Tips for Working With Professional Construction Accounting Firms

StrategyDriven Managing Your Finances Article | Tips for Working With Professional Construction Accounting Firms

Construction companies need reliable financial reporting to track expenses, recognize revenue, and manage cash flow. A general bookkeeper or inexperienced CPA must address this.

The right accounting firm will understand the unique challenges of construction accounting. They will use their industry knowledge to help you optimize your finances and prepare for growth.


The best construction accounting firms have vast experience managing these clients’ unique financial management needs. Developing deep domain expertise in the construction industry allows them to offer valuable value-added services like estimating and budgeting, project cost tracking, progress billing, and software implementation. Additionally, a firm that works closely with many construction firms understands specialized rules and regulations regarding job-costing methods, revenue recognition, and tax laws.

Professionals working with construction businesses have also mastered accrual accounting, which differs from cash accounting in that it records income when the company earns it rather than when it receives payment for the work. This helps construction companies keep track of their finances and make informed decisions about how to bid on projects, manage profit margins, and bill customers accurately.

An excellent CPA for construction firms can also help their clients prepare and file taxes, reducing their risk of audits, penalties, and fines. They can also advise on the latest changes to reporting standards and tax laws that may impact their clients’ business operations.


It is essential to find a firm that understands the unique accounting requirements of construction firms. Construction bookkeeping is much more complex than traditional general accounting. It requires a specific approach incorporating software programs that allow workers in the field, business owners, and accountants to submit data on costing through a platform.

Additionally, construction accounting is project-centric. A construction firm needs a way to manage, categorize, and report transactions for each job to prepare taxes and ensure that service pricing is accurate. This is known as job costing.

Expertise is often considered a given talent, like Tiger Woods or Michael Jordan in sports, Albert Einstein in science, Wolfgang Amadeus Mozart in music, Bill Gates or Warren Buffett in business. However, research shows that expertise is not a given but a skill built through practice and experience. According to Hatano and Inagaki, experts develop their knowledge by seeking new problems, requiring them to apply different procedures and strategies. In addition, they seek out feedback on their work.


Accurate accounting is essential for bidding on projects, determining profitable ones, and billing clients accurately in the construction business. It can also help ensure compliance with regulatory requirements and industry best practices. A reputable CPA firm with intimate market knowledge can advise contractors on spending decisions, such as buying or leasing equipment.

Many companies offer a wide range of services beyond basic accounting. These might include budgeting and forecasting, cash flow management, risk management consulting, software implementation for job costing and project tracking, and dispute resolution with subcontractors or suppliers.

Specialized accounting for the construction industry can address unique challenges arising from time-consuming tasks like work-in-progress reports, calculating overhead, and using technical tax elections. A seasoned accounting professional can also advise on strategies to minimize tax liability and maximize deductions, including deducting mileage for travel to and from job sites. This is important because a company’s ability to take advantage of tax deductions can significantly impact its bottom line.


Reputation is more than “what you know” or “what others think.” It includes all the aspects of a business that are not readily visible. This consists of the ability to work effectively with clients, partners, and other stakeholders in the industry. The construction accounting firm you choose should be able to build and maintain an appropriate reputation in your local market.

Having a CPA who is well-versed in the unique complexities of construction accounting and is actively engaged with a wide range of clients is essential for addressing issues that arise. They can help ensure your company is compliant, avoids costly practices, and maximizes its financial processes and growth potential.

For example, the right firm will have expertise in state and local taxes (SALT) and how they affect your costs. They will also be aware of new accounting pronouncements and their impact on the way you recognize revenue and lease obligations. They can help you develop cost allocation strategies consistent with your business model and optimize tax reporting. They can also help you implement a software program to make job costing much more accessible and ensure the information is available to your employees and accounting partners.


The right personality is essential to the success of a CPA firm. While most firms can answer the basic questions, such as “How often do you meet?” and “What are your fees?”, the best ones can distinguish themselves by displaying an extroverted nature, superior communication skills, comfort with public speaking, and other traits. Moreover, it’s important to note that every business is different and requires unique daily operations. For example, contractors must stagger their recognition of income to avoid pushing themselves into a higher tax bracket in a good year. An accounting firm can help in achieving this by providing strategic advice.

