Subcontractor
Is an expert in accounting for construction contractors needed for construction businesses in or near Fort Collins? If you have a career in the skilled trades, you’re no stranger to hard work. You use your tools, your hands, and your know-how to get the job done, sometimes working 12-hour days or scrambling to make tight deadlines.
Often, tradespeople, construction workers, and contractors must juggle many tasks, clients, and paperwork to keep things running smoothly; either putting in more hours to do it themselves or relying on a receptionist or family member to manage their books. But this is stressful for everyone involved and can result in errors and other mishaps, some of which are serious and may damage the business. When you’re running to and from the job site or on call for residential emergencies, you don’t have the time or energy to make sure your bookkeeping is immaculate. And you shouldn’t have to! Hiring a qualified CPA that is familiar with the skilled trades and related industries is one of the best business investments you can make. With professional help, you can rest easy knowing that your books are clean and balanced, your payroll is handled on time, your bills can get paid efficiently, and you are good to go come tax time.
Getting an accountant that understands the construction and construction subcontracting industry can be the difference between success and failure as a company.
Unlike other industries, the construction industry involves a lot of different accounting situations that some accountants might not be familiar with. At SJ Wick, we understand the bookkeeping and accounting that go into construction contractors in Fort Collins. We will keep your books in order while ensuring that everything aligns perfectly with legal accounting issues.
Tips for Starting Out Your Construction Contractor Business on the Right Foot
Infrastructure may be your passion and you can talk about building houses and establishments for hours. But passion can’t work alone. Knowledge about technical and legal issues will help you start your construction contractor business on the right foot. Here are a few tips to help you launch your skilled trade company:
1. Get all your licensing and certifications
Before you ever take a job, it’s vital that all of your professional certifications and industry licensing are complete and up-to-date. This not only offers you legal protection but gives your clients peace of mind as well.
2. Embrace modern technology
Because the trades have been around long before technology, many companies don’t see the need to jump on board with modern digital services. However, more and more people prefer hiring their tradespeople through apps, websites, and other online platforms. Make sure you use technology that increases your visibility and response time while protecting your customers’ privacy.
3. Continue your training
In many trades, the more years of experience someone has, the more they can charge and the more in demand they will be. If you finished an apprenticeship, keep taking steps to become a journeyman or master of your trade. Learn about newer technologies in your field, take additional classes, and consider getting more specialized certifications in a chosen niche.
4. Delegate other tasks
If you are great at fixing sinks or laying bricks, there’s no reason that you should also be great at accounting or marketing. Don’t try to do it all, and end up burning yourself out. Stick with what you love, and delegate your other business tasks to third-party professionals. Consider hiring someone else to build your website, or to keep track of your financial books and taxes. Look for accounting firms specializing in the construction industry, so you know you’ll be in good hands.
What an Accountant for Construction Contractors Can Do for Your Business in Fort Collins
There are also hiring contracts to consider when it comes to a construction company. Whether you are a painter or a plumber, making sure that your bookwork is prepared and maintained properly can mean the difference between keeping your employees happy and not. A construction accounting professional will identify cost savings loopholes, assist with tax filing, and improve your company’s bottom line. Experienced contract accountants provide your business with competitive advantages through tax-saving solutions. CPA firm SJ Wick will keep your financial numbers straight all while saving your business enterprise money.
Do I Really Need An Accounting Firm That Specializes in the Construction Contractor Industry? 4 Reasons to Hire an Expert Accountant for Construction Contractors in Fort Collins
For those who work in the skilled trades, like electricians, painters, and contractors, it’s worth seeking out an accountant who can speak your language. Here are three reasons why you should work with a CPA who understands your industry:
1. They understand the lingo
Each area of the skilled trades has its jargon, and it’s incredibly useful to work with someone who gets it. You want an accountant who knows your terms and expectations of your particular field, and who doesn’t need an explanation every time you talk about your job. This will help your interactions be smooth and hassle-free, and make you feel like you really have someone in your corner when you need them.
