Updated: Sep 14, 2020
What is CPA?
A certified public accountant (CPA) is a certificated given by the American Institute of Certified Public Accountants (AICPA) to individuals that pass the Uniform CPA Examination and meet the education and experience requirements.
Besides, there will be CPAs working deeply in different fields such as Construction CPA, Tax services, ... However, in this article, we will focus on sharing about Construction CPA.
So What is Construction CPA?
A construction-specific CPA is a construction accountant specializing in the construction industry. They are the accountants who passed the Uniform CPA Examination with knowledge and experience related to the construction industry. They have a solid grasp of how a construction business builds and handles the cost of work. Moreover, they do not stop at jobs related to auditing, state, and local tax preparation or making financial statements.
As a person with experience in construction finance, they are also knowledgeable about the problems that contractors are facing. Therefore, construction-specific CPAs can completely support business-building issues such as reporting needs such as percent completion or work progress reporting (WIP), as well as risk management and cost control, even they even help contractors to implement systems such as work cost accounting software or ERP packages. In addition, an "old" Construction CPA may make it easier for contractors to build relationships with banks as well as industry professionals they know.
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These are some tips for contractors to evaluate a CPA Company:
1. Check the tracking record of the CPA construction company
We can judge a CPA company by looking for their historical information, the projects they have done, how their customers commented on them, the results they have brought. construction customers. Occasionally, you will likely encounter construction CPA firms without any experience. You certainly do not want your company to fall into the hands of someone who is not familiar with the construction industry?
Also, you can contact other CPA companies, especially local CPA companies, who will be a good grasp of state affairs as well as state tax-related issues. Evaluate their expertise and ability to understand the accounting challenges specific to the construction industry.
2. Make a hiring decision after giving your hypothetical firm scenario for each construction CPA firms
Once you have a list of accounting services companies, try coming up with an accounting scenario your company often goes through. This will help you to see the capabilities of CPAs supporting your company. Through the exchange, you will understand the accounting company through understanding the problem, analyzing the situation, setting up a solution strategy for your company.
3. Quality CPA has conversations with contractors about the company throughout the year
Typically, businesses are prone to CPA firms that tend to appear right before your annual tax return is due and disappear once the return is filed. This happens when contractors find an accounting services firm at a cost “too good "and the contractor lost money as a result of errors on a tax return.
A quality CPA company will regularly assist you in financial matters. Below are the issues that a professional Construction CPA will discuss with contractors:
What your business does and what kind of customers you serve
Business goals (both short and long term)
The way of doing business could be more profitable
When you're planning to retire or sell your business
In conclusion, when you are a contractor, you need to consider hiring a Construction CPA Company to assist you with a lot of finance, but you also need to have a suitable choice for your construction company. You should have a thorough research process before making a decision because it will affect the growth of your construction company.
Are you ready to get help, or are you still not sure if you need help to run your construction business? Contact Construction Cost Accounting to have a free 15-minute consultation!