5 Ways to Finance a Car: Their Pros and Cons Compared

StrategyDriven Managing Your Finances Article | 5 Ways to Finance a Car: Their Pros and Cons Compared

Whether you’re buying a new or used car, you’ll quickly find that they are more expensive than ever before. To make reliable transportation affordable, most buyers turn to some type of financing. If you’re not paying cash, you’ll want to look for the lowest auto loan rates you can find.

1. Traditional Auto Loans

If you have decent credit and a down payment, you can get a traditional auto loan. If you make your payments on time, these loans will improve your credit score. But, the best way to get a good interest rate and decent term is to already have good credit. The financing team at your local dealership will run your credit score to build a loan that fits your budget and needs.


  • Affordable monthly payments when terms are extended beyond 48 months
  • Help your credit score


  • Short-term loans will have high payments
  • Interest rates increase if you have poor credit

2. Auto Lease

If you’re shopping for a new car and you want a low monthly payment, choose a lease. These function like long-term rentals usually with terms between 12 months and 36 months. At the end of the lease you’ll have to return the car or buy it. All leases have mileage limits and exceeding them can be costly.


  • Affordable monthly payments
  • You’ll always have a manufacturer’s warranty


  • Mileage limits
  • Plenty of fees

3. Pay With a Credit Card

If you are buying a used car and you have plenty of space on your credit card, you can buy a car with it. The auto industry has limits to the total you can put on your credit card, but if you have more than one, you can spread out the payment.


  • You don’t need a credit check
  • Easy way to buy a car


  • Crazy-high interest rates
  • Can max out your credit cars for extended time periods

4. Get a Personal Loan

Consumers who don’t want to deal with automotive financing can ask for a personal loan from their local bank or another lender. You might already have a line of credit at your bank, and you can use it for car purchases or anything else you’d like. It’s an easy way to buy a car, but beware of defaults, especially if the line of credit is attached to collateral like your home or another high-end asset.


  • No credit check required
  • Easy way to purchase any expensive item


  • Can tie-up your personal loan or line-of-credit if you don’t pay it off quickly.
  • Possible higher interest rate than an auto loan
  • Could be tied to your home or other assets

5. Hire Purchase with 10% Down

This unique auto loan is a good choice for people with poor credit. When you finance a car this way, the car is the security for the loan. You put about 10% down, then make your monthly payments. At the end of the loan, you’ll own the car. This differs from a traditional auto loan where you can sell the car before you pay it off, as long as you pay off what you owe on the loan.


  • Affordable financing for people with poor credit
  • Easy way to drive off the lot with a new car


  • Stringent requirements
  • Easy repossessions
  • Difficult to change the contract

The Role of Due Diligence in Business Transactions

Strategydriven Managing Your Finances Article | The Role of Due Diligence in Business Transactions

Due diligence involves reviewing information thoroughly before a transaction takes place. This process can last weeks or months.

There are two types of due diligence. Hard DD investigates data and facts, including legal structures, ownership, securities laws compliance, stockholder agreements, insurance information, and regulations. The other, soft DD, investigates the human element of an acquisition, such as culture and leadership.

Legal Issues

Companies must conduct thorough due diligence before committing to business transactions, as you would only buy a house by checking its foundations, plumbing, and other internal components. It’s a way to verify a deal’s critical aspects and uncover potential hidden costs, risks, or liabilities that could spell disaster for the transaction.

Legal due diligence involves reviewing contracts, agreements, and other documentation to understand the company’s legal status and ensure no significant issues arise after a merger or acquisition. It is vital for businesses that operate in highly regulated industries.

In-depth due diligence evaluates technology, operations, and regulatory risk to help investors like Zack Schuch assess terms and valuation more accurately. It also looks into culture and people to determine if current employees will accept a change in their working environment. Additionally, it can assist them in identifying problems that could make a transaction impracticable or alter their interest in it.