2. They aren’t intimidated by the paperwork
Owning and operating a small business isn’t easy, especially one that involves multiple clients, subcontractors, and suppliers. This is the normal way of things for electricians, roofers, and other construction workers, so it’s great to have a CPA who knows exactly how to file and track expense and revenue accounts.
3. They can handle tax season
For entrepreneurs and solo contractors, tax time can be a giant headache. But with the right accountant on board, your returns will be filled out correctly, and every aspect of your business for the past year will be accounted for. If you are intimidated by the tax process for small businesses, let a CPA handle the filing for you, so you know you will get the maximum return possible, and stay in compliance with state and federal laws.
Let Construction Accountants Near You Handle Tax Deductions
There are numerous tax deductions that are often overlooked by construction companies simply because these possibilities are unknown.
Many business-related expenses, like tools, transportation, license fees, and trade dues are eligible for a tax deduction. This can add up to a sizable amount for a construction company. However, keep in mind that you cannot deduct any expense that a client later paid for, like lumber for a client’s deck.
Can Construction Accountants Near Me Help with Travel Taxes, too?
A lot of business-minded people want to take full advantage of the tax deductions, especially for frequent activities like traveling. Driving to and from job sites is a normal part of the construction business, and these are important things to keep track of. Vehicle wear and tear, insurance, fuel, mileage, and other facets should be tracked and itemized, to not only potential deduct mileage, but also vehicle depreciation.
It takes a skilled eye and many years of working with companies like yours for an accounting firm to understand what you need to get back from your taxes. Don’t give more money away than you have to, and put more money in your pocket by hiring the right accountant for your construction company.
4. They can keep your cash flow straight between contracts and services
There are also hiring contracts to consider when it comes to a construction company. Whether you are a painter or a plumber, making sure that your bookwork is prepared and maintained properly can mean the difference between keeping your employees happy and not.
Working with a Local Accountant Means Specialized Insight into the Construction Business
Colorado is a small business-friendly state, and we have thousands of independently-owned companies here. One of the most vital industries is the skilled trades- plumbers, electricians, HVAC specialists, and other contractors provide highly valuable services for homes and businesses across the region. The skilled trades are only expected to grow in the next several years, and these careers can be lucrative.
As well, the weather and geographic area that Fort Collins lies in has its own challenges and opportunities for those in Northern Colorado–that only a CPA local to the area would be aware of and be able to incorporate into their projections.
Fluctuating Demand: An Example of Increased Construction Demand in Northern Colorado
In September 2013, much of Northern Colorado was deeply affected by flooding. It was estimated that nearly 1,800 homes were destroyed. The cost of rebuilding was anticipated to be astronomical, and construction contractors were put to the test on a variety of fronts. Not only will homes and businesses, as well as public infrastructure, need to be rebuilt quickly, but in many cases, the expenses of such jobs will challenge contractors to do more with less.
During the Colorado floods of 2013, an estimated 37,000 gallons of oil spilled into the Front Range landscape. Dealing with the safe rebuilding of infrastructure (such as in these circumstances) may entail hiring individuals with specific kinds of engineering experience. Some individuals weren’t sure whether to bring these specialized subcontractors on as employees or maintain a subcontractor relationship during the rebuild.
As a local CPA– Steven J. Wicks & Associates, PC has lived through this demand increase, and seen the seasonality trends that have developed in the construction industry in Fort Collins & Northern Colorado. With our specialized insight, we know how to better protect your business during demand changes while maintaining your projections.
Laying the Right Foundation with Accounting Firms Specializing in Contractors
Many people who are finishing training programs or apprenticeships desire to start their own companies, but only a handful of those people will go on to be successful. While the demand for these services will continue to be high, it’s important to lay the right foundation, so you can stand apart from the competition.
Each industry has its own special rules and regulations, and different daily operations, so it’s always best to find an accountant who specializes in your field and knows your local regulations. Knowing that you are looking for an accounting firm that specializes in construction contractors can help the process of narrowing down your options, and reaching out to a firm or two can make the decision easy.
Fort Collins Accounting for Construction Contractors Accomplishes Complicated Financial Matters So You Can Grow Your Business
In the construction industry, not only will your accountant help you find processes to run your books and allocate money for taxes, but they should also be able to help with industry-specific needs. These may include work-in-progress (WIP) reports, overhead allocation, risk management, job estimates, and special insurance or worker’s compensation.
