Whether your company is constructing a multi-story building or working on a revitalization project, you need financial management. Adding financial management tasks to your full plate can be challenging as a project manager. This is why partnering with one of the top accounting firms that provide accounting services for construction companies is recommended.
In this post, we’ll cover five essential services an advisory firm provides for construction companies.
5 Accounting Services for Construction Companies
1. Job Costing and Project-Based Accounting
There’s nothing worse than starting a construction project only to realize it will cost more than anticipated. When this happens, you have two options: source funding from other sources or abandon the project.
You can avoid this situation by fully grasping your budget and conducting an accurate project profitability assessment. This is just one of the accounting services an assurance and advisory firm can provide for construction companies.
Your accounting partner can help you track costs, plan your budget, and get a better analysis of profitability before you’re too far into a project.
2. Audit and Assurance
Whether you’re a general contractor or a public development corporation, it’s common to need an audit for banking and funding purposes. You’ll need to engage with an independent firm specializing in construction accounting and assurance services.
You might be required to submit regular audits of your financial statements as part of your loan agreements. Regular audits give you and your stakeholders a clear understanding of your operations. Working with experienced construction CPAs can ensure your audits are timely and properly executed. This can help secure more funding, ensure regulatory compliance, reduce risks, and provide transparency for your stakeholders.
3. Cash Flow Management
As a project manager, you know cash flows in and out of your accounts at any moment. With so many cash flows and projects happening simultaneously, keeping track of upfront costs, delayed payments, and your project’s budget can be challenging.
It’s helpful to have a trusted construction industry accounting partner on your side who understands the nuances of the construction business. They can help you manage the systems you need to ensure your project is fully funded.
4. Payroll and Labor Compliance
Although your HR department might have a firm grasp on payroll management, it can be helpful to partner with an accounting firm to have a second set of eyes on your payroll and finances. If you offer your employees 401K or retirement plans, these programs impact your overall budget and revenue.
A firm specializing in construction can help you manage your payroll, plan your budgets, factor in labor costs for project quotes, and ensure you comply with labor regulatory requirements, such as employee benefit plan audits.
5. Financial Reporting and Analysis
Although a trusted construction accounting firm can provide audits and assurance services, they also help with financial reporting and analysis. Reporting and analysis are vital for construction companies, especially when stakeholders like investors and buyers are involved.
These reports and subsequent analyses help your team make better, informed decisions and efficiently track the performance of investment projects.
Why Choose Assurance Dimensions?
Development firms looking to stay ahead of the competition can benefit from accounting services for construction companies. These services, like auditing, payroll management, and financial reporting, can help you better understand where your company stands financially. This can make quoting and bidding on projects much more manageable.
At Assurance Dimensions, we are experts in construction accounting. We offer competitive pricing and take the time to understand your business so we can tailor our approach to provide the best, most accurate financial oversight possible.
Contact us today to learn more about our construction accounting services.