New businesses encounter several challenges. Accounting is one of those challenges faced by contractors and sub-contractors in the construction industry. Construction companies need track items such as labor costs, material costs, construction in progress and certified payroll for governmental agencies among other issues. While facing competitive pressures to bid and properly run projects, it can become difficult for construction companies to manage their accounting needs. Utilizing the right CPA firm can be a key benefit to success. This post discusses the importance of choosing the right CPA for construction companies.
4 Reasons to Opt for a Specialized CPA for your Construction Business
“A CPA is a person who understands the ins and outs of your business. Thus, by having a qualified CPA, you are earning a valued business consultant”, says David Gurdak, CPA and principal of Gurdak Group, Ltd. Here are reasons why every construction firm should work with a qualified CPA.
- Make Sound Financial Decisions: A CPA should assist in evaluating a company’s internal procedures so that proper bidding, job cost control, estimating, burden allocations, and change orders are properly managed. Gaining an understanding of all these factors helps the company make profitable business decisions.
- Secure Surety Credits Easily: Surety bond companies are known to conduct extensive checks on a contractor, before underwriting a surety bond. Proper financial statements and a good personal credit score are two requisites for earning a surety bond. A construction CPA understands what sureties or banks would like to see in financial statements.
- Understand Various Insurance Risks: Qualified CPAs have sound knowledge of various insurance risks. They will help their clients understand the insurance risks they might be exposed in the future. Also, they will help in evaluating the various techniques that will protect the company from such risks.
- Maximize Chances of Winning Public Work Projects: Public work projects generally require bonding and they follow a special bidding process. This process can be burdensome and require specific accounting and financial statement preparation. An experienced CPA will help you avoid the chances of disqualification, and ensure that the bid meets the job requirements.
Thus, there are various substantial benefits, when you work with a CPA for contractors and sub-contractors. Also, there is no substitute for understanding and industry-specific knowledge. To know more about Gurdak Group, Ltd. industry experience, and expertise, please call us on 847-827-8100.