An experienced construction accountant and tax advisor can help you understand the ins and outs of the construction industry, enabling you to minimize your taxes and maximize your profits. These professionals can also act as a liaison between contractors and other professionals in the industry. They are familiar with the ins and outs of the industry and keep track of changes and issues.
Construction-specific CPAs are knowledgeable in the ins and outs of the industry
The construction industry has specialized accounting and financial reporting requirements, making it a prime candidate for construction-specific CPAs. These professionals understand the ins and outs of this industry and can help contractors maximize their returns. They can also help their clients with their tax returns and ensure they are in compliance with both state and federal laws.
A construction-specific CPA is familiar with the ins and outs of this industry and can advise on cost allocation. This is important, as one method may not work for every situation. For instance, a labour-intensive contractor might allocate costs based on field and burden hours instead of equipment hours. A construction-specific CPA can also help you obtain LEED certification.
Construction-specific CPAs can help contractors with cost accounting for long-term projects. This is an area where small mistakes can really hurt a construction business. For example, an overhead allocation that is not in line with actual costs can lead to under or over-allocation of funds.
They act as a liaison between contractors and other industry professionals
A construction-specific CPA understands the needs and concerns of a construction company and can advise on cost allocation strategies and systems. They also act as liaisons between contractors and other professionals in the industry. They are knowledgeable about construction-related business practices and can help establish relationships with bonding agents and banks.
This career track requires a lot of hands-on work. Most construction contractors are too busy with projects to devote time to tax preparation. A construction accountant and tax advisor can help by providing simple, easily digestible information on taxation and cash flow management topics. With a focus on Schedule C deductions, a construction accountant and tax advisor can help contractors reduce their tax burden and improve their cash flow.
Future construction accountants and tax advisors must be certified by the National Institute of Certified Public Accountants (ICPA), which requires a certain amount of experience in the field. This experience can be gained by working in a construction accounting department or as a financial services provider to the construction industry.