Construction Industry Accounting 2017-08-25T17:23:58+00:00

Construction Industry

For more than 60 years, Draffin & Tucker has provided accounting, audit and tax expertise to construction clients throughout the Southeast. During this time, our professionals have developed an unparalleled understanding of the construction industry, including the unique opportunities and challenges that our clients face. Some of the areas we serve include:

  • Electrical Contractors
  • Developers
  • Road and Highway Builders
  • Concrete & Asphalt Manufacturing and Paving
  • Roofers
  • Project Management Firms
  • Real Estate Investors
  • Homebuilders
  • Equipment Dealer

For these areas of the construction industry, Draffin & Tucker provides the following services:

For many construction contractors, the importance of quality financial statements is of utmost importance. For those in need of project/performance bonding, the financial statements dictate the bonding capacity and rates afforded by the surety. Draffin & Tucker understands this relationship, and we work to ensure financial statements for which we provide attestation services are of the highest quality. From the schedule of contract revenues to additional statement in the footnotes, we ensure the presentation of the financial information allows the surety to make a fair determination of the terms of the bonding.

Whether your company is subject to an audit, review or compilation under the terms of a bond or due to governmental contracts or lending covenants, Draffin & Tucker is prepared to provide a quality product in a timely manner.

For companies sponsoring employee benefit plans with 100 or more eligible participants, the plans may be subject to an audit of the financial statements. Draffin & Tucker has extensive employee benefit plan experience and offers the plan a product that reaches beyond regulatory compliance and includes recommendations to improve plan administration.

Many business owners will only own one or two businesses in their lifetime. This is particularly true of business owners in construction services, where relationships and longevity are hallmarks of a successful operation. While these attributes make these businesses efficient and successful from an operational standpoint, there may be a lack of experience when it comes to some of the major lifecycle decisions of the business. With more than 60 years of experience in consulting with various sectors of the construction industry, we have seen numerous variations of the lifecycle decisions, and we have an appreciation and understanding of where the risks and rewards lie.

Whether it is determining the tax consequences of a particular business structure, determining the benefits of a cost segregation study, setting up the required filings for a new business or determining the applicability of the latest tax credit to your business, our commercial services team is ready and able to assist you in making these and other determinations. Our team will conduct the research and prepare the analysis to assist you in making the best decisions for your business, allowing you to focus your attention and efforts on growing your business.

The following services are indicative of some of our specific areas of expertise:

  • Cash Flow and Operations Management Analysis
  • Entity Selection and New Business Filings
  • Expansion and Acquisition Analysis
  • Preparation and Review of State Prequalification Reports
  • Review and Analysis of §1031, Like Kind Exchanges
  • Review and Analysis of Asset Purchase Agreements
  • Review and Analysis of Financing Arrangements
  • Review and Preparation of Bonding Reports
  • Review and Structuring of Buy-Sell Arrangements
  • Review and Structuring of Compensation Arrangements
  • Review and Structuring of Leasing Arrangements
  • ROI and Fund Management Analysis

For many family owned businesses, there is a presumption that the torch will one day pass to the next generation. Additionally, while the transition of management and operational duties is important, equally so is the preservation of value to the heirs.

Without a succession plan, the value of the business operations may deteriorate quickly following the passing of the owner. We have advised and consulted on a variety of succession plans, whether to a child, partner, key employee or capital investment group, which allows us to present the numerous options available. With client confidentiality of utmost concern, our clients can be assured that the discussions are secure and that the planning will be solid. We work closely, on a collaborative basis, with other professionals, including attorneys and insurance providers, to ensure the wishes of our clients are fulfilled in the plan chosen.

While no one wants the assets he or she acquired over a lifetime to go to the IRS instead of his or her heirs, for those in the construction industry, losing the family business can be an especially devastating blow, both emotionally and financially. One of the most sensitive planning subjects individuals face during their lifetimes is the planning for their possessions after they have passed. While our backgrounds are in taxation, when it comes to estate planning, our primary focus is fulfilling the nonfinancial desires of our clients.

Many planners in this area have a preconceived plan in mind based solely on an introductory telephone conversation. At Draffin & Tucker, we take the time to learn the details of our clients and their families that make their individual plan unique. We then work with attorneys and financial advisors to implement a plan that both achieves the non-financial goals and minimizes the amount of transfer taxes (gift and estate taxes) paid and preserves the most value for the heirs.

For many in the construction industry, having a full accounting department is a luxury that they simply cannot afford.

Draffin & Tucker has a dedicated team of bookkeepers with years of experience in working with companies of various sizes to ensure that the company books are clean and organized. We serve as the accounting department for your business. Working closely with our clients, the bookkeeping team assists in making adjustments and corrections to the books to accurately reflect the operations of the company. At the end of each month, the bookkeeping team communicates with the appropriate personnel to ensure that any adjustments are understood and to make suggestions to increase the efficiency of the process and the proficiency of such personnel.

The result is a set of clean and accurate financial records that allows the owners and those in management positions to make well-informed decisions with timely financial information. This monthly review process also allows Draffin & Tucker to provide proactive advice on potential planning opportunities, which may yield significant benefits, including tax savings and enhanced cash flow.

Taxes can be one of the largest expenses of a business. However, with the proper planning and strategic implementation, they can be significantly reduced. With our highly trained and well-experienced team, we can assist in the year-end planning to determine how to strategically reduce the tax liability of the business, while ensuring the soundness of the implemented plan. By maintaining contact with and being a resource to our clients throughout the year, we are able to provide relevant and timely advice to take advantage of opportunities as they arise. Whether it is analyzing the benefits of accelerated depreciation from new equipment purchases or considering the available accounting methods for long term contracts.

Once the planning is complete and the books have been closed, our team is ready to prepare the appropriate filings to ensure compliance with the taxing authorities and to ensure that the results of the planning strategies are fully realized. Our client centric approach ensures that the planning implemented in the business properly flows into the returns of the individual owners.

In addition to serving clients within a broad spectrum of the construction industry, we also stay informed of issues and changes by maintaining our affiliations with regional and national associations specific to the construction industry.

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Contact our Construction Accounting Specialists

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