Hiring the Right CPA For Your Construction Company
Many construction companies reach a point in their growth when the financial side of running their business just becomes too much to handle on their own. In most cases, this is a good thing. It means more work, more profits, and less time and capacity to be tied down filing taxes and keeping the books in order.
That’s where a CPA can help out. But a CPA can do more than just file your taxes. The right CPA will be an important asset to your business team. So it’s important take the time to find one that not only knows the construction industry well, but one you know shares and supports your company’s values.
CPAs can provide year-round counsel, giving you regular finance reports to help keep you on track and stay in the know. These reports can include valuable information such as profit and loss statements, accounts payable & accounts receivable, WIP reports, and KPI measurements. Beyond that, your CPA can also offer audit & assurance services, risk management advice, payroll plans, assist you with long-term strategic planning, and more.
So how do you find and choose the right CPA for your construction business?
First, think about your company and its current financial and accounting needs. Where are you losing the most time or struggling the most? Next, consider your long-term goals. Would you like to purchase a new office within the next five years? A new fleet of trucks?
As for seeking out candidates, sure, you could do a quick Google search and meet with the first few CPAs you find in your area, or get in touch with the same guy your brother-in-law uses to oversee his real estate company’s finances. But what you really need is a CPA who knows your industry. From understanding specific tax credits to tracking industry trends and knowing how to avoid risk, a construction savvy CPA can make a big difference in your company’s financial wellbeing.
One of the first places to seek out qualified CPAs is through your own network. Talk to partners, clients, and other industry contacts and create a list of CPAs which they use and would be willing to vouch for. This way, you know the candidates have at least some industry knowledge and also come with a recommendation from someone you trust.
When meeting with potential hires, remember back to those two points brought up earlier about your accounting needs and your long-term goals. Having a candid discussion with them about these topics will allow you both to get familiar with one another on a personal level, and ultimately help you decide if they are the person you are going to trust with your company’s money on the line. It will also give the CPA on the other side of the table a good look into the current operations of your company along with your goals, allowing them to make an honest assessment of how they can help.
Whatever you do, make sure you are always on the same page as your CPA and in constant communication. If you are only in touch with your CPA around tax time, you are really missing out on a whole scope of services they can offer to help grow the financial wealth of your construction business.
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