Accounting for Construction

ACCOUNTING & advisory services for construction

At P&N, our construction services go beyond basic number-crunching.  They empower construction companies to build a solid financial foundation for their projects.  In an industry with razor thin margins, seasonality, and the constant need to aggressively manage cash flow, explore how P&N’s accounting services will help you stay competitive in a transforming industry. 

TAX PLANNING AND COMPLIANCE 

P&N offers our construction clients guidance on tax strategies, deductions and credits specific to the industry.  We focus on managing tax liabilities and optimizing benefits. When it comes to taxes, we understand the significance of cost capitalization, job costing, depreciation and amortization.

COST CAPITALIZATION

P&N understands the capitalization of construction costs is an important part of a contractor’s decision-making. It’s vital to understand the different types of costs eligible for capitalization and to know how depreciation and amortization affect a company’s P&L. Contractors must also recognize the importance of proper documentation, good record-keeping, and compliance with Generally Accepted Accounting Principles (GAAP). 

JOB COSTING

P&N assists our clients with job costing.  Accurate job costing ensures that project specific expenses are appropriately reflected during tax calculations.  It allows our clients to break down expenses related to labor, materials, equipment, and overhead for each project.  Job costing ensures proper record-keeping that can generate accurate financials essential for tax reporting and compliance.  Job costing helps you assess the profitability of individual projects allowing you to make informed decisions.  It provides the necessary data to show your financial health to lenders or bonding companies and effective job costing ensures that cash flow is optimized. 

BOOKKEEPING

Accurate bookkeeping is essential for managing construction finances effectively.  P&N can help in tracking expenses and costs by project, manage bank accounts, and breakdown payments into milestones to help with cash flow.   

Many construction companies use bookkeeping software to streamline financial management.  We are experts in all things QuickBooks and can assist in software selection, implementation, integrations, and individual or group QuickBooks training.