Construction Industry Services
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Successful management of a contractor’s business is dependent upon many factors that are unique to the industry. Understanding the complex accounting, tax and business issues common to the construction industry enable us to provide you with the tools of your trade that are necessary for financial success. Bechtel, Kopin & Company, PC is dedicated to providing quality services that meet our client’s needs and we are a New York State Certified WBE.
Assistance with obtaining bonding
Surety underwriters, bankers, state contract licensing and other governmental agencies require annual reviewed or audited financial statements in order to provide the necessary insurance, funding, and licensing needed for construction contracts. We assist contractors in this process by:
Development of systems to produce timely and accurate records
Timely and accurate financial information about completed contracts and those in process are vital to adequately estimate project profitability. Inadequate cost and project management systems hinder the contractor’s ability to closely manage projects and detect potential problems early on. Additionally, financial information must be understandable to be of any use to the contractor. We assist contractors with the implementation of accounting systems including:
Preparation of compiled, reviewed, and audited financial statements
Financial statements prepared in conformity with generally accepted accounting principles are of utmost importance with third parties. Depending on the bonding company, size of the construction contract, bank and/or amount of financing needed, these third parties need assurance and normally require annual audited or reviewed financial statements. They sometimes accept compiled statements for interim reporting such as on a quarterly basis. Additionally, partners, investors or project owners of Low Income Housing Tax Credit (LIHTC) projects may require annual audited financial statements. We specialize in the accounting and disclosure issues unique to the construction industry and can provide each level of service as needed.
Tax planning and preparation
The tax treatment of certain transactions may differ from the accounting treatment required by generally accepted accounting principles. This could result in significant tax savings if planned ahead. Conversely, it could result in significant tax liability if not evaluated and handled in a timely manner. We are available throughout the year to analyze your financial records and discuss tax planning issues relevant to your business. When it’s tax time, we will also prepare your respective income tax returns.
Cost Certification Audits for Low Income Housing Tax Credits
A tax attribute unique to the construction industry is the federal LIHTC that was established to encourage and finance new construction and rehabilitation of existing housing for low-income households. One of the federal and state requirements to qualify for the LIHTC is an audited cost certification schedule. This certification may be required on an interim basis (ten percent carryover certifications) in addition to the final cost certification. We can assist you in qualifying for the LIHTC by providing the necessary audit services required by the federal and state government.
Domestic Production Activities Deduction
The American Jobs Creation Act of 2004 authorized a deduction for income attributable to certain manufacturing and domestic production activities conducted in the U.S. (the domestic production activities deduction, or DPAD). It is important to have adequate accounting systems in place to identify the items that are allowable and to facilitate the proper calculation of this deduction. We can evaluate your eligibility for the DPAD and assist you in implementing an adequate accounting system.
