Outsourced Accounting Services for Construction Companies

There’s no question that the construction business is a difficult industry to operate in. From the big picture issues of long-term projects to accounting for every single nut and bolt your company buys, it’s a complex business full of complex challenges.

Success, as in all businesses, lies in delivering strong financial results. But today, many construction company owners are in the dark when it comes to their business’s financial position. Keeping track of your bank account balance might seem like enough. But it does little to help you spot emerging cash flow challenges or identify cost overruns in a particular project.

Uncovering those insights, and using them to better lead your company and its projects, demands a higher standard of accounting. And that’s something many construction companies lack the resources to accomplish on their own.

For that reason and several others, many construction companies work with an outsourced construction accounting firm. In this overview of outsourced accounting services for construction companies, we share the kinds of tasks you can expect an outsourced construction accounting CPA to handle. We’ll also outline our approach to supporting our construction accounting clients at James Moore.

What Does a Construction Outsourced Accountant Do?

The scope of your business’s relationship with its outsourced accounting firm depends on a variety of factors. In general, there are two main models for this relationship: transactional and advisory.

A transactional accounting service provides a reliable solution to managing the day-to-day financial needs of your business. Your outsourced accounting firm will manage your books and work on monthly financial statements, giving you the peace of mind that everything is being handled on your behalf.

If you opt to work with an outsourced accounting service with an advisory component, you can expect a similar relationship to that described above, but with a range of consultative services tailored to your business needs. Your outsourcing partner handles every aspect of your finances, from closing the books each month to producing cash flow projections. They also provide bespoke advisory solutions, such as tax planning services and monthly CPA meetings.

Generally speaking, outsourced accounting services can be organized into three tiers. Experienced, established outsourced accounting providers, including James Moore, typically provide support across all three areas, working closely with clients to design an optimal framework for the relationship:

  • Outsourced Construction Bookkeeping: An outsourced bookkeeper handles the day-to-day financial tasks of your business, from recording and categorizing transactions to managing accounts payable and receivable.
  • Outsourced Construction Accounting: Outsourced accountants supervise your bookkeeping staff. They’ll also oversee more hands-on tasks such as producing monthly financial reports, running payroll, and preparing documents for tax filing.
  • Outsourced Construction CFO Services: Outsourced CFOs are experienced financial leaders with the strategic knowledge to help your construction company address complex challenges and build the financial infrastructure required to support continued growth.

These services tend to be highly scalable. At an early stage in your company’s growth journey, you might start with simple bookkeeping services. As you grow and encounter new financial challenges, you’ll add more strategic CFO-level services .

The Benefits of Outsourcing Your Construction Accounting

The vast majority of construction companies stand to realize significant benefits from outsourcing their accounting. In an industry as specialized as construction, it’s important to have an accounting team that knows how to plot a path to financial success.

Some of the benefits of working with an outsourced construction accounting firm are:

  • Domain Expertise: Outsourced accounting firms have a deep bench of talented CPAs with years of experience in the construction industry. They understand the nuances of construction accounting, from how to keep a WIP schedule to managing complex job costing.
  • Cost Savings: When you partner with an outsourced accounting firm, you’ll pay a fixed monthly fee. Compared to the cost of hiring, training and resourcing staff, construction companies often experience huge savings when outsourcing, benefiting from fractional access to top accounting talent and economies of scale.
  • Efficiency: Outsourced construction accounting firms have tried and tested processes that can instantly upgrade your business’s accounting environment. That puts your company’s financial data at your fingertips in real time, helping you make decisions with a much higher degree of confidence.
  • Scalability: Your accounting needs aren’t necessarily consistent. Some months, you might need a lot of support preparing to secure bonding for a major project. In others, you might just need routine help. An outsourced construction accounting firm has the flexibility to scale their services up or down as the needs of your business change. They can also can grow with you long term as you expand into bigger, more ambitious projects.
  • Network: Outsourced construction CPAs often have a rich network of professional contacts that can help you grow your firm. Whether it’s an introduction to a bonding agent, surety company or legal professionals, the right outsourcing relationship can open your business up to a world of new opportunities.
  • Peace of Mind: When you outsource accounting to accredited experts, you can rest easy knowing that a team of dedicated professionals is keeping your financial information up to date. This frees you up to focus on more interesting tasks.

If possible, work with an outsourced accounting firm that provides a comprehensive range of accounting, tax and advisory solutions. If you need additional support, whether with tax planning, wealth management or HR consulting, you’ll already have a working relationship with a firm you trust.

James Moore: Experienced Construction CPAs and Advisors

At James Moore, our construction accounting team pairs accounting expertise with an intimate understanding of the construction industry. With a decades-long track record of providing outsourced accounting services to clients across a variety of sizes and industries, our team has the experience required to help you build a better future for your business.

Whether it’s producing accurate financial statements each month to help you understand project performance or helping you unlock the bonding capacity to take on larger projects, it’s our goal to serve as a true long-term partner.

Our outsourced construction accounting services are entirely customizable to the needs of your business. From routine tasks like processing payroll to partnering on long-term financial planning, our professionals will work with you to build your business on a firm financial foundation.

To learn more about James Moore’s outsourced construction accounting services, contact an advisor today.

 

All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a James Moore professional. James Moore will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.

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