Accounting for Construction Contractors

You must obtain a contractor’s license if your contracting company is located in Tennessee and earns more than $25,000 per year. One of the requirements for your license is to have your financial statement reviewed by a CPA. We can perform this review for you to ensure you meet the qualifications for your license.

A traditional general ledger isn’t always helpful in the construction industry. That’s where job costing comes into play. We’ll help you record the costs throughout a project, store that information after the job is completed, and analyze that information to help with future job bids. 

We can help you keep track of all your expenses for each project you work on and help you make sound financial decisions for future jobs. This process will help your business to provide better bids and estimates and give you a more accurate idea of profit margins for each project you complete.

How do you know when you’ve made money on a job as a contractor? Sometimes it’s hard to know when you have a long-term contract in the works.

That’s where revenue recognition comes in handy. This process helps you determine when income and expenses count. Options include:

 – Cash method – recording only when you receive payment or expenses

 – Completed contract – reporting income and expenses only when the job is completed

 – Percentage of completion – billing for work completed in increments and continues until the contract is completed

We’ll help you determine which option is best for your business.

We can help with all your payroll needs. From prevailing wage payroll, navigating the rules of Davis-Bacon, managing union rates, and determining multiple rates in states and cities, we can help you navigate the complex world of payroll so that your employees get paid the right amount at the right time.