Construction Excellence: Your Trusted Building Partner

Building A Stronger Foundation with MBE CPAs

Construction firms strongly emphasize achieving project efficiency and delivering high-quality results. You can enjoy client satisfaction, repeat business, and a strong reputation by prioritizing efficiency and quality. You may overlook critical variables that negatively impact profitability. Fluctuating overhead and materials costs, cash flow gaps, and other construction accounting issues are often disregarded, leading to reduced profitability, missed opportunities, and financial instability.
With over 40 years of industry experience, MBE CPAs is a trusted partner specializing in addressing construction firms’ financial and accounting challenges. Our range of services and strategies is designed to help you achieve project efficiency while maintaining profitability. We optimize financial processes, mitigate risks, and identify cost-saving opportunities to enhance the overall financial health of your business. By partnering with us, you can focus on what you do best – delivering high-quality construction projects.

Your Roadblocks to Success

Construction businesses have their fair share of challenges, from managing tight budgets to handling unexpected delays or changes. Where do you even begin? Our strategy involves taking a closer look at your pain points, carefully prioritizing them, and developing specific action plans to address each. By identifying the root causes of these challenges, we can create a better structure for your business and help you succeed. With our expertise, we can guide you through the process and provide valuable insights into improving your construction business. Let’s tackle these hurdles together and pave the way to your business’s bright future!

Keeping Up with the Economy

The construction industry has seen the worst in economic crises – the Great Recession bulldozed around 150,000 construction firms, leaving 2 million construction workers without jobs. Unfortunately, when a recession hits, cash flow is often one of the first things to dry up, leaving you struggling to maintain operations and look for new projects. The good news is, there are certainly ways to weather the storm and come out stronger on the other side. Whether it be cutting costs, securing materials financing, diversifying your services, or forming strategic partnerships, we’re here to guide you through the choppy waters of an economic downturn.

Managing Construction Costs

Construction firms face the growing challenge of managing costs as they navigate the ever-changing realities of inflation and supply chain hiccups. To keep projects on schedule, purchasing more materials than necessary may be tempting, but that can damage your overall cost in the short term.

As you juggle multiple projects and face staffing difficulties, it’s easy to lose track of expenditures and incur cost overruns that harm your profit margin. But fear not! You can keep your projects on budget and maintain healthy profit margins by implementing effective cost-management strategies and accounting practices. From job costing, tax-saving strategies, resource planning, and leveraging asset depreciation to recommending the best construction accounting software, our industry experts have you covered!

Unique Financial Reporting Methods and Tax Rules

Construction companies operate in a unique environment, with operations spread across various job sites instead of centralized in one location. This decentralized nature of production, along with long-term production cycles, brings its own set of complications when it comes to accounting and tax treatment. Thus, choosing the right accounting method(s) will enable you to track revenue and expenses accurately, manage cash flow effectively, and ensure compliance with financial regulations, which is vital.

Our team at MBE CPAs offers a comprehensive range of services designed to optimize financial processes for construction companies. From financial statement preparation and tax planning to construction-specific accounting software implementation, we have the expertise to help you accurately capture revenue and expenses, mitigate tax risks, and implement efficient financial processes.

Skilled Labor Shortage

As the construction industry expands, the need for skilled workers like carpenters, electricians, and plumbers becomes more urgent. Unfortunately, the industry faces a serious labor crunch for several reasons, including the retiring workforce and a lack of interest among younger generations.

At MBE CPAs, we recognize the importance of having a skilled team to execute your projects efficiently. We can help you fill the labor gap and improve your retention rates through specialized services beyond accounting – workforce planning and other HR solutions, payroll & timekeeping, automated HCM solutions, retirement planning, 401k audit, and more!

Every Construction Company’s Ultimate Toolbox

Conquer your construction challenges with solutions that work.

Accurate Revenue Recognition and Optimized Financial Processes

Accounting for construction companies goes beyond basic bookkeeping. The intricacies of revenue recognition, expense tracking, and tax implications make construction accounting a specialized field. We provide support on critical decisions and offer advice on accounting methods to ensure that you optimize your financial processes, maximize your profitability, and capture your expenses appropriately.

Tax-Saving Strategies for Maximum Profitability

Our team of experienced tax professionals will work closely with you to develop a comprehensive tax strategy that maximizes your tax savings while ensuring compliance with all relevant tax laws. One tax-saving strategy we can help you leverage is asset depreciation. We have extensive knowledge of the depreciation rules and regulations specific to construction companies. We will ensure that you are taking advantage of all available depreciation methods, allowing you to maximize your deductions and improve your cash flow.

Construction-Specific Sales & Use Tax Consulting

Unlike other industries where sales and use tax compliance is relatively straightforward, the construction industry often involves complex transactions and special rules that can make compliance difficult. One of the main challenges in the construction industry is determining which transactions are subject to sales and use tax. Our experienced tax consultants can help you track the taxability of transactions, building materials, and supplies, understand their varying tax treatment, ensure compliance with regulations, and identify potential tax-saving opportunities.

Steady Cash Flow and Secure Financial Future

We know getting your clients to pay on time can be an uphill battle, leaving you strapped for cash and with little to no upfront capital for your next project. Furthermore, the long-term production cycles of construction companies widen the gap between when revenue is earned and when it is billed, thereby affecting cash flow.

Our comprehensive suite of services is designed to help construction businesses maintain steady cash flows that can withstand economic uncertainties and payment delays while considering the unique characteristics of construction companies.

Cash Flow Analysis

We identify potential cash flow gaps, develop effective strategies to address them, and equip you with the tools and insights needed to maintain a healthy cash flow, meet financial obligations, and seize growth opportunities.

Financial & Business Review & Audit

We comprehensively review your financial systems, processes, and controls, identifying weaknesses and recommending improvements.

Construction Resource Planning: The Key to Project Success

By leveraging the power of advanced technology and industry best practices, we will guide you through effectively planning and managing your construction resources for optimal project efficiency and success. You can expect improved cost estimation, budgeting, and tracking capabilities that will enable you to reduce costs and maximize profitability.

Building a Strong and Reliable Workforce

Having a skilled workforce is vital to the success of your construction projects. Our Human Resources partner, Workforce Solutions, offers various HR solutions – talent acquisition, workforce planning, HR compliance, and employee engagement. With extensive industry experience, they can help you develop and implement tailored recruitment strategies and retention initiatives so you can enhance project productivity and boost job satisfaction and commitment.

Cash to Accrual or Completed Contract vs. % Completed

At our CPA firm, we understand how crucial it is for construction owners to make informed decisions based on reliable financial information. That’s why we offer expertise in accounting methods such as cash basis accounting and accrual basis accounting, which record income and expenses differently. Cash basis accounting records when cash is received or paid, while accrual-basis accounting recognizes income and expenses when they are earned or incurred, regardless of when cash transactions occur. By helping construction owners select the appropriate accounting method, such as accrual accounting, we enable them to have accurate financial reporting for decision-making, assess project profitability, manage cash flow effectively, comply with accounting standards and tax regulations, and ensure the viability of their projects in the long term. Our knowledge of the industry and its regulatory environment will guide our clients through the complexities, making effective and profitable decisions throughout their business endeavors.