Contractors are often unsure of their financial condition. Construction projects impact multiple accounting periods; indirect project costs require allocation to projects.
Construction contracting is highly specialized, with accounting problems not found in other industries:
- Joint ventures
- Equipment costing
- Long-term contracts
- Joint checks
Contractors have special tax considerations which can make a big difference. Tax elections can be made which defer payment of income taxes. Have you made the appropriate elections?
- Completed contract method
- Percent complete method
- Indirect cost allocations
- Cash method
Contracting is a high risk business with unusual accounting problems. Not all CPAs understand construction accounting, but our practice has provided services to construction contractors for decades. We are familiar with the information required by surety, financial institutions, and the special features of the industry.