A good CPA may also act as a vital contact between your growing business, and banks or loan lenders. Especially within the construction industry, loans can become necessary when purchasing large or expensive equipment.
In essence, your accountant should be experienced working with construction companies and should have a good sense of the industry. A qualified accountant for construction contractors will allow you to stay ahead of the game and ensure that all is running smoothly, so you can continue to focus on making your customers happy.
Check employee and contractor records– Classification is Key
For the most part, construction work in Colorado is seasonal and therefore, requires seasonal/temporary labor. Since the construction industry often relies on subcontractors and independent contractors, as well as a dedicated crew, this is a key piece of tax filings.
As a general contractor, you may be tempted to rely on contract labor to avoid the tax burden. You may also have permanent staff, such as administrative staff or even some laborers, and it is important to classify these employees appropriately.
Misclassifying employees to avoid taxes is considered worker fraud by the IRS, even if the mistake is made in an attempt to simplify your finances. Managerial accounting support can help you determine the right way to deal with permanent and/or temporary workers. Temporary contract workers will still need documentation of pay on a 1099 form for federal tax filings. Make sure that your employees are classified correctly, and that your payroll accounts for all third parties, even the one specialist you called in for one job.
Mistakes Construction Contractors often Make in their Accounting
Did you know some of your “accounting” practices could actually be a big mistake? Check out some common mistakes construction contractors make:
- Contractors also make the mistake of creating different files for each project or job and using an item list and chart of accounts that don’t accurately match the needs/expenses of their business. Creating custom item lists and charts of accounts may take some training, but it will enable business owners to track expenses and supplies most accurately.
- Another mistake that can cause construction business owners a major headache, is failing to properly receive vendor credits against a bill or receiving payments from customers incorrectly. These errors can be costly but are also entirely preventable with the right guidance.
- The other key mistake that construction business owners make is failing to reconcile bank and credit card accounts. This is a critical part of using QuickBooks to manage accounts, so it is well worth asking for help from an accountant to understand how to perform this operation.
Find A Reliable Accounting Firm Specializing in Construction Industry for Your Construction Business in Fort Collins
The construction business comes with many different and unique accounting structures. If you run a construction or contracting company, you’ll need an accountant that understands the legal loopholes involved with this type of business.
Steven J. Wick & Associates P.C. provides customized accounting solutions for construction and contracting companies in or near Fort Collins. You should feel heard and understood by your CPA, as they will become a valued member of your company team. Whether you need someone to do your bookwork or just figure out a tricky tax situation, we can help. Call us today to book a consultation with one of our construction and contracting accounting experts! 
Subcontractor
Is an expert in accounting for construction contractors needed for construction businesses in or near Fort Collins? If you have a career in the skilled trades, you’re no stranger to hard work. You use your tools, your hands, and your know-how to get the job done, sometimes working 12-hour days or scrambling to make tight deadlines.
Often, tradespeople, construction workers, and contractors must juggle many tasks, clients, and paperwork to keep things running smoothly; either putting in more hours to do it themselves or relying on a receptionist or family member to manage their books. But this is stressful for everyone involved and can result in errors and other mishaps, some of which are serious and may damage the business. When you’re running to and from the job site or on call for residential emergencies, you don’t have the time or energy to make sure your bookkeeping is immaculate. And you shouldn’t have to! Hiring a qualified CPA that is familiar with the skilled trades and related industries is one of the best business investments you can make. With professional help, you can rest easy knowing that your books are clean and balanced, your payroll is handled on time, your bills can get paid efficiently, and you are good to go come tax time.
Getting an accountant that understands the construction and construction subcontracting industry can be the difference between success and failure as a company.
Unlike other industries, the construction industry involves a lot of different accounting situations that some accountants might not be familiar with. At SJ Wick, we understand the bookkeeping and accounting that go into construction contractors in Fort Collins. We will keep your books in order while ensuring that everything aligns perfectly with legal accounting issues.