Commercial Issues

Specific commercial issues need attention during due diligence, depending on the deal type. For example, a buyer might want to evaluate a target entity’s financial and operational details and verify its reported information’s accuracy. They may also need to investigate how the target is structured and whether it complies with local tax laws.

In addition, buyers should conduct thorough commercial due diligence before closing the deal by reviewing material customer contracts and other commercial arrangements that could be affected by a transaction. They should also diligence the target regulatory compliance history to ensure that a transaction won’t violate antitrust and foreign investment rules.

Performing due diligence requires time and resources, but it can safeguard businesses from potentially costly mistakes and provide a path toward profitable decisions. Using the right tools and processes, M&A professionals can maximize efficiencies, generate valuable insights, and ensure outcomes that benefit all parties involved.

Valuation Issues

Buyers such as CEO Zack Schuch will examine the financial standing of the firm they are trying to purchase during due diligence. It aids in assessing whether the purchase price fits their investment criteria and is reasonable for the aim. A thorough examination can uncover assets and hidden liabilities that could influence the price.

The process must also uncover potential risks that could make a deal risky or unprofitable, such as undisclosed debt, legal disputes, or inefficient operations. This information informs the decision-making process and can help avoid costly mistakes.

Performing due diligence requires time and resources, but it can be crucial in making an informed business transaction. With verified information and risk assessments, buyers can feel confident that their acquisition will succeed. Otherwise, they might be forced to walk away from a lucrative opportunity. Alternatively, expertly honed due diligence can help them find ways to mitigate the risks and achieve their desired outcomes. That makes it a vital tool in any business transaction.

Financial Issues

In the financial sphere, due diligence is an essential tool that helps ensure that the numbers pan out. It also clarifies the risks of a particular transaction and allows companies to make informed decisions.

For example, during financial due diligence on a company to be acquired, an acquirer might uncover that the business is highly dependent on a few critical clients for revenue (an issue that would fall under commercial due diligence). In this case, it may be necessary to renegotiate a price to reflect the high risk or create a strategic plan for diversifying customer relationships post-acquisition.

In addition, in the case of M&A transactions, due diligence will uncover many issues related to contracts, liabilities, pending or potential lawsuits, and other legal matters that can affect how a deal is structured and completed. A legal team often does this type of due diligence. But it may also be conducted by a board committee, which can bring additional expertise.

Strategies for Successful Business Finance

StrategyDriven Managing Your Finances Article | Strategies for Successful Business Finance

Effective financial management is a cornerstone of successful business operations. Without sound financial strategies, even the most innovative and promising ventures can stumble and fail. In this ever-evolving and competitive business landscape, entrepreneurs and business leaders must employ strategies that enable them not only to survive but thrive financially. Here, we will delve into some key strategies for successful business finance, highlighting the importance of financial planning, efficient budgeting, smart investments, and risk management.

1. Financial Planning

One of the first and most critical steps in achieving business financial success is creating a comprehensive financial plan. This plan should outline the company’s short-term and long-term financial goals, as well as the strategies to achieve them. A well-crafted financial plan considers revenue projections, cost estimates, cash flow management, and growth strategies. It provides a roadmap that guides decision-making and helps the business adapt to changing market conditions. NetSuite Outsourced Accounting can enhance a company’s financial management by leveraging its expertise and technology, ensuring cost-effectiveness and efficiency in managing finances.

2. Efficient Budgeting

Budgeting is the backbone of any successful business. A carefully structured budget ensures that a company’s resources are allocated wisely, and expenses are controlled. Effective budgeting involves not only creating an initial budget but also monitoring it regularly to identify any discrepancies and make necessary adjustments. Business leaders should prioritize essential expenses, avoid unnecessary costs, and maintain a financial cushion for unforeseen challenges.

3. Cash Flow Management

Managing cash flow is fundamental to the health of any business. A healthy cash flow ensures a company can meet its financial obligations, invest in growth opportunities, and weather economic storms. To optimize cash flow, businesses must streamline their receivables and payables processes, reduce inventory carrying costs, and consider options like credit lines and short-term loans when needed.

