Construction accounting is a unique field that requires an expert to help you navigate the financial complexities surrounding it.
What exactly makes it different from other fields?
Project Based:
The financial focus revolves around every individual project that comes along. While other businesses treat their stores as profit centers, construction companies have to treat each project as a separate business. This means that your CPA needs to understand the intricacies that go into every unique project.
Different Job Sites:
Similarly to treating each project as unique, you have to treat each job site differently. Other businesses have one fixed production center, but construction companies move from site to site, meaning the costs can change from site to site.
Long-Term Contracts:
Unlike other industries, construction transactions can take months or years, with tons of factors to take into consideration that could delay payments or change costs. Keeping that in mind, contractors need very precise tracking and solid cash-flow strategies.