Tips for Starting Out Your Construction Contractor Business on the Right Foot
Infrastructure may be your passion and you can talk about building houses and establishments for hours. But passion can’t work alone. Knowledge about technical and legal issues will help you start your construction contractor business on the right foot. Here are a few tips to help you launch your skilled trade company:
1. Get all your licensing and certifications
Before you ever take a job, it’s vital that all of your professional certifications and industry licensing are complete and up-to-date. This not only offers you legal protection but gives your clients peace of mind as well.
2. Embrace modern technology
Because the trades have been around long before technology, many companies don’t see the need to jump on board with modern digital services. However, more and more people prefer hiring their tradespeople through apps, websites, and other online platforms. Make sure you use technology that increases your visibility and response time while protecting your customers’ privacy.
3. Continue your training
In many trades, the more years of experience someone has, the more they can charge and the more in demand they will be. If you finished an apprenticeship, keep taking steps to become a journeyman or master of your trade. Learn about newer technologies in your field, take additional classes, and consider getting more specialized certifications in a chosen niche.
4. Delegate other tasks
If you are great at fixing sinks or laying bricks, there’s no reason that you should also be great at accounting or marketing. Don’t try to do it all, and end up burning yourself out. Stick with what you love, and delegate your other business tasks to third-party professionals. Consider hiring someone else to build your website, or to keep track of your financial books and taxes. Look for accounting firms specializing in the construction industry, so you know you’ll be in good hands.
What an Accountant for Construction Contractors Can Do for Your Business in Fort Collins
There are also hiring contracts to consider when it comes to a construction company. Whether you are a painter or a plumber, making sure that your bookwork is prepared and maintained properly can mean the difference between keeping your employees happy and not. A construction accounting professional will identify cost savings loopholes, assist with tax filing, and improve your company’s bottom line. Experienced contract accountants provide your business with competitive advantages through tax-saving solutions. CPA firm SJ Wick will keep your financial numbers straight all while saving your business enterprise money.
Do I Really Need An Accounting Firm That Specializes in the Construction Contractor Industry? 4 Reasons to Hire an Expert Accountant for Construction Contractors in Fort Collins
For those who work in the skilled trades, like electricians, painters, and contractors, it’s worth seeking out an accountant who can speak your language. Here are three reasons why you should work with a CPA who understands your industry:
1. They understand the lingo
Each area of the skilled trades has its jargon, and it’s incredibly useful to work with someone who gets it. You want an accountant who knows your terms and expectations of your particular field, and who doesn’t need an explanation every time you talk about your job. This will help your interactions be smooth and hassle-free, and make you feel like you really have someone in your corner when you need them.
2. They aren’t intimidated by the paperwork
Owning and operating a small business isn’t easy, especially one that involves multiple clients, subcontractors, and suppliers. This is the normal way of things for electricians, roofers, and other construction workers, so it’s great to have a CPA who knows exactly how to file and track expense and revenue accounts.
3. They can handle tax season
For entrepreneurs and solo contractors, tax time can be a giant headache. But with the right accountant on board, your returns will be filled out correctly, and every aspect of your business for the past year will be accounted for. If you are intimidated by the tax process for small businesses, let a CPA handle the filing for you, so you know you will get the maximum return possible, and stay in compliance with state and federal laws.
Let Construction Accountants Near You Handle Tax Deductions
There are numerous tax deductions that are often overlooked by construction companies simply because these possibilities are unknown.
Many business-related expenses, like tools, transportation, license fees, and trade dues are eligible for a tax deduction. This can add up to a sizable amount for a construction company. However, keep in mind that you cannot deduct any expense that a client later paid for, like lumber for a client’s deck.
Can Construction Accountants Near Me Help with Travel Taxes, too?
A lot of business-minded people want to take full advantage of the tax deductions, especially for frequent activities like traveling. Driving to and from job sites is a normal part of the construction business, and these are important things to keep track of. Vehicle wear and tear, insurance, fuel, mileage, and other facets should be tracked and itemized, to not only potential deduct mileage, but also vehicle depreciation.
