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Construction

AAF’s construction team has specialized insight and industry knowledge to help you reduce costs and improve profitability in a fiercely competitive market.

Construction

Audit, Tax & Consulting for Construction

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. AAF takes a holistic and pragmatic approach when recommending and providing financial and consulting solutions for our construction clients.

AAFCPAs provides proactive audit/assurance, tax and advisory solutions for construction companies, including:

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
  • Evaluate if you qualify for Domestic Production Activities Deduction (DPAD)
  • Continuous research and analysis of opportunities to maximize federal and state tax credits
  • Our tax department includes an attorney with expertise in trust, estate, owner related issues, and other legal matters that may impact construction businesses and/or owners

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.

Profit Enhancement 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

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

What our clients say:

“AAF has helped Benn Construction Company and me minimize our tax liabilities with creative tax planning while staying focused on maintaining financial profitability to fully utilize our borrowing and bonding resources. Jack Finning and his team respond quickly to our questions and concerns.”

Benn Construction Company, Inc. | Lewis Benn, President