Construction CPAs with 50+ Years of Experience
For more than 50 years, we’ve helped construction contractors and construction-related businesses with everything from bonding and banking to calculating work-in-progress reports. With deeply rooted expertise as construction CPAs, we’re ready to be a cornerstone of your success.
Construction Contractors Accounting, Auditing and Tax
Whether you’re a general contractor and/or subcontractor, you need an accountant who understands the nuances of construction accounting. Our staff includes a Certified Construction Industry Financial Professional, or CCIFP. It’s the only industry-recognized certification for financial professionals who truly know the unique business of construction.
Working with a firm that specializes in contractors is particularly important if your company is in need of a review or audit. This is because there are required disclosures for your industry that do not apply to others. And if your company attempts to secure bonding, a construction accountant can help you compile a presentation that meets industry standards—and a surety’s expectations.
Projects move at breakneck speed. Plans change at a moment’s notice. Regulatory requirements reverse course in the blink of an eye. When you’re in the midst of the chaos, you need accurate financial information—especially internal and overhead cost data—at your fingertips. Our construction CPAs keep you informed, empowering you to make confident decisions when schedules are tight. From delivering a financial report analysis to assisting with journal entry preparation, we help you stay ahead of it all.
Indirect Costs of Contracts
Direct construction costs are easily tied to a specific project, but indirect construction costs can be harder to track. That’s because these include activities such as wear and tear on tools and equipment, quality control and inspection, and labor not directly attributed to one particular job. Improper accounting of such costs can easily skew your estimates, financial statements, and more. Let us help you identify and track indirect construction costs, so you can better understand your business and gain a competitive advantage.
Real Estate Development Accounting
A real estate development project takes place in three stages: pre-development, development, and post-development. Pre-development often incurs start-up costs such as market research, financing, and the acquisition of equity partners. Development costs include design and engineering, construction, and licenses and permits, to name a few. A project in the post-development stage will see costs for utilities, real estate taxes, and capital improvements. Accounting for each cost will depend on its nature and stage of the project. With a thorough understanding of generally accepted accounting principles and how they relate to regulatory requirements, our construction CPAs keep your real estate project in compliance at every stage.
Tax Accounting for Construction Contractors
The construction industry is constantly in flux, making it difficult for business owners to keep up with construction accounting and regulatory changes. Our construction CPAs are active in industry association and groups, such as the Minnesota Subcontractors Association, Associated General Contractors of Minnesota, Minnesota Builder’s Exchange, Associated Builders and Contractors (Minnesota / North Dakota Chapter), Association of Women Contractors, and Minnesota Surety Association. We stay at the forefront of industry developments, so you can stay focused on your business.
As with any industry, there are specific items contractors should consider when filing tax returns. We help you account for those that may affect your business, including the following:
- Recognizing revenue
- Percentage of completion
- Completed contract
- Cash vs. accrual
- Special provisions for home builders
- State nexus and filing issues
- Lookback rule for percentage completion
- Potential AMT adjustments for contracts
- Production deduction
- R&D credits
- Section 179D credits
There are a number of accelerated depreciation options available that could help you minimize your taxable income. These can be very valuable for equipment-heavy contractors. Our construction CPAs can walk you through the pros and cons of each.
Whether you’re ready to grow your business or sell it, we’re ready to give you a solid foundation. With more than 50 years of construction accounting experience, we can guide you through sales and purchases of existing businesses, mergers and litigation support.
Understanding the value of your construction company is wise, even if you aren’t looking to sell. As part of a business valuation, our construction CPAs can help you analyze all facets of your company—beyond assets and liabilities—to uncover issues that could positively or negatively affect its value.
If you are looking to sell, whether to family, employees or an outside buyer, our construction CPAs can help you structure your company for an easier transition. We understand the construction industry and the unique challenges you face in transitioning a construction company. We have helped many of our clients transition their businesses, and we are ready to help you through this process.