An accountant for a construction company is different from one working in an IT firm. The principles used are the same. But accounting for construction has industry-specific challenges and concepts. For example, projects are often one-offs, so the numbers must be right from the start. This is challenging because each project has a mobile workforce. It can cover different sites and the cost of materials is always fluctuating.
Construction accounting is a specialized discipline. Construction CPAs focus on various factors. They have to manage the cost and profitability of every project. They also help with retainers and specialized billing. They also have to keep track of change orders. These CPAs must remain on top of the project from its beginning to its completion. Most of these projects take years.
Reasons You Need an Accountant for Your Construction Company
Accountants are the backbone of many businesses. Every industry is different though. It’s why many companies are opting to work with specialized accountants. Studies show a large number of SMEs will invest in such professionals. It’s one of the main ingredients to success. Especially in key industries like construction. It’s because an accountant for a construction company does more than balance the books. Here are the top reasons they’re vital to these businesses.
Understands Industry-Specific Practices
An accountant for a construction company is adept with the practices of the industry. For example, they know how to use the percentage-of-completion strategy. This method is often used by architecture firms to maintain their business records. The system records expenses and revenue as a percentage of the project’s completion. It gives the company a detailed look at its cash flow at any given time.
Swift Surety Decision Making
Construction firms depend on sureties. It ensures their projects progress to the next phase. The guarantor will want to see accurate and reliable information about the project.
A construction CPA can provide an efficient and detailed update anytime. Giving accurate information will help ensure funding for the project goes well. It can also mean less turnaround time from the surety underwriter.
Help with Bonding and Credit
Many construction companies need to secure a business line of credit. This is especially true when juggling different projects. Lending companies are more amenable to extending credit if they trust the company. A trustworthy and expert accountant can help with the credit application process. These professionals know how to navigate the system well. They can also present a more compelling case to secure financing.
Accounting for construction companies understands the ins and outs of construction bonds. There are three main bonds these companies often deal with. There’s the bid bond and the performance bond. They also have to make payment bonds. Specialized accountants can help a construction firm get a bigger bond line. This can then open up the company to larger or more projects. They can even become qualified for government contracts.
Knowledge to Boost Your Revenue
A good accountant for a construction company can also provide valuable input. They can offer insights into the planning and management of your firm. They might have worked with businesses like yours. They can leverage this experience and provide you with good advice. For example, they can tell you how to manage your assets and grow your business. They can give pointers on how to boost revenue.
Helping You Find Top Talent
A company’s success depends on its people. NW Recruiting Partners will make sure the top talent goes to your team. We’re a full-service boutique recruiting company. We recruit valuable professionals across the country. We specialize in filling accounting and construction posts. We also focus on manufacturing, HR, and sales. Our expert recruiters specialize in securing direct hire and contract-to-hire posts. Why not call us at 206-343-8732? Let’s talk about what you need. You can also message us here.
