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. As a Top 100 firm, we have extensive experience navigating complex tax regulations and compliance requirements essential to minimize tax while avoiding potential legal and financial issues.
Tax Planning & Compliance for Construction Companies
AAFCPAs provides tax planning and compliance services focused on tax minimization strategies, including preparation of corporate federal and state tax returns and integration with owners’ and executives’ personal tax situations. We advise on State and Local Tax (SALT) considerations and compensation strategies involving wages, distributions, or a combination of the two.
Our team supports income leveling to take advantage of lower tax brackets and deferral strategies, including cash basis, completed contract, short-term contract, retainage, less than 10% complete, and residential methods. We also conduct continuous research and analysis to identify opportunities to maximize federal and state tax credits.
Our in-house tax consulting strategists bring expertise in trust and estate matters, owner-related issues, and other legal considerations that may impact construction businesses and their owners.
Financial Performance & Profitability Advisory for Contractors and Developers
Outsourced Accounting & Fractional CFO
Right-sized outsourced accounting solutions, from cloud-based bookkeeping to fractional CFO oversight, supporting day-to-day execution and strategic planning.
Business Performance, Controls & Technical Accounting
Advisory services focused on internal controls, IT processes, audit readiness, and technical accounting matters, including implementation of new accounting standards and support for complex transactions.
Data Analytics, Benchmarking & Financial Metrics
Through our strategic relationship with ProNovos, contractor clients can access construction-specific analytics and benchmarking to evaluate performance against peers and historical results. Key areas include working capital, liquidity ratios, billing and collections, backlog analysis, and profitability drivers.
Work-in-Process & Project Performance Analysis
Deep analysis of WIP and job performance, including customer mix, geography, project size, and project manager performance, supported by budget-to-actual reviews and estimating feedback.
Business Development & Estimating Effectiveness
Evaluation of bid strategy and estimating processes, including bid hit ratios, proposal volume, lead generation, true cost modeling, and risk-based pricing.
Purchasing, Cost Controls & Change Management
Assessment of purchasing processes, vendor qualification, cost tracking accuracy, change order procedures, and alignment between job estimates and actual performance.
Insurance, Risk & Fiduciary Advisory
Guidance on contractor insurance structures and risk management strategies, including CCIPs, subcontractor default insurance, captives, self-insurance, experience MOD monitoring, and fiduciary and investment advisory services for benefit plan sponsors.
Audit & Assurance Services for Construction Companies
AAFCPAs provides audits, reviews, and compilations of financial statements, including management assertion testing, internal audits, and customized assurance services. We also perform pension and employee benefit plan reviews and audits (ERISA), prepare financial forecasts and projections, review and design internal controls, and support due diligence for acquisitions and divestitures.
Our audit approach is efficient and non-disruptive to your business, while extracting meaningful information from the audit process to help increase profits. We bring established network connections and credibility with lenders, attorneys, and insurance brokers.
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.