Building Together

Never is the need more pronounced than in the construction industry to choose a CPA firm that has specific industry experience. Accounting in the construction industry is filled with countless nuances. Most often the client-accountant relationship goes beyond the numbers. It is likely that the role of the public accountant will morph into that of a primary outside business advisor. In view of this relationship (particularly in the case of smaller organizations) industry experience is of considerable importance in the selection process. With its unique accounting principles, auditing requirements and tax regulations governing the construction industry, the selection of a qualified CPA firm bears significant importance.

Investors, credit grantors and surety companies frequently require annual independent audits of construction contractors. In fact, even if a certified audit is not required there can be no question that such a financial statement can only enhance borrowing and bonding capacity. Recently, the recession has hit the construction industry with bull dozer force. Due to the fall in the economy many building projects were delayed, scaled back or canceled. Smaller businesses feel the pressure much more than larger businesses, purely because larger businesses have more assets and resources upon which they can rely. While always competitive, the lack of projects has put many companies in financial peril. As the economy begins to recover it is imperative that businesses be prepared, in every sense, but most especially financially to take advantage of the opportunities which will be presented.

So how does one go about finding a qualified CPA firm? Referral from one's peers is always the best place to start. Beyond this referral, the individual or firm should ask the following questions.

Does the CPA firm have the experience necessary in this industry?

Do they have other construction/contractor clients?

Are there partners and staff in the firm who are knowledgeable about this industry?

Does the firm have a good reputation in the community?

Does the firm have solid relationships with lenders and other surety companies?

Is the CPA firm a good fit in terms of size and geographical location?

Is the CPA firm a good fit in terms of personality?

Above all, your primary factor in choosing a qualified CPA firm should be the value they can bring to the relationship. Why would clients underestimate their CPA's value, unless they can't identify the value a CPA brings to a relationship? Evaluating such elements as a proactive approach to your total financial goals and objectives, the ability to bring specialized expertise to your situation and superior professional credentials will help you make an informed decision on the CPA's skills and ability to address your unique needs.