It takes a skilled eye and many years of working with companies like yours for an accounting firm to understand what you need to get back from your taxes. Don’t give more money away than you have to, and put more money in your pocket by hiring the right accountant for your construction company.
4. They can keep your cash flow straight between contracts and services
There are also hiring contracts to consider when it comes to a construction company. Whether you are a painter or a plumber, making sure that your bookwork is prepared and maintained properly can mean the difference between keeping your employees happy and not.
Working with a Local Accountant Means Specialized Insight into the Construction Business
Colorado is a small business-friendly state, and we have thousands of independently-owned companies here. One of the most vital industries is the skilled trades- plumbers, electricians, HVAC specialists, and other contractors provide highly valuable services for homes and businesses across the region. The skilled trades are only expected to grow in the next several years, and these careers can be lucrative.
As well, the weather and geographic area that Fort Collins lies in has its own challenges and opportunities for those in Northern Colorado–that only a CPA local to the area would be aware of and be able to incorporate into their projections.
Fluctuating Demand: An Example of Increased Construction Demand in Northern Colorado
In September 2013, much of Northern Colorado was deeply affected by flooding. It was estimated that nearly 1,800 homes were destroyed. The cost of rebuilding was anticipated to be astronomical, and construction contractors were put to the test on a variety of fronts. Not only will homes and businesses, as well as public infrastructure, need to be rebuilt quickly, but in many cases, the expenses of such jobs will challenge contractors to do more with less.
During the Colorado floods of 2013, an estimated 37,000 gallons of oil spilled into the Front Range landscape. Dealing with the safe rebuilding of infrastructure (such as in these circumstances) may entail hiring individuals with specific kinds of engineering experience. Some individuals weren’t sure whether to bring these specialized subcontractors on as employees or maintain a subcontractor relationship during the rebuild.
As a local CPA– Steven J. Wicks & Associates, PC has lived through this demand increase, and seen the seasonality trends that have developed in the construction industry in Fort Collins & Northern Colorado. With our specialized insight, we know how to better protect your business during demand changes while maintaining your projections.
Laying the Right Foundation with Accounting Firms Specializing in Contractors
Many people who are finishing training programs or apprenticeships desire to start their own companies, but only a handful of those people will go on to be successful. While the demand for these services will continue to be high, it’s important to lay the right foundation, so you can stand apart from the competition.
Each industry has its own special rules and regulations, and different daily operations, so it’s always best to find an accountant who specializes in your field and knows your local regulations. Knowing that you are looking for an accounting firm that specializes in construction contractors can help the process of narrowing down your options, and reaching out to a firm or two can make the decision easy.
Fort Collins Accounting for Construction Contractors Accomplishes Complicated Financial Matters So You Can Grow Your Business
In the construction industry, not only will your accountant help you find processes to run your books and allocate money for taxes, but they should also be able to help with industry-specific needs. These may include work-in-progress (WIP) reports, overhead allocation, risk management, job estimates, and special insurance or worker’s compensation.
A good CPA may also act as a vital contact between your growing business, and banks or loan lenders. Especially within the construction industry, loans can become necessary when purchasing large or expensive equipment.
In essence, your accountant should be experienced working with construction companies and should have a good sense of the industry. A qualified accountant for construction contractors will allow you to stay ahead of the game and ensure that all is running smoothly, so you can continue to focus on making your customers happy.
Check employee and contractor records– Classification is Key
For the most part, construction work in Colorado is seasonal and therefore, requires seasonal/temporary labor. Since the construction industry often relies on subcontractors and independent contractors, as well as a dedicated crew, this is a key piece of tax filings.
As a general contractor, you may be tempted to rely on contract labor to avoid the tax burden. You may also have permanent staff, such as administrative staff or even some laborers, and it is important to classify these employees appropriately.
Misclassifying employees to avoid taxes is considered worker fraud by the IRS, even if the mistake is made in an attempt to simplify your finances. Managerial accounting support can help you determine the right way to deal with permanent and/or temporary workers. Temporary contract workers will still need documentation of pay on a 1099 form for federal tax filings. Make sure that your employees are classified correctly, and that your payroll accounts for all third parties, even the one specialist you called in for one job.
