Accounting for construction requires niche-based financial knowledge and a lot of work. Construction company owners and managers who find their time better invested on the job site or meeting with customers often use the services of accounting consultants.
Simply choosing the correct revenue recognition method can be difficult for business owners. Failure to choose the proper method may result in the appearance of poor internal controls. It is important for construction businesses of any size to comply with federal, provincial and local regulations regarding controls, taxes and financial reporting.
As an Expert in construction accounting, Summer Solstice Accounting can provide monthly reporting, develop payment solutions, estimate job costs and help maintain proper internal controls; In addition to daily accounting related to paying bills and collecting on invoices, construction companies must deal with government regulations, industry tax issues and specialized accounting standards. Consultants provide many levels of assistance to help you meet your business goals.
The experts at Summer Solstice Accounting provide specific guidance on accounting for construction, including:
The necessity of charging costs to appropriate accounts
Specific revenue recognition rules that rely on estimates regarding percentage of job completed
Accounting for inventory costs and depreciation on equipment owned or rented
Bookkeeping for AR, AP, PR and government remittance