Construction companies and contractors have unique accounting needs that require experience and expertise. With jobs that run over long periods of time with many costs, tracking profitability can become complex. Involving an accountant with experience in this field can help you stay on top of your numbers and see the results you are looking for. Some industry-specific needs for construction companies include the following:
The biggest reason construction companies fail is due to a lack of financial guidance. Without proper financial statements, construction companies have a difficult time determining whether they are quoting enough for new jobs. Having accurate monthly accounting done for your business will allow you to see financial insights that will help you determine what is best for your business. Should we finance a large project or focus on smaller jobs? Should we change banks?
At Casey Moss Tax, we provide monthly management reports and visual insights that help you make important decisions when you need to. We act as a part of your team and are ready to guide you through the complex financial decisions that go along with running a construction company.
Many construction companies have a difficult time keeping accurate books. The most difficult part tends to be tracking the profitability of each construction project. Construction companies need to be able to track all income and expenses associated with a specific job. If they don’t, it can be difficult to tell what job types and customer types are the most financially beneficial.
This all comes down to accurate bookkeeping. Tracking material purchases, contractor costs, and income items associated with each job will make or break a construction company. Aside from that, many construction companies find that tracking residential vs. commercial jobs can help them determine where they should focus as a company.
All these tasks can be accomplished by outsourcing bookkeeping to a professional with industry experience. Let us guide you through the complex process of bookkeeping for your construction company and help you ensure that your business is as profitable as possible
Bookkeeping is just one piece of the puzzle. Keeping up-to-date books allows construction companies and contractors to take advantage of tax strategies before it’s too late. For example, many contractors need to purchase new equipment each year. Depending on how large profits are in a given year, it may make sense to accelerate asset purchases into the current year to take advantage of special depreciation deductions in order to save money in taxes. In other years when the company is showing a loss, it may make sense to elect out of this depreciation to save deductions for future years. Getting your taxes done properly ensures that you are paying the lowest amount of tax possible under current tax laws. Let Casey Moss Tax help you prepare for tax time and avoid any unwanted surprises at year-end.
Casey Moss Tax can help take away your worries when it comes to accounting, bookkeeping, payroll, and taxes. As your company grows, time wasted on administrative tasks is valuable time that could be used to book more jobs and make more money. We can help you develop processes that will scale with your company over time and allow you to make the money you deserve. Starting a business is tough, but involving accounting experts will make the process smooth and stress-free.