Benefits of Specialized Construction Accounting Services

Operating a construction business comes with immense complexities, especially when it comes to managing finances. From unpredictable project costs and cash flow to evolving contracts and industry regulations, construction firms face distinct challenges that traditional accounting methods often fail to address effectively.

Specialized construction accounting services are designed to provide the financial visibility, compliance, and advisory support construction companies need to survive and thrive. As your trusted partner, our team of experts at PVM Accounting leverages decades of experience to deliver customized accounting, tax, payroll, and advisory solutions tailored to your unique operations.

Read on as we explore the key benefits PVM Accounting offers and how our tailored services can transform the financial health of your construction business.

Complexities of Construction Finance Management

Before diving into our specialized services, it’s important to understand the underlying complexities of managing finances as a construction firm that creates a need for our support.

Dynamic Project Costs and Cash Flow

From fluctuating material expenses to unforeseen site conditions, construction projects involve diverse cost components that can vary widely across different phases. Tracking these dynamic project costs against milestones, change orders, and progress payments is essential yet highly complex.

Cash flow also tends to ebb and flow according to project timelines, contract terms, and client payments. Optimized cash flow management is the difference between profitability and financial struggle for many builders and contractors.

Evolving Contracts and Change Orders

Change is inevitable, especially for large-scale construction projects. Construction firms rely heavily on change orders and contract modifications, from scope changes to schedule updates, to account for new plans while minimizing disputes.

Keeping pace with these evolving agreements and properly logging any incremental costs or payments is imperative. Without diligent contract and change order accounting, firms face the risk of missed revenues, inaccurate project cost data, and conflicts.

Industry Regulations and Compliance

Construction finance teams must also grapple with diverse compliance requirements that come with operating in a highly regulated industry.

From lien waivers and retention releases to prevailing wage and workers’ compensation obligations, failure to meet compliance mandates can result in harsh penalties, legal disputes, and significant reputational damage.

Core Services for Construction Firms

PVM Accounting goes beyond basic bookkeeping and accounting to offer a 360-degree fine-tuned suite of services for the construction sector.

Core Services for Construction Firms

Let’s explore some of our key offerings:

Job Cost Accounting and Project Tracking

Our job cost accounting solutions help construction firms capture a granular, real-time understanding of project costs and profitability. This enables more informed bidding, budgeting, and project decisions.

Key capabilities include:

  • Tracking all direct/indirect costs at the project & activity level
  • Comparing actuals vs. budgets to improve control
  • Identifying issues early to mitigate cost/schedule overruns
  • Automating job costing with leading construction software
  • Producing customized reports (WIP, costs to complete, etc.)

Tax Planning and Compliance

The construction sector comes with an array of unique tax regulations and incentives. PVM Accounting serves as your advisor, leveraging deep tax expertise to minimize liability while maximizing savings for your business.

Our tax services span needs such as:

  • Multi-state tax planning, filing, and compliance
  • Researching job-based tax incentives and credits
  • Enabling fixed asset depreciation/amortizations
  • Sales tax automation for optimal construction sales tax
  • Taxable fringe benefit planning/reporting

Payroll Processing and Labor Cost Management

Handling payroll for hundreds of field and office employees takes immense coordination while accounting for prevailing wage compliance, unions, retainages, and more.

PVM Accounting has helped construction firms optimize their payroll function through:

  • Multi-state payroll processing
  • Timesheet integrations with project software
  • Union benefits administration
  • Automated prevailing wage tracking
  • Workers comp reporting and cost control
  • Employee portal access

Financial Reporting and Cash Flow Analysis

With financials that can shift day-to-day, construction executives need real-time visibility and analytics to drive decisions.

Our custom reporting and analysis deliver clear financial insights through the following:

  • Job profitability reporting
  • Schedule of values analysis
  • Cash flow projections
  • KPI reporting (gross/net margins, ROE, etc.)
  • Convenient digital access to live reporting

The PVM Advantage

What truly sets PVM Accounting’s services apart is our strategic combination of industry expertise, tailored solutions, and cutting-edge accounting technology.

