A construction business can be highly profitable, but those earnings are closely tied to material prices, labor costs, and the real estate market. To maximize your profits and make sure you’re earning as much as possible during less favorable times, consider working with a dedicated construction accounting firm. A CPA specialized in construction can help you build profits and grow your business in several ways.
1. Analyzing Your Finances
In order to operate your business effectively and reinvest your profits in an informed manner, you need to have a good grasp of the day-to-day finances of your company, including income, expenses, tax liabilities, and more. A construction CPA can help you analyze your finances, provide detailed reporting, and give you advice about investments, growth opportunities, and more.
2. Mitigating Risk
The construction industry comes with plenty of risks, from losses due to changes in market forces to contract alterations or employee injuries. A skilled construction accounting firm can evaluate all the risks at your company and recommend changes to mitigate that risk and control costs, from reevaluating procedures to equipment upgrades or additional insurance coverage.
3. Reducing Tax Liabilities & Penalties
Without a dedicated construction CPA, you may be paying too much in taxes. A qualified CPA can find every deduction and credit that your company may qualify for while instituting comprehensive tax planning to reduce your liabilities and ensure that your taxes are filed properly to avoid unnecessary penalties or late fees.
4. Instituting Construction-Specific Practices
A CPA familiar with the building and construction industry can implement construction-specific accounting practices that optimize cash flow and keep your business running smoothly, such as progress billing that ensures payment is received at certain benchmarks throughout the project, instead of all at the end. This keeps revenue flowing for payroll, material purchases, and more.
5. Improving Job Estimation
Overbidding a job can prevent your company from winning the bid, while underbidding can cut into your profits. To make sure your job estimates are as accurate as possible while still maintaining comfortable profit levels, choose a qualified construction accounting firm to help with job costing and estimates. They can track material prices, labor costs, and other market forces to provide estimates that win more bids and earn higher profits.
Construction Accounting Services in Dallas, TX
When you need the best construction accounting firm in the Dallas area for your business, trust our team at Gurian CPA. We offer everything from business accounting and bookkeeping to tax preparation, business entity formation, payroll services, financial analysis, and more. Our team is dedicated to your success, and we can help your construction firm boost profits and improve growth with services that are tailored to the needs of the construction industry.
To schedule a consultation with our construction accounting experts at Gurian CPA, call (469) 306-9866 today.
