accounting-for-construction-industry

Accounting and Tax Consulting Services for the Construction Industry in San Diego

General contractors and construction company owners, have to deal with a mirage of issues, including tight profit margins, demands on cash reserves, unique billing and compliance requirements. In most businesses, you charge more than your direct costs and overhead so that you can make a profit. The issue in construction, however, is that the jobs and transactions can take weeks, months or years sometimes to complete. The construction industry is so different from other businesses that a completely separate section of the IRS tax code has been written and dedicated to their accounting methods. Whether you are a small contractor or a large construction company that deals with long term contracts, the IRS says you must pick which accounting method best represents your business. The two most commonly used construction accounting methods are:

  • the cash method
  • the accrual method –(i.e., accounts receivable, accounts payable, etc.)  

Your company must choose the right method because it will affect how you report income and deduct expenses. To make things more complex, there are several different accrual methods. On top of this, construction businesses have to worry about making costly tax errors related to preparing financial statements under the generally accepted accounting principles. It is crucial for builders to engage CPAs that thoroughly understand contract accounting and the elements of a construction project.

Thomas Huckabee, CPA, has worked with several types of construction companies in San Diego, and stays current with all the rapid fire changes that happen in construction accounting procedures. Our business advisory experience can help your business with controlling and estimating job costs, increasing cash flow, evaluating the profitability of projects or minimizing tax obligations. We also can set up and advise on which accounting and bookkeeping software technologies are best suited for your company’s needs in order to streamline efficiencies and operations.   

We have 30 years experience serving clients in:  

  • Commercial Construction
  • Design Build Construction
  • Road & Heavy Construction
  • Residential Construction
  • Suppliers for Contractors
  • Sub-Contractors
  • Specialty Contractors, including:
    • HVAC
    • Electrical  
    • Masonry
    • Carpenters
    • Drywall  
    • Air conditioning
    • Plumbers
    • Flooring
    • Framing
    • Painting

Experience the difference with working with a San Diego CPA who knows the ins and outs of the residential and commercial construction industry.    Thomas Huckabee CPA’s  Construction Practice is dedicated to providing personalized, client-focused service and strategic business advice to general contractors, construction managers, and subcontractors in the San Diego county area.  

Our construction industry tax and accounting services include:

  • Construction tax planning and analysis
  • Financial and operational reviews and assessments
  • Strategic financial planning  
  • Alternative minimum tax planning
  • Long-term construction contracts
  • Federal, state & local tax planning
  • Financial statements prep, review and compilation
  • Cash flow management analysis
  • Outsourced Payroll services
  • Selection and setup of accounting software  
  • Overhead rates and allocations to projects
  • Internal controls and reporting
  • Job estimating and cost consulting

Request a free consultation today to discuss the needs of your construction business.   

Thomas Huckabee CPA for over 30 years has been supporting  general contractors and subcontractors with cash flow management, succession, tax planning, financial operational planning.