Decades of Construction Industry Experience

With over 550 construction clients served across residential, commercial, civil, and trade contractor segments, our team brings an unparalleled understanding of industry financial drivers.

We’re deeply familiar with project management software, contractual terms, equipment/asset depreciation, insurance requirements, and other construction accounting nuances that external accounting teams simply lack.

Customized Solutions for Any Project

Every construction firm has unique goals, focus areas, and financial needs that demand a customized approach. Our solutions are tailored to your distinct segment, specialties, risk profile, geographic scope, and more.

Whether you’re a general contractor managing 20-story builds or a boutique kitchen remodeler, PVM Accounting shapes solutions for your specific construction operations.

Cutting-Edge Accounting Software and Technology

Efficiency is the name of the game when handling heavy transaction volumes and ever-evolving construction data. PVM Accounting invests heavily in automation and integration to deliver streamlined experiences.

Our team couples deep experience with the latest cloud-based accounting platforms to enhance accuracy while saving you time. In your tech stack, we also build custom integrations between leading construction project software, payroll systems, and other line-of-business tools. The result is a simplified single source of truth for your financial data and reporting.

Improved Visibility and Control for Construction Firms

Now that you understand our areas of specialization and competitive edge let’s discuss the tangible benefits our hundreds of existing construction clients unlock by partnering with us.

Granular Insights into Project Costs and Profits

Project cost leakages and profit fade eat away at margins in the construction world. PVM Accounting empowers highly granular visibility into all cost and revenue components so issues get flagged early before overruns spiral out of control.

Contractors using our job costing services reduced project cost variances by 35% on average over 12 months. With clearer insights comes greater command over budgets and bids, thanks to more predictable performance.

Proactive Planning for Tax Burdens

Tax regulations for construction companies shift frequently, but our dedicated tax specialists stay ahead of the curve. We ensure clients make informed decisions when structuring projects, equipment financing, real estate, and M&A situations.

PVM Accounting clients saved 22% on average annual tax expenses while unlocking over $380K in job-based tax credits for renewable energy and affordable housing projects last year alone. Staying tax-compliant and optimized provides peace of mind.

Optimized Cash Flow and Working Capital

With heavy investments into equipment, materials, and labor required months before client payments, optimized working capital and cash flow are imperative for construction survival.

Beyond recording income and expenses accurately, our experts forecast, analyze, and advise on improving cash positions. We also offer unique credit assistance and funding programs that enabled 93% of cash-strapped contractor clients to expand their operations last year despite rising interest rates.

Streamlined Regulatory Compliance

Staying compliant with lien waivers, insurance policies, retention releases, and other construction regulations is challenging. PVM Accounting has your back, seamlessly handling compliance filings, paperwork, and tracking to avoid fines or legal issues.

85% of general contractors surveyed said our outsourced compliance services saved them 8 hours per week managing paperwork and audits. Our experts also proactively advise you on requirements unique to upcoming projects, so staying compliant becomes turnkey.

Partner with the Construction Accounting Specialists

We hope this outline of our services and proven construction accounting experience demonstrates how PVM Accounting drives transformative outcomes for builders.

Contact us today to schedule a free consultation, learn more about our specialty offerings, or request pricing tailored to the unique needs of your construction business.

Schedule a Free Consultation

Meet our experts to discuss your current financial management challenges, operating structure, accounting software stack, and other factors impacting your needed services. We tailor recommendations with no strings attached.

Set up a free consultation now

Contact PVM Accounting Today

Speak to one of the construction accounting experts or request a custom proposal for outsourced accounting, tax, and advisory services tailored to your unique needs. We’re ready to guide you.

Over the past 17 years, PVM Accounting has become the preferred outsourced accounting partner for over 550 construction firms of all sizes and specialties. We understand this industry’s deeply complex financial drivers and are equipped to provide the visibility, compliance, cost control, and advisory solutions construction executives expect in a trusted partner.

Contact us and learn how our tailored services can help take your construction business finances to the next level.

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