Construction Companies
Accounting & Tax
Comprehensive financial management and tax strategies for construction companies. We help you manage job costing, track progressive billing, and maximize your profitability on every build.
The Financial Challenges in Construction Companies
We understand the unique hurdles your industry faces. Here's what might be holding you back.
Cash Flow Bottlenecks
Waiting on draws and retainage while fronting the costs for materials and weekly payroll.
Change Order Management
Failing to properly document and bill for scope changes, leading to lost revenue.
Complex Payroll
Navigating prevailing wage requirements, union dues, and multi-state payroll compliance.
Our Tailored
Solutions
We don't just crunch numbers. We provide strategic financial oversight designed specifically for construction companies.
Get Started TodayProgress Billing & AIA Forms
Accurate preparation of AIA billing to ensure steady cash flow throughout long construction phases.
Job Costing & Profitability
Granular tracking of labor, materials, and subcontractor costs to evaluate the true margin of each project.
Subcontractor 1099 Compliance
Managing W-9s and ensuring all independent contractors are properly reported to the IRS.
Equipment Depreciation
Maximizing Section 179 and bonus depreciation for heavy machinery and construction vehicles.
Top Tax Deductions for Construction Companies
- Heavy machinery and vehicle depreciation
- Subcontractor payments and specialized labor
- Tools, safety equipment, and site materials
- Liability insurance and workers' compensation premiums
Don't leave money on the table. Let us review your tax strategy.
Schedule a Tax ReviewThe ROI of Professional Financial Management
By implementing precise job costing and optimizing progress billing, we help construction companies improve their cash flow and increase net margins by up to 20%.
"Their job costing analysis completely changed how we bid on new projects. We are finally seeing the profit margins we deserve."
Michael C.
Crestview Construction
Job Costing Estimator
Calculate your true project margins by factoring in materials, labor, subs, and overhead. See where your profits are leaking.
Project Profitability Analysis
Are your margins lower than expected? We can help optimize your job costing.
The Construction Financial Timeline
A typical project goes through multiple financial checkpoints. We ensure you stay profitable and cash-flow positive at every stage.
Pre-Construction & Bidding
Establish initial job cost estimates, secure financing, and review subcontractor W-9s before work begins.
Foundation & Framing
Initial material purchases and heavy labor costs. First AIA progress billing application submitted.
MEP (Mechanical, Electrical, Plumbing)
Complex subcontractor payments and specialized material tracking. Change orders often begin here.
Finishes & Fixtures
High-value material purchases. Monitoring budget variances closely as the project nears completion.
Closeout & Retainage
Final punch list, final subcontractor payouts, and collecting the retainage held by the client.
Service Profitability Heatmap
Not all jobs are created equal. Identify which trades and services are driving your profits and which ones are dragging down your bottom line.
Adjust Project Inputs
Modify the estimated costs and revenues below to see how it impacts the profitability of each trade category.
General Contracting
Margin: 13.8%Framing & Drywall
Margin: 21.1%Electrical & HVAC
Margin: 29.0%Plumbing
Margin: 25.0%Roofing & Exterior
Margin: 16.7%Finish Carpentry
Margin: 29.4%General Contracting
Framing & Drywall
Electrical & HVAC
Plumbing
Roofing & Exterior
Finish Carpentry
Strategic Insight
Services with margins below 15% (Red) indicate pricing issues or cost overruns. Aim for 25%+ margins (Green) on specialized trades to subsidize lower-margin general contracting work. We help contractors implement job costing systems to track these metrics in real-time.
In-House vs. Subcontractor ROI Calculator
A $35/hr employee actually costs much more once you factor in payroll taxes, workers' comp, and benefits. Compare the true cost of W-2 labor against 1099 subcontractors.
Construction burden rates typically run 30-50%.
True W-2 Hourly Cost
$49.00
Includes $14.00 in burden
1099 Hourly Cost
$65.00
Zero hidden burden
In-House Advantage
$2,560
Keeping this work in-house is more cost-effective for this project.
Tax Implications
Beyond hourly rates, 1099 subcontractors reduce your payroll tax liability, lower workers' comp premiums, and eliminate benefit costs. However, misclassifying an employee as a 1099 contractor carries severe IRS penalties.
Success Stories in Construction Companies
Real examples of how we've helped businesses in your industry overcome financial hurdles and accelerate growth.
Mastering AIA Billing
A commercial construction firm was experiencing severe cash flow crunches due to rejected or delayed AIA payment applications.
We took over the preparation of G702/G703 forms, ensuring perfect alignment with the schedule of values and eliminating errors that caused rejections.
"Our draws are getting approved on the first try now. The cash is flowing again."
— James T.
Capturing Change Orders
Project managers were executing change orders in the field but failing to pass the paperwork to accounting for billing.
We instituted a digital change order workflow that integrated directly into their accounting software, ensuring no work was done without a billable change order.
"I can't believe how much money we were leaving on the table just because of bad paperwork."
— Elena W.
Equipment ROI Analysis
The company was spending heavily on equipment rentals but was afraid to take on the debt of purchasing heavy machinery.
We ran a detailed ROI and tax depreciation analysis comparing rental costs vs. financed purchase with Section 179 deductions. The math clearly favored purchasing.
"We bought the excavators, lowered our monthly cash outflow, and slashed our tax bill."
— Robert K.
Ready to optimize your
business finances?
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Contact Information
Phone
(951) 888-3245Office
11400 West Olympic Blvd
Los Angeles, CA 90064
Business Hours
Monday - Friday: 9:00 AM - 6:00 PM PT
Saturday by appointment | Sunday closed.
