WIP, work in process, work in progress, accounting for builders, GAAP, surety and surety bonds. These are all complex terms that are unique to your industry. As Construction CPAs we understand these terms and work with a variety of construction contractors to improve their profitability.
Construction companies experience turbulent economic cycles and work in complex contractual and regulatory environments. You understand concrete, reinforcing steel, drywall, electrical panels, asphalt, and architectural plans. We understand the Internal Revenue Code, Generally Accepted Accounting Principles (GAAP), accounting methods, and financial ratios. The importance of a well built foundation comes from a team of advisors, and that team includes a construction-oriented CPA. All long-term successful contractors share this positive characteristic.
Whether you currently produce financial statements for your lender or bonding agent; all growing contractors will eventually reach a point where they are required to provide their bank and surety financial statements. The accuracy and proper presentation of this financial statement is critical to ensure that the contractor maximizes the amount of credit extended by its bank and surety. A contractor’s financial statements tell your story from a financial perspective. A poorly prepared financial statement that is not up to industry standards with regard to form and content will reflect poorly on the contractor and could lead to rejection of credit by the bank and surety, as they will have concerns about the accuracy and completeness of the financial presentation.
Construction contractors face a conflict in managing their business. In order to grow your bonding capacity, you need to grow your bottom line and leave money in your business. In order to save the most on taxes, you need to grow your bottom line and take money out and spend it.
These two goals can be at odds, but they don't have to be exclusive. We can help you manage this conflict and pay the least amount of taxes, while growing your business in order to bid larger, more profitable jobs.
We were once told that winning a bid is the fastest way to go out of business in construction. However, to be profitable you have to win bids. Bidding incorrectly or getting a contract that may be too large to effectively manage are significant risks to your business.
Has your surety, bonding agent or lender asked any of the following questions that you did not have an answer for:
If those questions got you thinking, the following are some examples of the benefits of our construction services:
If your bonding agent or lender calls because something doesn't make sense; get the help you need without worrying. Don't hesitate to contact us today.