4. Smart Investments

Investing wisely is a key aspect of achieving financial success. Businesses should evaluate potential investment opportunities, whether in new equipment, technology, marketing, or expansion, with a critical eye. A return on investment (ROI) analysis is essential to determine whether an investment will bring a positive financial impact in the long run. Additionally, diversifying assets can help spread risk and enhance the company’s financial stability.

5. Debt Management

While taking on debt can be a strategic move to fuel growth, it’s crucial to manage debt responsibly. Businesses should consider the interest rates, terms, and repayment schedules of loans and lines of credit. It’s essential to balance leveraging debt for growth and avoiding excessive debt that could lead to financial strain. Proper debt management can help companies maintain a healthy credit profile and access capital when needed.

6. Risk Management

Successful business finance also involves proactive risk management. This includes identifying and mitigating potential risks, such as economic downturns, supply chain disruptions, or unforeseen disasters. Companies should have risk management plans, including insurance coverage, emergency funds, and contingency plans. Being prepared for unexpected events can prevent significant financial setbacks.

7. Financial Reporting and Analysis

Regular financial reporting and analysis are essential for making informed decisions. Financial reports provide insights into a company’s performance, allowing business leaders to identify areas of improvement and adjust strategies accordingly. In addition to standard financial statements, key performance indicators (KPIs) should be tracked to measure progress toward financial goals.

8. Tax Planning

Proactive tax planning can help businesses maximize their after-tax profits. By understanding tax laws and regulations and leveraging available deductions and credits, companies can reduce their tax burden legally. Tax planning should be an ongoing process, and it’s often advisable to consult with tax professionals to ensure compliance and optimization.

In conclusion, implementing sound financial strategies is vital for the success and longevity of any business. A well-defined financial plan, efficient budgeting, smart investments, debt management, risk mitigation, financial reporting, and tax planning are all integral components of a comprehensive financial strategy. By adopting these strategies and adapting them to their specific circumstances, businesses can build a strong financial foundation and thrive in today’s competitive business environment.

How to Work Out What to Do with Your Excess Business Profits

StrategyDriven Managing Your Finances Article | How to Work Out What to Do with Your Excess Business Profits

It can be difficult to work out what to do with your excess business profits in order to make the most of them, especially once you have used some of them to reinvest in your business. If you are uncertain, this guide may be able to help you to use your business profits well- and even grow them.

Look At Your Investment Options

When your business is making a lot of profit, you should consider growing this wealth even more by making an investment. However, there are many different types of investment out there, from bonds and dividends to real estate and cryptocurrency. To ensure that you are making the right choice for you and your business, you should survey all the potential investments that could benefit you and research them as much as possible. You might even speak to other businesspeople and competitors who might previously have made an investment, as this can allow you to see whether the investment you have in mind will be a success or not.

Speak to a Financial Planning Service

If you are struggling to work out what to do with your excess business profits on your own, you should consider hiring a financial planning service. This service will be able to help you make personalized investments that have been tailored to your specific circumstances and needs. They will also be able to ensure that you can make an investment that is in line with your business goals. This can avoid any regret that might come with an investment and will allow you to limit the amount of risk that you are taking. By hiring a financial planning service, you will be able to check that your investment has a positive effect on your business and that you are distributing your profits in a beneficial manner.

Put Your Eggs in Multiple Baskets

Rather than using your profits in a single way, you should consider putting your eggs in multiple baskets. This will ensure that if something goes wrong, you will not fall into financial issues and that you will still have the bulk of your business profits to play with. This can stop your company from going down the drain due to any poor financial decisions that you decide to make. For instance, you might decide to make a couple of investments, reinvest into your business, pay off your debt, and employ services that could help your company to thrive in the future.

Organize Your Finances

Before you work out what to do with your business profits, you should first organize your finances. By doing this, you will be able to gain a clearer idea of your financial situation and the amount of profit that you are making, as well as which investment will best help your company. You can do this by clearing up your financial records and using accounting software. You might even decide to hire an accountant who may be able to straighten out your books and track your expenditures better than you could yourself.