Every business should have an A Team. Your A Team is includes your trusted accountant, attorney and financial advisor. Having a strategic A Team in place allows your advisors to work together on the big picture.
Your A team is at the heart of your success as a construction company. Filling your accounting and legal positions with CPAs and an attorneys that specialize in the construction industry is just as important as drafting the best on-site professional that you can.
What is a construction accountant?
A construction accountant maintains the same high standards as a standard CPA, but a construction accountant takes their knowledge and focuses it squarely on the construction industry. In addition to experience with a variety of contractors in the construction industry, a construction CPA may also be certified by an industry association like the Construction Financial Management Association.
Why do I need a construction CPA?
Contractors often need more than basic tax and compliance services. Construction-specific CPAs better understand the specific concerns contractors face, including the different reporting needs, like WIP (work-in-progress) statements, and risk and cost controls.
Every construction company is unique, so having a specialized construction CPA apply a detailed and proactive approach across your business, from operations management to staying on top of new tax laws, will help keep your company in a solid – and growing – financial state. For example, something like cost accounting is vital to the health of a construction company. A construction CPA is very precise and can catch small mistakes early that can be very costly down the line.
What is a construction attorney?
Like a construction CPA, a construction attorney focuses their expertise on the construction industry, giving them a deep, expert-level understanding of construction law. Construction law involves a number of areas specific to the industry, like alternative dispute.
Why do I need a construction attorney?
Construction attorneys specifically concentrate on the construction industry, so they continue to build on their practical experience, making them an indispensable resource for any contractor. By taking a similarly proactive approach as a construction CPA, a construction attorney will be able to prepare for potential issues and prevent small issues from becoming much bigger.
Do construction accountants and attorneys work together?
Yes, construction attorneys and accountants work together as part of an A Team. A great example of this team work is bonding. A contractor’s financial strength is heavily reliant on their ability to put up a construction bond. Having a licensed and certified construction CPA produce quality financial statements will allow for a higher level of confidence from a surety, leading to a higher bonding capacity. When a surety writes a bond, they are not anticipating a loss, so it’s important to have an experienced construction attorney review the contract to help avoid future claims and further protect the contractor.
Corrigan Krause Specializes in Construction Accounting
Corrigan Krause has an entire team dedicated to the construction industry. For more information on becoming a client of the Construction Services team at Corrigan Krause, email info@corrigankrause.com. To join our Construction Services newsletter, click here.
