Construction

Audit, Tax & Consulting for Construction Companies

Effective business planning is essential in order to improve bottom line profitability, and build a more valuable construction business. Construction company executives require ready-access to reliable financial data, and must interpret this data at all stages of project management to run their businesses more effectively.

AAFCPAs takes a pragmatic approach when recommending proven tax strategies, and financial and operational solutions for our construction clients. We deliver reliable and ready-access to financial data and provide guidance on interpreting this data at all stages of project management enabling construction company executives to run their businesses more efficiently and profitably. Our team’s pragmatic advice comes from our 300+ member CPA and consulting firm, global network, and 45+ years of proven expertise.

Exceptional value audit/assurance, tax and advisory solutions for construction companies include:

Tax Planning & Compliance

• Tax minimization strategies
• Preparation of corporate federal and state tax returns
• Integration with owners’ and/or executives’ personal tax situations
• State and Local Tax (SALT) considerations
• Compensation Strategies: Wages, distributions, or a combination of the two
• Income leveling: Lower tax brackets through leveling
• Deferral: Cash basis, completed contract, short term contract, retainage, less than 10% complete, and residential
• Continuous research and analysis of opportunities to maximize federal and state tax credits
• In-house tax consulting strategists with expertise in trust, estate, owner related issues, and other legal matters that may impact construction businesses and/or owners

Profit Enhancement Solutions

• Outsourced Accounting & Fractional CFO: Right-size, outsourced accounting solutions, from cloud-based bookkeeping to high level CFO oversight oversight
• Business Performance, Internal Controls & IT Advisory
• Institutional investment advice, money management, financial planning & consulting, executive deferred compensation & retirement plan consulting, and succession planning solutions
• Fiduciary guidance and investment advisory solutions for employee benefit plan sponsors
• Technical Accounting Advisory: Implementation of new accounting standards, assistance with complex operational and financial transactions, audit preparation.
• Data Analytics: As part of a strategic agreement with ProNovos, AAFCPAs’ contractor clients may access construction-specific analytics solutions.
• Work In Process Analysis: Understanding all the key drivers of profitability, including Customers, Geographic location, Project Manager Performance and Job Size
• Benchmarking: Against competition and against your own performance
  • Key financial metrics analysis:
    • Working capital
    • Current ratios
    • A/R and A/P turns and days
    • Under billings to revenue
    • Revenue backlog and gross profit backlog
  • Key business development metrics:
    • Bid hit ratio
    • Proposals submitted per month
    • Leads generated
• Estimating process evaluation: True cost and risk-based pricing
• Purchasing:
  • Process and vendor analysis/acceptance/prequalification
  • Competitive bid and vendor capability
• Cost tracking: Assuring information is accurate and corresponds to job estimation process
• Change order process: Clarity and timely customer acceptance
• Budget to actual: Project Manager coaching and estimating to evaluate job performance to plan
• Insurance Options Review:
  • Contractor Controlled Insurance
  • Subcontractor default insurance
  • High deductible plans/self-insurance, captives
  • Contractor insurance credit, monitoring your experience MOD

Audit/Assurance Solutions

• Audits, Reviews and Compilations of Financial Statements
• Management Assertion Testing
• Internal Audits
• Pension and Benefit Plan Reviews and Audits (ERISA)
• Financial Forecasts and Projections
• Internal Controls Review and Design
• Due Diligence on Acquisitions and Divestitures
• Customized Assurances Services
• Efficient and non-disruptive to your business
• Meaningful information extracted from the audit process to increase profits
• Network connections – credibility with lenders, attorneys, and insurance brokers
• Our Business & IT Advisory services department is available to review your IT controls and assurance to streamline procedures in your construction and accounting processes.

The construction industry is richly diverse and dynamic, and AAFCPAs’ construction team has specialized insight and industry knowledge to help you reduce costs and improve profitability in a fiercely competitive market.

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