Mistakes Construction Contractors often Make in their Accounting
Did you know some of your “accounting” practices could actually be a big mistake? Check out some common mistakes construction contractors make:
- Contractors also make the mistake of creating different files for each project or job and using an item list and chart of accounts that don’t accurately match the needs/expenses of their business. Creating custom item lists and charts of accounts may take some training, but it will enable business owners to track expenses and supplies most accurately.
- Another mistake that can cause construction business owners a major headache, is failing to properly receive vendor credits against a bill or receiving payments from customers incorrectly. These errors can be costly but are also entirely preventable with the right guidance.
- The other key mistake that construction business owners make is failing to reconcile bank and credit card accounts. This is a critical part of using QuickBooks to manage accounts, so it is well worth asking for help from an accountant to understand how to perform this operation.
Find A Reliable Accounting Firm Specializing in Construction Industry for Your Construction Business in Fort Collins
The construction business comes with many different and unique accounting structures. If you run a construction or contracting company, you’ll need an accountant that understands the legal loopholes involved with this type of business.
Steven J. Wick & Associates P.C. provides customized accounting solutions for construction and contracting companies in or near Fort Collins. You should feel heard and understood by your CPA, as they will become a valued member of your company team. Whether you need someone to do your bookwork or just figure out a tricky tax situation, we can help. Call us today to book a consultation with one of our construction and contracting accounting experts!
Subcontractor
Is an expert in accounting for construction contractors needed for construction businesses in or near Fort Collins? If you have a career in the skilled trades, you’re no stranger to hard work. You use your tools, your hands, and your know-how to get the job done, sometimes working 12-hour days or scrambling to make tight deadlines.
Often, tradespeople, construction workers, and contractors must juggle many tasks, clients, and paperwork to keep things running smoothly; either putting in more hours to do it themselves or relying on a receptionist or family member to manage their books. But this is stressful for everyone involved and can result in errors and other mishaps, some of which are serious and may damage the business. When you’re running to and from the job site or on call for residential emergencies, you don’t have the time or energy to make sure your bookkeeping is immaculate. And you shouldn’t have to! Hiring a qualified CPA that is familiar with the skilled trades and related industries is one of the best business investments you can make. With professional help, you can rest easy knowing that your books are clean and balanced, your payroll is handled on time, your bills can get paid efficiently, and you are good to go come tax time.
Getting an accountant that understands the construction and construction subcontracting industry can be the difference between success and failure as a company.
Unlike other industries, the construction industry involves a lot of different accounting situations that some accountants might not be familiar with. At SJ Wick, we understand the bookkeeping and accounting that go into construction contractors in Fort Collins. We will keep your books in order while ensuring that everything aligns perfectly with legal accounting issues.
Tips for Starting Out Your Construction Contractor Business on the Right Foot
Infrastructure may be your passion and you can talk about building houses and establishments for hours. But passion can’t work alone. Knowledge about technical and legal issues will help you start your construction contractor business on the right foot. Here are a few tips to help you launch your skilled trade company:
1. Get all your licensing and certifications
Before you ever take a job, it’s vital that all of your professional certifications and industry licensing are complete and up-to-date. This not only offers you legal protection but gives your clients peace of mind as well.
2. Embrace modern technology
Because the trades have been around long before technology, many companies don’t see the need to jump on board with modern digital services. However, more and more people prefer hiring their tradespeople through apps, websites, and other online platforms. Make sure you use technology that increases your visibility and response time while protecting your customers’ privacy.
3. Continue your training
In many trades, the more years of experience someone has, the more they can charge and the more in demand they will be. If you finished an apprenticeship, keep taking steps to become a journeyman or master of your trade. Learn about newer technologies in your field, take additional classes, and consider getting more specialized certifications in a chosen niche.
4. Delegate other tasks
If you are great at fixing sinks or laying bricks, there’s no reason that you should also be great at accounting or marketing. Don’t try to do it all, and end up burning yourself out. Stick with what you love, and delegate your other business tasks to third-party professionals. Consider hiring someone else to build your website, or to keep track of your financial books and taxes. Look for accounting firms specializing in the construction industry, so you know you’ll be in good hands.
