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Construction Accounting

Reliable Construction Accounting Services in Jacksonville

businessman and engineer shaking handsJames and Harris CPAs, PA, provides specialized accounting support for businesses in the construction industry. We are wholly invested in your company's success and continuously seek ways to protect your revenue, optimize your operations, and minimize your tax liabilities.

Whether you seek assistance with crafting a business plan or need bookkeeping services, our highly skilled CPAs can help. We serve builders, general contractors, and all professionals in the construction industry. By outsourcing your accounting to us, you only pay for the services you want. Contact our Jacksonville construction accountants today to schedule your consultation!

Call Us: (904) 389-2725 Book a Consultation

How Construction Accounting is Different

While precise accounting is crucial for any business's success, the construction industry needs an accountant who understands the ins and outs of this type of business. James and Harris CPAs, PA will help set up your accounting system properly and train your personnel appropriately.

Our skilled Jacksonville CPAs will help you simplify the detailed reports and reconcile accounts. Additionally, we offer specialized support with the following accounting tasks:

Optimal Job Costing Services

Most businesses only require the general accounting ledger (G/L) to help them track transactions that impact the entire company's financial picture. However, construction accounting is project-centered, and the production is decentralized. Construction companies also need a way to track and report transactions specific to every job efficiently.

businessman using calculatorOur CPAs are skilled in job costing to help you track costs to particular projects and production activities. In construction accounting, G/L and job costing work together like your right and left hands. While the G/L looks across your whole company, job costing looks at the project level. And where the G/L encompasses accounts (such as materials expenses or A/P), job costing is typically made up of:

  • Individual projects
  • Cost activities such as foundation or framing
  • Cost types such as labor or materials

Additionally, job costing measures several different aspects of a construction project to enhance estimates and budgeting. While financial reporting from the G/L simply looks at dollars, our CPAs can use job costing to help you track physical completion (in units), labor used (in hours), and costs faced (in dollars).

Ultimately, our goal with job costing services is to help you figure out your real costs and profitability, which is often very difficult to achieve in an industry with numerous variables for every contract. Our skilled Jacksonville CPAs can quantify your work since your company last billed the job owner and help you improve your value and increase your bonding capacity. We also provide essential insights to inform your estimating, budgeting, and decision-making going forward.

Specialized Construction Billing

Many industries operate based on fixed-price, point-of-sale billing, but that is not always the case with the construction industry. Since construction production is typically project-based, long-term, and decentralized, contractors can use several billing styles and methods. At James and Harris CPAs, PA, we use specialized software to track and create construction billings.

Some of the most common contract types and billing formats we use include:

Fixed Price: Also referred to as a lump-sum contract, fixed price billing generates a detailed estimate of the entire project's total cost. It can be executed either as a fixed-price hard bid or fixed-price negotiated.

Time and Material: This type of billing bases the contract price on a per-hour labor rate and the cost of materials used. You can choose to apply a standard markup to build your profit percentage into the total amount and account for the overhead cost.

Unit Price: A unit-price contract allows you to bill a customer at a fixed price-per-unit rate. This is especially useful if you cannot estimate the unit production for the construction project with certainty.

AIA Progress Billing: The American Institute of Architects (AIA) process billing invoices to customers based on the percentage of work accomplished for that billing period. The invoice generally includes a signed summary sheet plus a schedule of values that details what has been completed and billed to date.

At James and Harris CPAs, PA, we understand that your business is project-based and that billing may vary per project. We offer accurate construction billing to help improve your value measurements. Our experienced CPAs will also calculate costs and earnings over billings and provide you with accounting bond reviews.

Accounting Services for Your Jacksonville Construction Businesses

At James and Harris CPAs, PA, our goal is to deliver reliable and effective accounting solutions personalized to the needs of the construction industry. Our CPAs provide business accounting, bookkeeping, construction billing, job costing, and other accounting services backed by decades of experience.

We proudly serve businesses in Jacksonville and the surrounding areas. We are always honest, trustworthy, and reliable. Contact our experienced professionals today to schedule your free consultation!

Call Us: (904) 389-2725 Book a Consultation

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