Are you working with the right CPA?
As a construction company you know how important your numbers are when it comes to estimating a project. Similarly your back office numbers are as impermanent of not more. Like with a good bid estimate, you need to have someone review your numbers to make sure you didn’t miss anything. Having a good construction CPA could be critical to your companies success. A CPA statement will also help with your bond approval and banking relationship. But how do you choose the right CPA?
Here are 5 tips to help you choose the right CPA.
- Taxes Vs. Bonding: A construction oriented CPA will understand the balance between saving money on taxes as well as investing in your company equity. Equity and working capital drive your bond program as well as how much the bank will approve you for a loan.
- Can you help you with job costing: your CPA should be giving you advice on tracking your projects costs and allocating proper overhead to each project. Most contractors don’t understand all their true costs on a project and having a good system is critical, especially for a growing company.
- Does your CPA work with other contractors? Ask them for a reference. If they are working with your cousin who owns a restaurant and also helping you with your construction company, they are probably not the right fit.
- Ask for a sample percentage of completion statement. If they don’t know what percentage of completion is, run!
- Check out CFMA (Construction Financial Management Association) or CICPAC (Construction Industry CPAs and Consultants and see if the firm you are talking to is listed.
Finally, contact us at District Bonding and we would be happy to introduce you the a good construction CPA.