It’s a great time to be in the construction industry here in Atlanta.
According to the Atlanta Journal-Constitution, hiring and investment in the construction sector has been on a hot streak.
For more than a year now, metro Atlanta construction firms have been fielding more projects and bringing more talent into their teams.
Exciting opportunities for growth are presenting themselves to large firms and small contractors alike. But no matter the size of your enterprise, there’s a challenge to grapple with:
Every new initiative adds financial complexity to your business. Without help from an expert – like a Certified Public Accountant (CPA) – these complications can sap the strength from new revenue streams. Your operations could end up leaking millions of dollars.
The fundamentals of accounting in construction are different from any other industry:
- Sales are complex, accounting for a wider variety of services than in other industries.
- Each project incurs hundreds of direct and indirect costs in many different categories.
- The distinction between operational overhead and construction costs is often blurred.
- Achieving true breakeven requires sophisticated monitoring of income and expenses.
With all that in mind, the assistance of a CPA proves invaluable. Our insights can help your business become and stay competitive in a wide variety of ways.
1. Saving Money on Overhead, Depreciation, and Tax
Many expenses in the construction industry are difficult to control up front. They can often only be reduced using accounting techniques that maximize financial benefit in an ethical, consistent way. Categorizing spending correctly can, on its own, save substantial amounts quarterly. Many business owners are leaving money on the table in tax deductions they simply overlook.
2. Recognizing and Resolving Financial Process Gaps
Your financial processes ensure you get paid fairly for all the work you do. When issues arise in invoicing, collecting, and processing payments, they cost you money. Usually, that’s money you’ve already earned! A CPA ensures your business won’t suffer “death by a thousand cuts.” We are trained to recognize gaps and remedy them quickly.
3. Remaining in Compliance with Labor Taxes and Regulations
Construction firms are in the unusual position of using a combination of permanent and contract workers. The labor pool for any given job must be recreated and expanded based on the skills needed. Recognizing, properly categorizing and reporting workers as either employees or contractors is essential to remain in regulatory compliance with the IRS and Department of Labor. We will supply such guidance.
4. Making Cost-Efficient Equipment Investments
Capital equipment is among one of the biggest investments your business will make – figuratively and literally. We can evaluate funding options when you buy and ensure you receive full tax deductions for investment and depreciation.
For leaders in the Atlanta construction industry, the right CPA makes a winning difference.
To learn more, contact Fricke & Associates, LLC today.