Accounting for Construction Contractors

A Trusted Team of Accountants for Construction Contractors

From higher material costs and trouble finding workers to unpredictable weather and budget constraints, the construction industry faces many unique challenges. Mowery & Schoenfeld’s dedicated accounting team is well-versed in your industry’s nuances and specializes in helping construction companies tackle the many complexities they face.

Unlike regular accounting, our specialized services for construction companies address the complicated nature of the business. Our team works closely with stakeholders like bonding companies and lenders to correctly show your financial performance and optimize your operations. With our expertise, we empower you to make strategic tax and business decisions to fit your needs and goals.

CONTACT US

Thomas Keenan >
Partner, Assurance Services Leader
Anthony Cullotta >
Assurance Partner

Insights

A Guide to Construction Financial Reporting >
Schedule K-1 Process and Summary of Reporting Requirements >

Specialized Accounting for Construction Companies

As members of the Construction Industry CPAs/Consultants Association (CICPAC), we understand the concerns construction business owners deal with. We use our extensive experience and knowledge of the trends, challenges, and opportunities affecting your industry to help you improve your business.CICPAC CPAs who know construction

We know that managing a profitable construction company is challenging. We’re here to handle the details that allow you to build a solid financial future. That includes:

  • Preparing and presenting financial application packages
  • Reviewing contracts and other documents for tax and financial statement considerations
  • Figuring out accurate job costing methods, and advising on decisions to lease or buy equipment
  • Implementing construction accounting software to streamline financial management and ensure accurate recordkeeping
  • Assisting with purchasing, receiving, and managing construction materials.

Custom Tax and Accounting Services for the Construction Industry

Beyond keeping you up-to-date and compliant with the changing accounting and tax regulations, our construction accountants work to help you boost profitability. We look for ways to make your daily operations run smoother, find smart ways to reduce your taxes, and work with you to create strategies that set your business up for long-term success.

Our construction contractor accounting and tax services include:

How Job Costing Keeps Every Construction Project Profitable

When it comes to job costing in construction, we know how important it is for you to understand exactly where your money is going and how much each project is earning.

We set up systems that track labor, materials, equipment, and overhead for each job, so you get a clear view of profitability without relying on company-wide averages. We pinpoint where every dollar was spent and compare actual costs to your estimates as the project progresses, measuring bid accuracy so you can make data-driven decisions based on your past performance. Our team also helps you build accurate work-in-progress (WIP) schedules, allowing more informed choices for bidding on new projects and your business’s financial future.

Revenue Recognition for Contractors: How to Choose the Right Method Under ASC 606

Our team knows the ins and outs of revenue recognition for contractors, including the requirements under ASC 606. Many contractors struggle with whether revenue should be recognized over time or at a certain point, including when a completion‑based approach may be appropriate for long‑term projects. With Mowery & Schoenfeld’s guidance, you can apply a consistent, compliant approach to tracking construction project progress and recognizing revenue.

Figuring out revenue recognition can be tricky, but we’re here to walk you through it. We’ll help you make sense of the rules, review your contract terms, and find the best approach so your financial reports stay accurate and ready for any audit you might face.

Learn more about revenue recognition

Retainage, Billing Methods, and How Contractors Improve Cash Flow

Managing cash flow is crucial given the long billing periods in the construction industry. We’re here to help you manage your financial statements, especially when it comes to the challenge of tracking retainage and finding the right billing method for your business.

It’s common for construction contractors to withhold 5%-10% of each progress billing until a project ends, but that can be difficult to reflect accurately on financial statements. We’ll work with you to pick the best billing method —time-and-materials, fixed-price, or cost-plus — and your show your numbers clearly on your balance sheet. Our team also helps you implement billing and collections processes that boost cash flow, so you’re always prepared with lender-ready financial packages for any external stakeholders who might want a more detailed picture of your financial health.

Get Started with Construction Contractor Accounting Services from Mowery & Schoenfeld

Talk to an advisor today.