What an Accountant for Construction Contractors Can Do for Your Business in Fort Collins
There are also hiring contracts to consider when it comes to a construction company. Whether you are a painter or a plumber, making sure that your bookwork is prepared and maintained properly can mean the difference between keeping your employees happy and not. A construction accounting professional will identify cost savings loopholes, assist with tax filing, and improve your company’s bottom line. Experienced contract accountants provide your business with competitive advantages through tax-saving solutions. CPA firm SJ Wick will keep your financial numbers straight all while saving your business enterprise money.
Do I Really Need An Accounting Firm That Specializes in the Construction Contractor Industry? 4 Reasons to Hire an Expert Accountant for Construction Contractors in Fort Collins
For those who work in the skilled trades, like electricians, painters, and contractors, it’s worth seeking out an accountant who can speak your language. Here are three reasons why you should work with a CPA who understands your industry:
1. They understand the lingo
Each area of the skilled trades has its jargon, and it’s incredibly useful to work with someone who gets it. You want an accountant who knows your terms and expectations of your particular field, and who doesn’t need an explanation every time you talk about your job. This will help your interactions be smooth and hassle-free, and make you feel like you really have someone in your corner when you need them.
2. They aren’t intimidated by the paperwork
Owning and operating a small business isn’t easy, especially one that involves multiple clients, subcontractors, and suppliers. This is the normal way of things for electricians, roofers, and other construction workers, so it’s great to have a CPA who knows exactly how to file and track expense and revenue accounts.
3. They can handle tax season
For entrepreneurs and solo contractors, tax time can be a giant headache. But with the right accountant on board, your returns will be filled out correctly, and every aspect of your business for the past year will be accounted for. If you are intimidated by the tax process for small businesses, let a CPA handle the filing for you, so you know you will get the maximum return possible, and stay in compliance with state and federal laws.
Let Construction Accountants Near You Handle Tax Deductions
There are numerous tax deductions that are often overlooked by construction companies simply because these possibilities are unknown.
Many business-related expenses, like tools, transportation, license fees, and trade dues are eligible for a tax deduction. This can add up to a sizable amount for a construction company. However, keep in mind that you cannot deduct any expense that a client later paid for, like lumber for a client’s deck.
Can Construction Accountants Near Me Help with Travel Taxes, too?
A lot of business-minded people want to take full advantage of the tax deductions, especially for frequent activities like traveling. Driving to and from job sites is a normal part of the construction business, and these are important things to keep track of. Vehicle wear and tear, insurance, fuel, mileage, and other facets should be tracked and itemized, to not only potential deduct mileage, but also vehicle depreciation.
It takes a skilled eye and many years of working with companies like yours for an accounting firm to understand what you need to get back from your taxes. Don’t give more money away than you have to, and put more money in your pocket by hiring the right accountant for your construction company.
4. They can keep your cash flow straight between contracts and services
There are also hiring contracts to consider when it comes to a construction company. Whether you are a painter or a plumber, making sure that your bookwork is prepared and maintained properly can mean the difference between keeping your employees happy and not.
Working with a Local Accountant Means Specialized Insight into the Construction Business
Colorado is a small business-friendly state, and we have thousands of independently-owned companies here. One of the most vital industries is the skilled trades- plumbers, electricians, HVAC specialists, and other contractors provide highly valuable services for homes and businesses across the region. The skilled trades are only expected to grow in the next several years, and these careers can be lucrative.
As well, the weather and geographic area that Fort Collins lies in has its own challenges and opportunities for those in Northern Colorado–that only a CPA local to the area would be aware of and be able to incorporate into their projections.
Fluctuating Demand: An Example of Increased Construction Demand in Northern Colorado
In September 2013, much of Northern Colorado was deeply affected by flooding. It was estimated that nearly 1,800 homes were destroyed. The cost of rebuilding was anticipated to be astronomical, and construction contractors were put to the test on a variety of fronts. Not only will homes and businesses, as well as public infrastructure, need to be rebuilt quickly, but in many cases, the expenses of such jobs will challenge contractors to do more with less.
