Build Your Business with a Team of Construction Specialized CPAs
For more than 50 years, our construction CPAs have helped contractors and construction-related businesses see growth in an increasingly complex—and competitive—industry. With a broad slate of construction accounting services , we’re ready to be a cornerstone of your success.
Accounting, Auditing and Tax Services for Construction Contractors
Whether you’re a general contractor and/or subcontractor, you need an accountant who understands the nuances of construction expenses accounting in Minneapolis & St. Paul. To provide you with the expertise you need, we turn to our in-house Certified Construction Industry Financial Professional (CCIFP)—the only industry-recognized certification for financial professionals who specialize in the unique business of construction.
Our CCIFP, along with our team of construction CPAs in Minneapolis & St. Paul, can help you with everything from work-in-progress reports and construction budgeting to accounting for retentions in construction.Our goal: keep you out of the office and on the job site.
If your company is in need of an audit or review, a CPA Firm with construction industry knowledge is particularly valuable. This is because the construction industry requires certain disclosures that aren’t commonplace in others. And if your company needs help with bonding and sureties, a construction accountant can compile a presentation that meets both industry standards and a surety’s expectations.
Our Approach to Accounting for Construction Businesses
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 entries 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—and related overhead costs—will depend on its nature and stage of the project. With a thorough understanding of how generally accepted accounting principles 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 to keep up with the many 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.
Here are a few resources for your construction business –
Top 5 Ways the New Revenue Recognition Standard Will Impact the Construction Industry – Kyla Hansen, CPA
3 Ways Budgeting Can Improve Your Construction Business – By Jason J. Loven, CPA, CCIFP
Our construction CPAs in Minneapolis and St. Paul are ready to support your business.
Call today: 651-641-1099
Could Transitioning to an ESOP Jeopardize Your Company’s Status as a Disadvantaged Business Enterprise (DBE) or Other Preferred-Status Certifications?
By Amy Crouzer, CPA Preferred-status certifications, such as a minority-owned or women-owned business designations, are designed to increase economic opportunities for historically disadvantaged group...
Case Study: How a Construction Subcontractor Improved Profitability by Simply Bridging a Knowledge Gap
By Andy Knutson, CPA In 2017, we worked with a construction subcontractor that had struggled with profitability in recent years despite many project successes. The company’s bonding agent, who was c...
2018 Tax Filing Considerations for Contractors
For most contractors and construction-related businesses—particularly for those structured as pass-through entities—the 2018 tax season is anything but business as usual. With the Tax Cuts and Job...
Why Maintaining Your Job Schedule Is Good Business
A job schedule—also known as work-in-progress or WIP schedule—is a subsidiary ledger that tracks actual costs and billings per project. Ideally, your job schedule should be updated and reconciled ...
Top 5 Ways the New Revenue Recognition Standard Will Impact the Construction Industry
By Kyla Hansen, CPA There’s been a lot of talk about the new revenue recognition standard and the effect it could have on the construction industry. Although the standard, known as Accounting St...
How Indirect Construction Costs Can Impact Your Profitability
By Joy McAdoo, CPA Keeping tabs on direct construction costs for a project is pretty straightforward. Take your materials costs, for instance: X number of beams used on the project multiplied by cost ...