Although it’s tempting to stick with the same trusted bookkeeper you know and love, the complexity of construction bidding and cash flow could prevent you from boosting the construction business profits you deserve. As your company grows, this one thing is worth the investment.
Hire a CPA.
Keep your loyal bookkeeper (especially if it’s a family member!). Just consider outsourcing a few key services to help your company better manage tricky A/R, tax reporting or financial statement compliance that the “bid league” requires. Here are some areas where the assistance of a CPA experienced with construction services can get your financial house in order.
- Cash flow studies
Where is your company’s cash getting hung up and how can you improve its flow? A CPA can review A/R, contracts, requisitions, overtime and other factors to identify cash flow bottlenecks.
- Financial statement review and reporting
When financial statements don’t balance, that’s a red flag for bidding and financing. A CPA can coordinate with in-house staff to review or prepare financial statements so that your company has a back-up representative if project partners have questions.
- Identifying new areas of tax savings
CPAs are focused on tax reform and new areas of opportunity for the different industries they serve. You may find savings in a change of accounting method on long-term contracts, decisions to lease or purchase equipment or bonus depreciation. CPAs can also manage your risk for tax penalties.
- Risk management
Do you have adequate insurance? Are your contracts leaving too many vulnerabilities for client non-payment or subcontractor risk? Is it time to talk about succession planning and building value in your business for the future? A CPA can support these discussions to help you manage risk and provide security for you, family members and staff.
Although you may not need a CPA on staff full-time, engaging with a CPA regularly through the year can be a game changer. MFB CPAs offers a variety of approaches to help construction companies boost profits and manage risk. Talk to our team.