During the Colorado floods of 2013, an estimated 37,000 gallons of oil spilled into the Front Range landscape. Dealing with the safe rebuilding of infrastructure (such as in these circumstances) may entail hiring individuals with specific kinds of engineering experience. Some individuals weren’t sure whether to bring these specialized subcontractors on as employees or maintain a subcontractor relationship during the rebuild.
As a local CPA– Steven J. Wicks & Associates, PC has lived through this demand increase, and seen the seasonality trends that have developed in the construction industry in Fort Collins & Northern Colorado. With our specialized insight, we know how to better protect your business during demand changes while maintaining your projections.
Laying the Right Foundation with Accounting Firms Specializing in Contractors
Many people who are finishing training programs or apprenticeships desire to start their own companies, but only a handful of those people will go on to be successful. While the demand for these services will continue to be high, it’s important to lay the right foundation, so you can stand apart from the competition.
Each industry has its own special rules and regulations, and different daily operations, so it’s always best to find an accountant who specializes in your field and knows your local regulations. Knowing that you are looking for an accounting firm that specializes in construction contractors can help the process of narrowing down your options, and reaching out to a firm or two can make the decision easy.
Fort Collins Accounting for Construction Contractors Accomplishes Complicated Financial Matters So You Can Grow Your Business
In the construction industry, not only will your accountant help you find processes to run your books and allocate money for taxes, but they should also be able to help with industry-specific needs. These may include work-in-progress (WIP) reports, overhead allocation, risk management, job estimates, and special insurance or worker’s compensation.
A good CPA may also act as a vital contact between your growing business, and banks or loan lenders. Especially within the construction industry, loans can become necessary when purchasing large or expensive equipment.
In essence, your accountant should be experienced working with construction companies and should have a good sense of the industry. A qualified accountant for construction contractors will allow you to stay ahead of the game and ensure that all is running smoothly, so you can continue to focus on making your customers happy.
Check employee and contractor records– Classification is Key
For the most part, construction work in Colorado is seasonal and therefore, requires seasonal/temporary labor. Since the construction industry often relies on subcontractors and independent contractors, as well as a dedicated crew, this is a key piece of tax filings.
As a general contractor, you may be tempted to rely on contract labor to avoid the tax burden. You may also have permanent staff, such as administrative staff or even some laborers, and it is important to classify these employees appropriately.
Misclassifying employees to avoid taxes is considered worker fraud by the IRS, even if the mistake is made in an attempt to simplify your finances. Managerial accounting support can help you determine the right way to deal with permanent and/or temporary workers. Temporary contract workers will still need documentation of pay on a 1099 form for federal tax filings. Make sure that your employees are classified correctly, and that your payroll accounts for all third parties, even the one specialist you called in for one job.
Mistakes Construction Contractors often Make in their Accounting
Did you know some of your “accounting” practices could actually be a big mistake? Check out some common mistakes construction contractors make:
- Contractors also make the mistake of creating different files for each project or job and using an item list and chart of accounts that don’t accurately match the needs/expenses of their business. Creating custom item lists and charts of accounts may take some training, but it will enable business owners to track expenses and supplies most accurately.
- Another mistake that can cause construction business owners a major headache, is failing to properly receive vendor credits against a bill or receiving payments from customers incorrectly. These errors can be costly but are also entirely preventable with the right guidance.
- The other key mistake that construction business owners make is failing to reconcile bank and credit card accounts. This is a critical part of using QuickBooks to manage accounts, so it is well worth asking for help from an accountant to understand how to perform this operation.
Find A Reliable Accounting Firm Specializing in Construction Industry for Your Construction Business in Fort Collins
The construction business comes with many different and unique accounting structures. If you run a construction or contracting company, you’ll need an accountant that understands the legal loopholes involved with this type of business.
Steven J. Wick & Associates P.C. provides customized accounting solutions for construction and contracting companies in or near Fort Collins. You should feel heard and understood by your CPA, as they will become a valued member of your company team. Whether you need someone to do your bookwork or just figure out a tricky tax situation, we can help. Call us today to book a consultation with one of our construction and contracting accounting experts!
