broken links in your financial systems.
• By combining our expertise, experience and the energy of our staff, each client receives close personal and professional attention.

It’s definitely a mindset shift, but the good news is, no matter what kind of contractor you are, your construction firm’s needs are going to look pretty much the same. It’s how (and how much) you lean into practices like WIP reporting and job costing that will ultimately begin to move the needle for you. In construction, meticulous planning and a solid foundation are paramount for success.

Accountant for Contractors & Construction Companies

Hiring experience to manage your accounting is putting money in your pocket. By subscribing you agree to with our Privacy Policy and provide consent to receive updates from our company. First, let’s make sure that you’re not at risk of losing your business and fix any broken links in your financial systems. Empowering entrepreneurs with seamless bookkeeping solutions, tailored for diverse business landscapes. Send us your financial and/or tax documents safely and securely with our file sharing tool.